Real Estate Investor Loan Summary
Residential Properties

​DSCR Purchase Loans are for properties that are in rent-ready condition and not in need of renovations or repairs. Any repairs or renovations that would prevent a property from being rented would require completion prior to closing. A purchaser's desire for cosmetic updates are not a deterring factor, but keep in mind DSCR purchase loans do not allow for any cosmetic improvements to be financed within the loan. This program has become very popular in recent years, allowing many first-time investors to begin portfolios and allow experienced investors to keep growing. The program utilizes the property fair market rent as the qualifying income, without the need for any borrower tax returns, employment verifications, or any debt-to-income ratios. Properties being purchased do not require tenants-in-place prior to closing, nor do they require post-closing rent verifications. It is up to the new purchaser to decide on when the property enters any lease or formal rent agreement. DSCR loans cover many property types including Single Family, Multi-family, Condominiums, Condotels, and many types of Mixed-use Residential/Commercial properties. 

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DSCR Refinancing is another commonly used program where investors can pay off an existing loan or even pull cash out from available equity. Cash proceeds are intended to be used for business-purposes, such as improvements your Real Estate portfolio or for purchasing additional properties. Any property type eligible for a DSCR purchase is eligible for a refinance. In a refinance, properties should be currently rented or available for rent. A tenant-in-place is not required if the property was recently acquired from a divorce, inheritance, recently renovated, or other "make-sense" reasons why a tenant is not yet in-place. Full-time occupancy is not required if the property is a short-term rental.

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Renovation Programs are intended for properties that are being sold under market and in need of repairs or renovations prior to occupancy. These programs are often referred to as a Bridge Loan, Hard Money, Fix and Flip, or Fix and Hold. The loan purpose is to purchase a property, finance renovations, and ultimately hold as a rental or sell for profit. Renovations can be financed at 100%, with initial down payments to acquire as low as 10% loan-to-cost, even for first-time investors. The programs do not have pre-pay penalties, and feature interest-only payments based on 30-year terms. These types of loans are paid-back when the property has completed the renovations. For properties being flipped, any outstanding loan balance is paid in full when the property is sold. For properties being held as rentals, a long-term solution (like a DSCR loan) can be used to pay off the outstanding loan balance once the renovations are completed and the property is ready to rent.  

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Renovation refinancing is also possible for properties that were already acquired, and the property owner needs to finance improvements to either flip or hold for a rental. 

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It is important to note that both DSCR and Renovation program options become limited and restricted for rural properties. Renovation loans can be restricted in lower-density areas. If you have concerns with a potential DSCR property possibly having a rural designation or seeking a renovation-type program in a lower-density area, please contact us and we'll be happy to research further. 

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The non-QM product suite offers other types of programs specifically designed for self-employed borrowers and utilize alternative income methods where traditional loans are not possible. These include business bank statements, 1099, Profit and Loss, and other ways where business-purpose loans for Real Estate purchases can qualify on business cash flow. These program types are also for rent-ready properties and are potential options for rural properties that may not be DSCR-eligible. ​

Often times a borrower may qualify for one or more programs. Your Key Home Real Estate Funding family of professionals welcome the opportunity to serve your needs and provide the right information so you can make a well-informed decision for your needs and goals. 

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Please contact us at 855-305-6358 or email info@keyhomeref.com, and we will be happy to assist you!

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Not a commitment to lend. All borrowers and properties must meet eligibility requirements 

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