Citadel Servicing Corp. (CSC) has announced that it is extending its debt-service coverage ratio (DSCR) program to its non-prime rate sheet – which means even better rates for investors looking to get into the property market.
“Now you can get DSCR pricing that is just out of this world – with no pre-payment penalty on your non-owner-occupied loan,” said Will Fisher, senior vice president and national sales and marketing director for CSC.
The program covers loans for non-owner-occupied properties between one and four units. It allows buyers to borrow based on the gross scheduled cashflow on the property.
“You do not need to look at the borrower’s debts. You do not need to look at their income,” Fisher said. “What you are looking at is their ability to cover the mortgage payment with the rents that are coming in from that subject property.”
Extending the DSCR program to CSC’s non-prime rate sheet will allow qualified borrowers to save big on their loans, Fisher said.
“By going to the non-prime rate sheet, you are looking at rates in the mid-5% range to start with,” he said. “And no pre-payment penalty – that is phenomenal. Most of the time, with other Non-QM lenders, you would have to buy out of a pre-payment penalty.”
Fisher said the program was tailored for property investors with a credit score of at least 600.
“If they want to get into the investing game and hold properties, this is a great product for them,” he said. “And it has nowhere near the restrictions that Fannie Mae and Freddie Mac non-owner-occupied products have.”