Hot Products Now – SG Capital Investor Select No Ratio Program

SG Capital Investor Select No Ratio Program 

These programs are truly an out of the box type transaction and could be a great option for your clients who are looking to grow their investment property portfolio but are not able to document a certain level of income via traditional avenues.  

One of the largest pieces to these new programs is SG Capital considers these transactions loans for business purposes and they are NOT required to follow TRID guidelines.  This means no Loan Estimate or Closing Disclosure or any of the disclosure waiting periods that come with these documents.  Good Faith Estimates and actual HUD 1’s are used for these loans.  

These products are underwritten in house by AWM’s underwriters with no need for investor review prior to closing.  

Program highlights  

NO RATIO – no income or employment is listed on the 1003 

  • Minimum loan amount $75,000 
  • Loan amounts up to $2,000,000 
  • Fico scores down to 620 
  • 6 months PITIA reserves for subject property required (2 mo. for each additional financed property) 
  • 75% max loan to value 
  • Non Warrantable Condo Options 
  • Purchase – R/T – Cash out available 
  • First time investors not eligible 
  • Foreign National borrowers allowed (cash out not permitted) 

 
DEBT SERVICE COVERAGE RATIO (DSCR) – no income or employment is listed on the 1003, however the subject property must debt service  

  • Minimum DSCR of 1.1 required  
  • DSCR is calculated by taking the lower of the market rent from appraisal or current lease agreement rent divided by monthly PITIA 
  • Loan amounts up to $2,000,000 
  • Fico scores down to 640 
  • 6 months PITIA reserves for subject property required (2 mo. for each additional financed property) 
  • 80% max loan to value 
  • Non Warrantable Condo Options 
  • Purchase – R/T – Cash out available 
  • First time investor restriction – subject property value cannot exceed the property value of borrower’s primary residence (except when purchasing a multi-unit property) 
  • Foreign National borrowers allowed (cash out not permitted)