Here is what is needed to do a DSCR loan.
Steps
1) Do you have an appraisal? If yes, I need:
Appraisal PDF
AIR Certificate
Appraisal xml (it ends in .xml)
Appraiser E&O Insurance
Some lenders allow you to pick any appraiser, some I have to go through an AMC (Appraisal Management Company)
2) Do you know the ratio? See this link, https://angeloakms.com/dscr-loan-calculator/ fill it out and you should get a number between 0% and 200% (100%+ means you are either breaking even or making money. Less than 100% means you are losing money.)
3) Did you pull credit? https://advantageplus.meridianlink.com/smartpay/SmartPay.aspx?uid=464711b2-c514-46b5-a3a2-c10c3e7037c6#forward
4) Do you know what prepay you want? You have a few options. 0-5 years. And 5% fixed which is 5% every year or Declining which might be 5-4-3-2-1- or 6 months interest.
5) Did you order title? I would need the title contact name and email to order the CPL, Alta with plat map and survey, Preliminary Hud, Tax cert in certain states.
6) Did you order insurance? I would need the insurance contact name and email to order the proof of insurance and proof it was paid or not. Note: some lenders require wind insurance on all loans. If the property needs flood, is it the same insurance agent?
7) Are you closing in a LLC? If yes, I need the EIN Letter, Formation docs, Operating Agreement, Certificate of Good Standing within 90 days.
8) If it’s not a cash out, (Purchase, Rate and Term Refinance) I need 2 months bank statements to show reserves. Note: Some lenders don’t need reserves if it’s 700+ FICO and less than 75% LTV
9) If it is a refinance or Cash Out Refinance I need the VOM (Verification of Mortgage) and Payoff Letter.
10) If it is a purchase I need:
Purchase Contract
Proof of Earnest Money Deposit
11) Do you rent or own a house for 2+ years? If you rent I need proof you paid rent or a rent free letter if you stay by relatives. If you own a house , it should show up on credit and may need the last month mortgage statement.
TO SUM UP:
Purchase docs
Credit Pull
Purchase Contract
If LLC, LLC docs (EIN Letter, Formation Doc, Operating Agreement, Certificate of Good Standing within 90 days)
Proof of Earnest Money Deposit
Title
Insurance
Appraisal
2 Bank Statements for reserves
Proof of Rent or Rent Free Letter or mortgage statement.
Drivers License or Passport
Voided Check or Full Bank Printout with routing and checking numbers.
Rate and Term Refinance Docs
Credit Pull
If LLC, LLC docs (EIN Letter, Formation Doc, Operating Agreement, Certificate of Good Standing within 90 days)
Title
Insurance
Appraisal
2 Bank Statements for reserves
VOM – Verification of Mortgage
Payoff Letter
Proof of Rent or Rent Free Letter or mortgage statement.
Drivers License or Passport
Voided Check or Full Bank Printout with routing and checking numbers.
Cash Out Refinance Docs
Credit Pull
If LLC, LLC docs (EIN Letter, Formation Doc, Operating Agreement, Certificate of Good Standing within 90 days)
Title
Insurance
Appraisal
VOM – Verification of Mortgage
Payoff Letter
Proof of Rent or Rent Free Letter or mortgage statement.
Drivers License or Passport
Voided Check or Full Bank Printout with routing and checking numbers.
If you want an easier but more expensive option, you can always go to Hard Money Lenders like Roc, RCN etc… They are usually .25% more expensive and don’t require housing docs. So for a cash out refi, they won’t require a rent free letter or latest mortgage statements.
If using Acra as the lender, here is the link to all of the forms needed to be signed.
https://app.hellosign.com/s/JBqS5pYK
If you have any questions call me or text 347-794-1592