No Income: Your Best Investment Loan Option


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No Income: Your Best Investment Loan Option

Today we are going to discuss what your best investment loan option is if you do not have any income! That’s right! There are loan options available to you even if you don’t have a job, just changed jobs, or write everything off on your taxes. What is available to you and how do you get started? Let’s take a closer look!

Your best loan option!

One of the most versatile loan options available for investors is a DSCR loan. A DSCR loan is only available to investors and stands for the debt service coverage ratio. How do you qualify? As long as your rental property will cover the debt, you will be able to qualify for a DSCR loan. Unlike traditional loans, a DSCR loan will not take into consideration when you started your job or how long you’ve been self-employed. Instead, the lender’s primary focus is whether or not the income from the property qualifies for the loan.

Breaking even.

The debt service coverage ratio is what a DSCR loan is based off of and is where your property breaks even. While every property has a different break even point, this is the value that lenders will be looking at to determine whether or not the property qualifies for a DSCR loan

Expenses: Expenses include: The mortgage payment (including interest), taxes, insurance, flood, and HOA. 

Income: The rent received from the property.

For example:

If your rent is $1,000, then your expenses need to be $1,000 or less in order to qualify for a DSCR loan. The best scenario would be if your rents were $1,500 and the expenses were $1,000. This would create a $500 cash flow for the property.

Contact us today!

Don’t miss out on this best kept real estate secret! Find the best product today that not only provides ultimate flexibility but meets all of your investment needs as well. Here at The Cash Flow Company we are happy to run through the numbers with you to see what product is best for you. Contact us today to find out more about how you can qualify!

Watch our most recent video: How Can I Qualify for a Loan for My Real Estate Investments?