Upright has introduced debt service coverage ratio rental loans available to real estate investors.
DSCR is a measure of the cash flow available to pay back debts. A DSCR loan is a non-QM loan available to investors that allows lenders to judge qualifications without verifying personal income by focusing on rental income.
“Many customers at first come to us for our fix and flip loans. Often their exit strategy was to turn them into long-term rental properties, and we have previously had to refer them elsewhere. There was a piece of the puzzle missing,” Upright’s VP of Revenue, Brendan Bennett, said in a statement.
“By introducing DSCR Rental Loans, we are better able to serve the needs of more customers throughout their entire real estate investment journey.”
Investors can choose 15- and 30-year fixed, ARM, and Interest-Only options. The loans have no debt-to-income considerations, and rental income is the only verification required.
These loans are available for modular, 2–4 unit residences, condominiums, townhomes, and multi-family properties up to 10 units.
Upright requires a minimum FICO of 640, and a minimum loan amount of $75,000.
Cleveland-based Upright is a fintech platform providing software tools for real estate investors. It was founded with the mission of helping developers access funding for rehab and new construction projects.
It is in the process of expanding its services for both active and passive investors, including individual borrower-dependent notes and REIT-like funds.
The company, formerly called Fund That Flip, rebranded in August after acquiring FlipperForce, a web-based software platform for redevelopers and builders.
The announcement comes just weeks after Upright laid off about half its staff.