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Non-QM - Debt Service Coverage Ratio (DSCR) Mortgage

Who is MBANC’s Non-QM – DSCR Mortgage best suited for?

Unlike most mortgage programs, MBANC’s DSCR mortgage program allows you to qualify using the rental income derived from the income property
  • Investors seeking to purchase or refinance an investment property, WITHOUT providing tax returns or bank statements to qualify
  • Qualify using assessed rental income

How Do The Non-QM – DSCR Mortgage Works?

These mortgages are portfolio loans that are not connected to any government agency. Approvals are primarily focused on the property cash flow.

Mortgage Program Highlights for Non-QM – DSCR Loan

  • Mortgage amounts up to $3 million for purchases
  • Up to $2 million for cash-out refinances
  • Maximum loan to value (LTV) is 75% on purchase transactions and 70% for cash-out refinances
  • Property can fit into 3 different debt service buckets:
    • Debt service greater than or equal to 1.15
    • Debt service greater than or equal to 1.10 – 1.14
    • Negative debt service
  • Must be able to demonstrate a 12-month history of ownership and management of rental properties. Commercial properties are acceptable if there is a majority ownership positions
  • Minimum credit score of 680
  • No DTI required
  • Minimum of 6 months reserves required**
  • Purchase transactions or refinance rate and term or cash out
  • Investment properties only are eligible for this program
  • Single family homes, condominiums, and 2-4 unit homes are all eligible for financing
  • Non-warrantable condo financing available on a case-by-case basis
  • Gift funds eligible, borrower must have at least 5% of their own money in the transaction
  • Interest only available
  • 5/7/10 year ARM – available
  • 30- and 15-year fixed – available
  • Minimum mortgage amount is $300,000
Mortgage amounts vary based on LTV, Credit, and overall creditworthiness*
More reserves will be required for mortgage amounts over $1,000,000.00**