Mixed Use Property DSCR Mortgage Loan Programs

Designed for real estate investors to finance mixed use properties, typically requiring at least 50% of the units being residential. This allows the program to fall under a standard DSCR mortgage program.

Mixed Use Property DSCR Mortgage Loan Highlights

• Understand the property type: Mixed-use properties have multiple units or purposes, such as a building with both residential and commercial spaces. It's important to understand the property type to determine if it meets the lender's criteria for the loan.

• Lender's criteria: The lender's criteria for mixed-use property DSCR mortgage loans may differ from traditional commercial or residential loans. Lenders will typically require a higher down payment and a higher DSCR ratio (typically 1.25 or higher) than traditional residential mortgages.

• Debt Service Coverage Ratio (DSCR): The DSCR is a ratio used to determine the property's ability to generate enough income to cover the loan payments. It's calculated by dividing the property's net operating income (NOI) by its total debt service (TDS). A higher DSCR indicates better financial health of the property and increases the likelihood of loan approval.

• Income requirements: Borrowers must demonstrate sufficient income to cover the mortgage payments and other expenses associated with the mixed-use property. Lenders will typically require the borrower to provide financial statements, tax returns, and other documentation to verify income.

• Property management: Since mixed-use properties often have multiple tenants and purposes, managing them can be more complicated than traditional residential properties. Borrowers should have a plan in place for managing the property or consider hiring a professional property management company to ensure that the property remains profitable.

In summary, borrowers should be prepared to meet higher down payment and DSCR ratio requirements when applying for a mixed-use property DSCR mortgage loan. It's also essential to understand the property type and have a plan in place for managing the property to ensure its financial viability.

This Non-QM mortgage product uses the Net Operating Income (Cash Flow) from the subject investment property to qualify the loan. It does not require full documentation for the owner of the property or LLC, typically rates are set based on the FICO score of the primary borrower, but employment and income documentation are not required.

DSCR = Net Operating Income/Debt Service (Principal + Interest + Taxes + Insurance + Association)

Small Commercial DSCR Mortgage Programs Available:

• Purchase / Refinance / Cash Out Refinance
• Up to 75% LTV Purchase
• Up to 75% LTV Cash Out
• Up to 30 Year Fixed
• Up to 40 Year Interest Only
• Up to $5M Loan Amount
• No Income or Employment Used
• 660+ Credit Minimum
• 5-8 Unit Properties
• Mixed Use Allowed

Apply Now to Purchase a Mixed Use Investment Property Using a DSCR Program!