Investor Home Loans: Funding Your Future
Whether you’re a first-time real estate investor or a seasoned pro building your portfolio, you’re in the right place. At Accel, we specialize in DSCR loans where qualification is based on the property’s cash flow rather than your personal income, making investing in California real estate easier.
No Income or Job History Required
Lenders only look at the cash flow of the property you’d like to purchase.
First-Time Investors Can Qualify
Take that important first step, become a real estate investor, and start reaping the benefits.
No Limit on the Number of Properties
Take advantage of opportunities to scale up as you grow your real estate investment business.
Loan Amounts up to $5 Million
There are lots of options for those who qualify—everything from starter properties to larger investments.
WHAT IS DSCR?
DSCR stands for Debt Service Coverage Ratio, which is a comparison of a property’s cash flow to its debt obligations. Lenders will look at this ratio to see whether the property you want to purchase has enough positive cash flow to cover the loan.
WHAT IS A GOOD DSCR RATIO?
Lenders typically want to see a debt service coverage ratio between 1.25 to 1.50, which indicates there will be enough net operating income to cover the loan.
For reference, a DSCR of 1.0 means there is just enough cash flow to cover the loan and that you’ll be breaking even. This is a vulnerable position to be in, and lenders are wary that the mortgage might not get paid if cash flow dips. A DSCR of 1.25 to 1.50 means there’s enough cash flow to cover the loan, plus some additional buffer, which makes lenders much more comfortable.
WHY DOES DSCR MATTER TO INVESTORS?
When you apply for a home loan, lenders will look at your personal income and compare it to your expenses. The calculation tells a lender whether you have enough money in your budget for a monthly mortgage payment.
This can be problematic if you're an investor, especially if you have multiple properties in your portfolio. Your monthly debt payments could very well be more than your personal income, automatically disqualifying you from obtaining a loan.
That's why DSCR, where lenders instead look at cash flow and personal income is taken out of the equation, is great for investors.
WHAT ARE THE PROS AND CONS OF A DSCR LOAN?
As with any type of home loan, it’s important to understand both the pros and cons.
- Your personal income is not a factor in qualifying
- Faster application and closing
- Easy to scale because there’s no limit on properties
- A hefty down payment of 20% to 25%
- May have a higher interest rate than a traditional mortgage
- Not designed for large investments over $5 million
Estimate your monthly mortgage payments to find out what selling price best fits your budget.
HOW IT WORKS
How does our home loan process work? Find out how just how easy and hassle-free it is.
Have questions? Check out our comprehensive list of FAQs and learn more about home loans.
“Accel Mortgage facilitated such a seamless transaction and secured me the best interest rate available in the market. Highly recommend!”
YOU GET A TRUSTED PARTNER
We develop lifelong relationships with our clients. Because we believe there’s more to the business than simply quoting rates.
YOU GET SMART ADVICE
We’re consultants, not pencil pushers. We think long-term to help you get the most out of your home loan.
YOU GAIN KNOWLEDGE
Learn from the best—a skilled team with over 20 years of experience in the real estate industry.