No-doc rental loans are mortgages designed just for real estate investors. They allow you to qualify without income documentation.
No-doc DSCR rental loans are a good option for real estate investors because they don’t base your qualifications on tax returns, pay stubs, W-2’s or any other documentation. Instead, the focus is on the property’s cash flow and its market rent (as determined by an appraisal) – meaning the difference between the property’s income and its expenses.
Here’s how DSCR works: the debt service coverage ratio is the ratio of income derived from a property (i.e., rental income) to debt servicing, which includes your principal and interest payments, property taxes, and insurance (also known as PITI). HOA dues are also included when appropriate.
Here’s an Example
Say your rental income is $5,000 per month, and your new payment, taxes, insurance, and HOA dues total up to $4,000. In this case, your DSCR would look like this:
$5,000 (rents) / $4,000 (PITI) = 1.25 DSCR
In this scenario, you’d have a DSCR well above 1.1, thereby qualifying you for your no-doc rental loan
If your DSCR is low, meaning your rents won’t cover your payments, don’t fret. With the current hot real estate market, many times, rents have not yet caught up to property values. If this is the case in your scenario, your DSCR may be lower than 1.1
Fortunately, you can still qualify for a no-doc rental loan without a DSCR – or your rental income. To do so, you will need a minimum credit score of 700 and 25% down payment. You will also be limited to 75% loan-to-value ratio on refinance loans
Here are a few of the benefits you’ll enjoy with our No-doc Rental Loan options:
Apply for your No-doc Rental Property loan today
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Benefits of Using a No Doc Rental Loan to Refinance a Rental Property
What are No-Doc Rental Loans and Who are They for
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For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing. HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Loans, Real Estate Investor Loans, and Bank Statement Loans.