New Jersey DSCR Mortgage
For those looking to invest in real estate, the State of New Jersey is an ideal option. With its proximity to New York City and Philadelphia, New Jersey offers investors a wide range of potential tenants. The state also has a strong economy, with a diverse mix of industries that provide stability even during economic downturns.
And for those who are looking for a little more excitement, New Jersey also boasts some of the best beaches on the East Coast. So whether you’re looking for solid returns or a place to relax on the weekends, investing in New Jersey is a smart choice.
With knowing all advantages of investing in New Jersey real estate, you may be wondering what kind of home loan would be the best for it. At LBC Mortgage, we specialize in helping real estate investors secure financing, and we’re familiar with all the different types of loans available.
One loan that may be a good option for you is a DSCR loan. With a DSCR loan in New Jersey, you can qualify for a home loan without using your tax return. This can be a great alternative to other home loans, so if you’re interested in investing in real estate properties in New Jersey, DSCR mortgage may be a good option for you.
Exclusive DSCR Loans in New Jersey
New Jersey is a great state for real estate investors. There are plenty of properties to choose from, and the market is relatively stable. However, getting a home loan can be difficult unless you use a New Jersey DSCR mortgage.
DSCR loans are types of non-QM loans specifically designed for real estate investors who don’t receive pay stubs or tax returns. Since most lenders require these documents, it can be difficult for investors to get approved for a loan. However, with a DSCR loan, you can use the income from your investment property to qualify for the loan. This makes it much easier to get approved and finance your investment property.
Benefits of DSCR Mortgage In New Jersey
DSCR loans are becoming more and more popular in New Jersey. And it’s no wonder why! DSCR loans offer a number of benefits that other types of loans simply can’t match. They include the following:
- No income or job history is required.
- No personal income calculations are used to qualify.
- No limit to the number of investment properties owned or financed.
- Low debt service coverage ratio qualifications of 1.0 (qualify on the cash flow of the property only).
- Close a loan in the U.S.-based corporation, LLC, and/or partnership.
- Loan amounts up to $5 mil.
- Unlimited cash out.
- Non-warrantable condo investments are allowed.
- Delayed financing options.
- Airbnb short-term rental income is allowed.
- As little as 20% down payment.
- Interest-only loan payment is available.
- Down to a 640 credit score.
- First-time real estate investors are allowed.
- No reserves are required.
DSCR Mortgage Qualification Guidelines In New Jersey
If you’re thinking of buying a home in New Jersey, you’ll need to be aware of the state’s mortgage qualification guidelines.
Credit Score Requirements
The minimum credit score for a DSCR mortgage in New Jersey varies based on the lender and other conditions. Still, it is usually 640, which is comparable to the score needed for a regular investment property loan.
Debt-to-Income Ratio of Borrowers
Because the DSCR program uses a coverage ratio to assess eligibility, your personal debt-to-income ratio is not considered. This also indicates that lenders do not check your income or employment when you apply for a loan, which reduces the documentation required.
For Who Would DSCR Loans Be The Best Option
DSCR loans are best suited for real estate investors who want to invest in rental properties, and they can’t be used to buy owner-occupied properties. So, if it’s your case – you can be assured that the terms of the loan will be favorable for your investment.
When you apply for a DSCR loan, the lender will evaluate the cash flow of the property you’re looking to purchase. The lender wants to see that the rental income from the property will be enough to cover the mortgage payments, so it’s important to have a solid business plan for your investment. If you’re looking for a New Jersey-based loan that is specifically designed for real estate investors, then a DSCR loan may be right for you.
Apply For DSCR Loan In New Jersey Today!
LBC Mortgage is a trusted lender when it comes to DSCR loans in New Jersey. We have a long track record of helping investors finance their rental properties, and we’re familiar with the ins and outs of the process. If you’re interested in applying for a DSCR loan, we can help you get the best rate possible.
We’ll work with you to find a loan that fits your needs and budget, and we’ll guide you through the process from start to finish. Contact us today to learn more about our DSCR mortgage in New Jersey.