For example, rent must be $3,500 per month if the total house payment is $3,499. Good credit and down payment standards apply (or equity in the case of a refinance).Īs long as the monthly rent is at least one dollar more than the monthly house payment, including taxes and insurance, you should qualify. Underwriting is largely focused on the rents of the subject property. Cash-flow it is.ĭebt service coverage ratio financing, or DSCR loans, are especially good for borrowers struggling to meet F & F’s full-income documentation standards for investment properties. That’s a big, bad savings of $1,110 per month. That compares to a monthly payment of $2,424 for a fully amortizing 30-year fixed rate at 3.375% from Fannie and Freddie.
The interest-only payment on $548,250 would be $1,314.
How about a 30-year adjustable-rate mortgage with an initial interest-only payment for the first five years at 2.875%? What if you are the cash-flow king or queen? And you don’t care quite as much, or you don’t care at all about paying down the principal balance? Fannie, Freddie flip makes rental acquisitions enticing again – Orange County Registerīut there are alternatives to Fannie and Freddie as well.
