In this episode, Scott Dillingham explains how investors can qualify for mortgages based on property cash flow rather than personal income through Debt Coverage Ratio (DCR) and Debt Service Coverage Ratio (DSCR) programs in Canada and the USA, providing alternatives to traditional qualification methods.
Key Timestamps:
[0:00] Traditional Qualification
- Income requirements
- Property limits
- Equity lending issues
[4:30] DCR/DSCR Programs
- Cash flow qualification
- Stress test differences
- Property eligibility
[8:45] Market Differences
- Canadian vs U.S. LTVs
- Mixed-use considerations
- Fee structures
[12:30] Program Benefits
- Interest-only options
- Extended amortization
- Portfolio expansion
[16:45] Qualification Process
- Required documentation
- Expense calculations
- Approval criteria
Key Points:
1. Program Features
- Property-based qualification
- No income requirements
- Unlimited portfolio potential
- Mixed-use property options
2. Market Differences
- Canadian 80% LTV maximum
- U.S. 75% purchase/65% refinance
- Different fee structures
- Interest-only availability
3. Cash Flow Requirements
- Rent calculation variations
- Expense considerations
- LTV adjustments
- Rate implications
Contact Information:
Book strategy call
Important Tips:
- Compare market options
- Consider amortization lengths
- Review fee structures
- Calculate cash flow accurately
- Plan refinance strategy
