Areas We Serve
At Griffin Funding, we can provide you with a DSCR business loan, and we are proud to serve all of Maine. Some of the areas that we serve include:
- South Portland
If you would like to learn more about Maine DSCR loans that we offer, we can help you. We have a wide range of options available for different types of borrowers.
What Is a DSCR Loan?
If you want a Maine DSCR loan, you need to understand exactly how this type of loan works. Even though there are many options for Non-QM loans, a DSCR mortgage could be the right option for you. If you are interested in a traditional mortgage, you will probably have to go through an extensive income verification process. Unfortunately, if you are a real estate investor, all of the deductions that you claim could artificially lower your income.
This might make it harder for you to qualify for a mortgage. Instead, you should talk to a DSCR lender about a debt service coverage ratio loan, which can make it possible to secure a loan without having to provide any proof of income. Instead, you can qualify for financing based on your debt service coverage ratio (DSCR).
How Does a DSCR Loan Work in Maine?
If you are having a difficult time qualifying for a mortgage, you should explore the possibility of a DSCR loan. With a DSCR loan, the borrower does not have to provide proof of income, but rather qualifies using their DSCR. Your DSCR measures the cash flow of your rental properties against your current debt obligations. A high DSCR indicates to lenders that you have enough income to repay the loan.
How Is DSCR Calculated?
The process of calculating this ratio is straightforward. To get your debt service coverage ratio, divide.your annual gross rental income by all of your debt obligations.
There are a few ways we can calculate your annual rental income. We can take a look at the lease agreement or analyze the rent schedule from the appraiser. If you have a consistent rent history for the past 12 months, we can also use that information to calculate your annual rental income.
When we calculate your annual debt, we will consider your principal amount, interest, home insurance, any real estate taxes, and possible HOA fees. Finally, we will use all of this information to provide you with a limit for your DSCR loan.
Who Qualifies for a DSCR Loan?
Even though this is a loan option that is open to many types of people, the people who typically qualify for this loan are real estate investors. This can be a great loan choice for these professionals because they are heavily involved in the real estate industry. These are people who typically claim a lot of tax deductions, which can make it hard for them to qualify for a traditional home loan. As a way to get around this issue, we provide DSCR loans at competitive rates.
Other Non-QM Loans From Griffin Funding
We are always happy to help you find the right loan option to meet your needs. In addition to DSCR loans in Maine, we offer a range of other Non-QM loans, such as:
- Asset-based loans: It is possible for you to qualify for a home loan using only your assets. If you do not want to use your income to qualify for a home loan, we can talk with you about asset-based loans.
- Bank statement loans: We would be happy to talk with you about loans you can qualify for using your bank statements deposits.
- Jumbo loans: If you require a particularly large home loan, we can talk with you about jumbo loan options. With a jumbo loan, you can secure large amounts of financing for as little as 10% down.
- Interest-only loans: Interest-only loans allow you to delay payments towards the principal amount of the loan for a certain period of time. If you only plan on holding on to a property for a short time, this might be a great choice for you.
Because there are so many options available, we encourage you to think carefully about the benefits and drawbacks of each option before you make a decision. Our team is always available to help you find the right loan.
Work With a Qualified DSCR Lender in Maine
Clearly, there are a lot of reasons why you might be interested in exploring Maine DSCR loans. This is only one of the many options available, and that is why you need to work with our team if you would like to apply for a loan.
We are Griffin Funding, and we are happy to help you find the right loan for your needs. Our loan specialists and other team members work to provide you with excellent support throughout the application and lending process. Reach out today to take the first steps toward achieving your homeownership goals.