Rental Financing: Separate Investor Liquidity From Property Debt Service

By Don McClain | Founder & Principal, Medro Advisors

The New York Fed’s November 10 household credit report is national consumer data, not a DSCR loan approval guide. For a non-owner-occupied one-to-four-unit rental, prepare the property’s supported rent, taxes, insurance and proposed debt payment separately from the investor’s liquid reserves. Add a cash scenario for vacancy and repairs; it answers a different question from the lender’s qualifying calculation. Verify permitted equity sources and reserve requirements with the financing provider. America’s Loan Source focuses on investment-property financing, with terms determined by the actual property, borrower and program.

More from ALS Updates