Debt Service Coverage Ratio (DSCR) Loans are becoming widely popular for investors for a variety of reasons. One of these reasons is how easy the approval process is and how little documentation is actually needed from the investor! We put together a quick outline of these documents and a brief explanation of them!
- Driver’s License: the easiest form of identification of the borrower
- LLC Documents:
- Articles of Organization
- EIN Document
- Operating Agreement
- Appraisal: The property will be appraised by a licensed appraiser. The appraiser will also perform a rental market analysis and include that in his report
- Insurance Policy: a standard landlord policy from your insurance agent will work just great for these loans
- Lease Agreement (Occasionally): if the property is leased with tenants, a copy of the lease will need to be provided
- 2 Bank Statements: These are used to confirm that there is enough liquidity in the bank account to cover a few months of mortgage payments in case the property becomes vacant during a turnover
- Title Work: We work with your title or settlement company. We can also work with your title attorney! They will provide necessary documents.
