Success Stories

Self-Employed investor makes multi-property purchase with a DSCR loan

By Colin McMahon

August 31, 2023 3 min read

Self-Employed investor makes multi-property purchase with a DSCR loan

In the challenging landscape of real estate, certain investor profiles, like the self-employed, often grapple with stringent lending prerequisites. Enter our client: a self-employed first-time investor with ambitious plans to venture into several properties simultaneously.

A single-family residence in Houston, TX, with a valuation of $450,000, was among the coveted properties. But his unique scenario demanded an equally unique financing solution. Traditional DTI (Debt to Income) loan criteria often pose challenges for self-employed individuals. Why? The fluctuating income of entrepreneurs and self-employed professionals can sometimes make their debt-to-income ratio appear less stable, making it more challenging to secure loans.

Simultaneously, with plans to purchase multiple properties at once, the intricacies amplified. Most lending institutions typically evaluate personal income and consumer debt when deciding on mortgages. This can be a limiting factor, especially for self-employed investors who may have variable income streams or wish to separate their business finances from their personal ones.

But this investor had a spark of inspiration from Milo's reputation – particularly after hearing about our pioneering crypto mortgage. Recognizing our knack for crafting bespoke solutions, he turned to Milo, hopeful.

Milo's expertise doesn't merely lie in conventional financing methods. We are pioneers in leveraging the DSCR (Debt Service Coverage Ratio) loan system. DSCR loans focus on the property's ability to generate revenue, essentially evaluating a property's rental income against its potential mortgage payments. This means self-employed investors, like our client, can bypass the stringent DTI requirements, making it easier to finance investment properties.

Understanding the urgency and the scale, we swung into action. The result? A 75% LTV DSCR loan, perfectly aligned with his requirements. What's more, we efficiently processed multiple loans for him, all in tandem, ensuring he could move forward with his property ventures without a hitch.

In conclusion, Milo transformed the intricate maze of financing multiple properties for a self-employed investor into a streamlined path. If you're a self-employed professional eyeing an investment, or you're considering multiple property ventures, Milo has the expertise to guide you. Dive into the world of DSCR loans and bespoke financing solutions with Milo today.

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The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

Author

Loan Consultant Sales Team Lead

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