Investment Property Financing &
Debt Service Coverage Ratio Loans
What is Investment Property Financing?
An investment property is a property that is typically purchased for land development, reselling, or renting to tenants. The owner of the property doesn't live in a dwelling on the investment property.
What do I need to do to start financing an investment property?
Before you start looking for a property, we recommend taking an honest look at your finances and determining what you can afford for a down payment and an ongoing monthly payment.
When you're ready to start looking for a property, reach out to us and we'll help you get started on your investment property loan process!
What is a Debt Service Coverage Ratio (DSCR) Loan?
A Debt Service Coverage Ratio (DSCR) loan is built for investment properties with a solid rental income. Instead of tax returns, bank statements, and employment information, DSCR qualifies the loan using the net operating income (NOI) of the property.
Coverage ratio is a simple formula used to qualify a loan. At JPAL, we make it easy with a coverage ratio of 1.00x. This means that to qualify for a $3,000 monthly loan payment, the rental property needs a net operating income of $3,000 or more per month. Simple! There are other factors that go into underwriting these loans, but this is the basis of DSCR.
Is a DSCR mortgage loan right for me?
We write DSCR loans for personal and commercial investors. If you're looking to purchase or refinance a rental property, need cash out for additional investments, or your Debt-to-Income (DTI) is high, a DSCR loan might fit the bill. The best way to start is to reach out to us! We'd love to speak with you about all of your options and find the solution that makes the most sense for you.
Why choose JPAL Mortgage?
JPAL Mortgage has the mortgage financing experience you need to help design customized financing solutions for our customers. JPAL Mortgage works with many fantastic investors and realtors to offer loan programs that provide our borrowers with the best financing solutions possible.