Investor Cash Flow (DSCR Loan)
Credit scores starting at 680
Up to 80% LTV
Angel Oak’s Investor Cash Flow mortgage (DSCR Loan) program allows your clients to qualify based on rental analysis to determine property cash flow. No personal income required to qualify. This saves you from submitting complicated income statements and tax returns. Debt service coverage ratio or DSCR is a measurement of a property’s expected cash flow to determine ability to repay a mortgage loan.
- Loans up to $3 million, Minimum loan of $100,000
- Qualification based on property cash flow
- No personal income or employment information required
- Properties can be in LLC’s name
- No limit on total number of properties
- Borrower must own primary residence
- Purchase and cash-out or rate-term refinance
- 30 year interest only available
- Loan amounts greater than or equal to $1,500,000, a borrower paid second appraisal must be obtained.
- Non-warrantable Condos now allowed
- Condotels now allowed (contact your local account executive for eligibility requirements)
- We currently offer business purpose loans from approved clients who may hold an active license in some states but not the one for the subject property. The states for which this may apply are CO, FL, GA, IN, LA, NM, OH, OK, PA, SC, WA, and WI.
- Non-permanent residents allowed
FAQ's
Example Rent Divided PITIA (RDP)
$1100 Rent / $1000 PITIA = 1.10% DSCR Positive Cash Flow
$1000 Rent / $1000 PITIA = 1.00% DSCR 1 to 1 Break Even
$900 Rent / $1000 PITIA = .90% DSCR Negative Cash Flow
What is the benefit to originators who use non-QM loan products?
Originators who utilize non-QM offer a service that their competition may not offer. They become an expert and go-to for the non-QM borrower. The benefit is increased referrals and business growth despite changes in the market. Continue to increase your volume each year regardless of fluctuating interest rates, tighter Agency guidelines, and a slowing refinance market.