The real estate investment market, driven by rising rents and returns, is attracting a wave of single and multi-unit property investors including non-U.S. citizens, according to Deephaven. The company, which specializes in non-QM/non-agency lending solutions, amped up its Foreign National DSCR (Debt Service Coverage Ratio) program to meet their need for financing.
Offered through Deephaven’s wholesale and correspondent channels, the program further streamlines mortgage lending by eliminating certain documentation requirements that otherwise could present barriers to a speedy closing, according to the company.
“Speed and efficiency are important to non-U.S. citizens, who often need to complete transactions within a compressed period, before traveling back home,” said Mack Walker, senior vice president, director of Capital Markets, Deephaven.
In place of typical borrower income qualifying criteria such as W-2’s, Deephaven calculates the projected cash flow of the property to determine whether the monthly rental income meets or exceeds the debt service requirements of the loan. Whether it’s an experienced investor who wants to unlock existing equity via a refinance in order to acquire more assets or a first-time investor, the company says it can lend up to $1.5 million, with a maximum 75% LTV for purchases and 70% for refinances.
The Foreign National Program requires 12 months of reserves to be held in a U.S. FDIC-insured bank, and the money can be used for condominiums, non-warrantable condos, planned unit developments (PUDs), and two- to four-unit multi-families. Assets for closing must be seasoned in a U.S. depository for at least 30 days prior to the close.
