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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 $1.5 million, Minimum loan of $75,000
  • 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 or have a current history of owning investment properties
  • Purchase and cash-out or rate-term refinance
  • 40 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
  • Short term rentals ok, no condotels

FAQ's

How do you calculate the debt service coverage (DSCR)?
The debt service coverage ratio (DSCR) is a ratio of a property's cash flow to its annual mortgage debt. Angel Oak includes principal, interest, taxes, insurance and HOA fees in the mortgage debt. The ratio is calculated by taking the expected rental payment and dividing it by the annual mortgage debt RDP (Rent Divided PITIA= DSCR).

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
Can I get a mortgage for an investment property?
Yes, utilizing our Investor Cash Flow product allows for cash flow on the property to be used to qualify for the loan. No tax returns or employment information required.
Is personal income required to qualify for an Investor Cash Flow loan?
No personal income is required to qualify. This saves you from submitting complicated income statements and tax returns.
Do real estate investment loans close faster than other mortgage loans?
Typically these loans do close quicker than others but this can vary. Contact an Angel Oak account executive to discuss your loan scenario.

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.

Additional Program Options