Debt Service Coverage Ratio

Debt Service Coverage Ratio

Commercial Bridge Loan Program

Simple Qualifying

Less Hassle

Long Term Advantage

Eligible Property Types: Small Commercial, Residential, Multi-Family, and Construction

No-doc Debt Service Coverage Ratio(DSCR) rental loans are a good option for real estate investors because qualifications aren’t based on your tax returns, pay stubs, W-2’s or any other documentation. Instead, the focus is on the property’s cash flow and its market rent (as determined by an appraiser’s market rent survey) – meaning the difference between the property’s income and its expenses.

 

Here’s how DSCR works: the debt service coverage ratio is the ratio of income derived from a property (i.e., rental income) to debt servicing, which includes your principal and interest payments, property taxes, and insurance (also known as PITI). HOA dues are also included when appropriate.

The equation for DSCR is
Rents/ PITI + HOA Dues = DSCR

Here’s an example:

Say your rental income is $5,000 per month, and your new payment, taxes, insurance, and HOA dues total up to $4,000. In this case, your DSCR would look like this:

$5,000 (rents) / $4,000 (PITI) = 1.25 DSCR

In this scenario, you’d have a DSCR well above 1.0, thereby qualifying you for your no-doc rental loan.

 

If your DSCR is low, meaning your rents won’t cover your payments, don’t fret. Fortunately, you can still qualify for a no-doc rental loan without a DSCR or your rental income. To do so, you will need the NO RATIO loan. You will also be limited to maximum 70% loan to value.

  • No tax returns, no leases required
  • No rental income, no income verification
  • No DSCR (debt service coverage ratio)
  • No reserves

Pros About Commercial Bridge Loans:

What Do I Need To Qualify?

  • Simple… Equity in the property!
  • Origination Fee: 1.50% + of the loan amount
  • Processing Fee: Based on Project Size
  • Underwriting Fee: Based on Project Size
  • Prepayment Penalties: None! (3+ months of minimum interest earned)

Required Documents For Closing

Property Documents

Purchase Contract
Payoff Statement (if Refinance)
Rent Roll & Leases
Renovation Budget (if Rehab)

Personal Documents

Loan Application
Track Record / Experience / SREO
Last Month's Bank Statement
Drivers License and/or Passport

Business Documents

Articles of Incorporation
Operating Agreement (LLC) or Bylaws (Corp.)
EIN Letter

Is a Commercial Bridge Loan Right For Me?

Benefits of our Commercial Bridge Loans:

  • Close in 14 Days
  • Up to 75% LTV
  • No Income Documentation
  • No Occupancy Requirement
  • Low Credit Requirement
  • No Prepayment Penalty

Loan Fees And Costs

Origination Fee: 1.50% + of the loan amount

Processing Fee: Based on Project Size

Underwriting Fee: Based on Project Size

Prepayment Penalties

None! (3+ months of minimum interest earned)

Eligible Properties for Commercial Bridge Loans

Industrial

Industrial is property classification used for manufacturing, production, and storage facilities. At Capital Funding Financial, we will lend to real estate investors looking to purchase or refinance industrial properties with loan amounts of $250,000+.

Retail

Retail is any property used for commercial retail space such as a storefront for selling goods or services. Capital Funding Financial will lend to real estate investors and business owners who are looking for a loan for: purchase, refinance, bridge to stabilization, bridge to sale, or bridge to construction take out from $250,000+.

Multi Family

Multi-family is a classification of housing where multiple units (5+) for residential use are contained within one or more buildings within one community or complex. At Capital Funding Financial, we will lend to real estate investors looking to purchase or refinance multi-family properties with loan amounts of $250,000+.

Office

Office is a property classification which generates income from tenants comprised of businesses and professionals. Capital Funding Financial will lend to real estate investors and business owners who are looking for a loan for: purchase, refinance, bridge to stabilization, bridge to sale, or bridge to construction take out from $250,000+.

Mixed Use

Mixed-use is a type of development that blends residential and commercial uses into one integrated complex or building. At Capital Funding Financial, we will lend to real estate investors in the following scenarios: purchase, refinance, bridge to stabilization, bridge to sale, or bridge to construction take out on mixed use projects with loan amounts from $250,000+.

Hospitality

Capital Funding Financial will lend to experienced operators with a flag in the hotel and lodging sector. Loan amounts are $500,000+.

Approval Process

Approval Process

The approval process for a commercial loan typically involves a comprehensive evaluation of the borrower’s financials, creditworthiness, and the value of the property being financed. The process may also involve an appraisal of the property, review of relevant legal documents, and due diligence to ensure the borrower’s ability to repay the loan.

  • Submit Application

  • Loan Approval

  • Validation & Title

  • Underwriter Final Review

  • Prepare for Closing

Approval Process

Close in as little as 7 – 14 Days! From start to finish in 5 easy steps!

Step

1

Submit Application

Step

2

Loan Approval

Step

3

Validation & Title

Step

4

Underwriter Final Review

Step

5

Prepare for Closing

If You Need Help Or Have Question, Get A Consultation

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat