Insight
HELOC or Cash-Out Refinance: Which Is Right for Me?
Homeowners can leverage their home equity to get more done. But how do you know which home equity loan option to choose?
DSCR Loan Program
Less Paperwork, Quicker Closing
Fast-track your investment property purchase or refinance. Simplify the paperwork. Qualify for a loan faster. Enjoy competitive rates. Get it all with an Axos Bank investment property loan. No mortgage broker needed!
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How does DSCR work? DSCR
If you apply for a traditional mortgage, you’re asked to document your income. This can be complicated if you’re self-employed, own a business, or have non-traditional income sources.
DSCR streamlines income qualification by using the cashflow of the property. Here’s how we do it at Axos Bank.
- 1We look at the current rent and an appraiser’s market rental analysis.
- 2We calculate the expected net rent using whichever is lower: actual rent or market rents.
- 3The rent from the property will be divided by the proposed new mortgage payment to calculate the DSCR for the proposed loan.
If the calculation exceeds the minimum ratio required by the investor guidelines for the loan, the rent from the property will be used as the primary source of repayment and qualification
If the calculation doesn’t meet the minimum ratio required by the investor guideline for the loan, you may qualify for our no ratio option
Simple Loans for Real Estate Investors
Our Debt Service Coverage Ratio (DSCR) program makes it possible. Use the property’s expected net rents as an income qualifier. Plus, work directly with Axos Bank and cut out the mortgage broker fee.
- Loans from $150k up to $30MM+
- Entity title vesting
- No limit on cash-out amounts
- Interest-only options, even with cash out
- No income docs or W2s required
How does DSCR work?
No Ratio Option
No ratio option is available when meeting the following:
- Minimum FICO 700
- Maximum loan amount $1.5 million
- Meets LTV requirements1
DSCR in Action
Hassle-Free Cash Recapture
Here’s how we helped an investor recapture their cash with a low-document rental property refinance in Topanga, CA.
- Net rent was used to establish income qualification
- Investor replenished the funds used to purchase the property
- Loan was vested in entity (LLC)
- Investor maximized cash flow with 5/1 interest-only ARM
Ready to purchase a rental property?
Quickly, easily apply online or give us a call to get started.
Home Purchase
Be confident with the support of a dedicated team, advanced real estate technology and tools, and our Close-of-Escrow Guarantee.2
Home Refinance
Lower your rate, reduce your monthly payment, consolidate debt, or get cash for a major purchase or home improvements.
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As a small business owner, my taxes are complicated. Josh's knowledge, expertise, and dedication to finding solutions led to me getting my new house while refinancing another property. My monthly payment and interest rate are lower than I ever could have imagined.
Heidi|California
My experience with Axos Bank was much easier than other lenders I’ve used in the past. Emme explained the rates, terms, and discounts, and was easy to contact by phone. I received a better deal than what was offered by other lenders
Robert|Arizona
Kelly was friendly and helpful. He kept me updated as my refinance progressed, and he helped me find ways to overcome hurdles that were preventing me from qualifying.
Anthony|New Jersey
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Mortgage Calculator
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Insight
First-Time Mortgage Refinance Guide
Worried that refinancing your home loan will be too much effort? Check out this guide.