Which lender has the lowest fico score requirement for DSCR

The lender with the lowest FICO score requirement for DSCR programs is Arc Home, with a minimum FICO score of 600 for their Edge DSCR program.

Summary of Minimum FICO Scores for DSCR Programs by Lender:

If you'd like more details about any specific program or lender, let me know!

The "best" DSCR lender depends on your specific needs and priorities, such as credit score, DSCR requirements, loan-to-value (LTV), property type, or other factors. Here's a breakdown to help you decide:

Key Factors to Consider for DSCR Lenders

Best DSCR Lender Based on Specific Needs

• Lowest FICO Requirement: Arc Home (600 FICO for Edge DSCR program).
• Lowest DSCR Requirement: American Heritage Lending (0.7 DSCR for Invest Star program).
• No DSCR Requirement: FundLoans (Spectrum No Ratio program).
• Best for First-Time Investors: A&D Mortgage (DSCR < 1 allowed with specific FICO).
• Best for Short-Term Rentals: Angel Oak (Investor Cash Flow program with DSCR as low as 0.8).

Recommendation

If you share more details about your priorities (e.g., credit score, property type, or loan purpose), I can help narrow down the best lender for your situation. Let me know!

Champions Funding is the fastest DSCR lender, capable of closing loans in as little as 5 days with a transferred appraisal.

Summary of DSCR Lender Closing Times:

Key Takeaway:

If speed is your priority, Champions Funding is your best option for DSCR loans, provided all documentation and appraisal transfers are handled efficiently. Let me know if you'd like more details about their programs or assistance with the process!

Yes, Champions Funding can close DSCR loans in as little as 5 days with a transferred appraisal, provided all conditions are met.

Key Requirements for a 5-Day Closing:

1. Transferred Appraisal:

   • Champions Funding accepts transferred appraisals for all DSCR programs, including:
     • Accelerator DSCR 1-4 Unit
     • Ambassador DSCR 1-4 Unit
     • Accelerator DSCR 5-8 Unit
     • ITIN Accelerator DSCR 1-4 Unit
   • The appraisal must meet their guidelines, including compliance with property condition standards and no structural deferred maintenance.

2. Complete Documentation:

   • All borrower qualifications, property conditions, and underwriting requirements must be submitted accurately and on time.

3. No Delays in Third-Party Verifications:

   • Ensure there are no delays in compliance checks or third-party verifications.

If you'd like assistance with ensuring a smooth process or need more details about their DSCR programs, let me know!

Yes, Champions Funding can close DSCR loans for short-term rental (STR) properties in as little as 5 days, provided all conditions are met, including a transferred appraisal and complete documentation.

Key Points for STR Loans with Champions Funding:

1. Short-Term Rental Eligibility:

   • Champions Funding allows STR income for DSCR qualification in the following programs:
     • Accelerator DSCR 1-4 Unit
     • Ambassador DSCR 1-4 Unit
     • ITIN Accelerator DSCR 1-4 Unit
   • STR income must be documented using rental history or appraiser-provided market rents.

2. Transferred Appraisal:

   • Champions Funding accepts transferred appraisals for STR properties, which can expedite the closing process.

3. 5-Day Closing Requirements:

   • All documentation, including STR income verification, must be submitted upfront and error-free.
   • The appraisal must meet Champions Funding's guidelines and be transferred without issues.

If you're considering an STR loan with Champions Funding, I recommend ensuring all documentation is ready to avoid delays. Let me know if you'd like help with the process or more details about their STR programs!

Key Details for DSCR Loans with a 620 FICO Score at Champions Funding:

Maximum LTV:

• 75% for Purchase and Rate/Term Refinance.
• 70% for Cash-Out Refinance.

Loan Options:

• 30-Year Fixed
• 5/6 ARM, 7/6 ARM, 10/6 ARM
• 40-Year Term with Interest-Only (I/O) (Note: I/O requires a minimum 680 FICO).

Prepayment Penalty (PPP):

• Standard term is 3 years, calculated as 5% of the unpaid principal balance.
• PPP can be structured for 1-5 years, depending on state regulations.

Additional Notes:

• DSCR Requirements: DSCR must be ≥ 1.00 for 620 FICO. DSCR < 1.00 or No Ratio is not eligible for this credit score.
• Interest-Only Option: While available, it requires a minimum 680 FICO.

If you'd like more details or assistance with this program, let me know!

Key Details for the Ally (Accelerator DSCR) Program with a 620 FICO Score:

Maximum LTV:

• 65% for DSCR ≥ 1.00 and loan amounts under $1,000,000.
• DSCR < 1.00 is not eligible for a 620 FICO score.

Loan Options:

• 30-Year Fixed
• 5/6 ARM, 7/6 ARM, 10/6 ARM
• Interest-Only is not available for a 620 FICO score (requires a minimum 680 FICO).

Prepayment Penalty (PPP):

• Standard term is 3 years, calculated as 5% of the unpaid principal balance.
• PPP can be structured for 1-5 years, depending on state regulations.

Additional Notes:

• This program is designed for investment properties only.
• A 620 FICO score does not qualify for DSCR < 1.00 or No Ratio options.

If you'd like more details or assistance with this program, let me know!

Champions Funding Programs for Business Owners Using Bank Statements

Champions Funding offers several programs tailored for business owners who want to qualify using bank statements instead of traditional income documentation. These programs are ideal for self-employed borrowers or business owners.

Key Program for Bank Statement Qualification:

Activator – FULL & ALT-DOC

• Eligibility: Designed for self-employed borrowers, including business owners.
• Income Documentation:
  • 12 or 24 Months Bank Statements (Personal or Business).
  • Expense ratios may apply for business bank statements.
• Occupancy Types:
  • Owner-Occupied, Second Home, and Investment Properties.
• Credit Score: Minimum 640 FICO.
• Maximum LTV:
  • Up to 90% for Purchase or Rate/Term Refinance with a 740+ FICO.
  • Lower LTVs for cash-out or lower credit scores.
• Loan Options:
  • Fixed-rate and ARM options available.
  • Interest-Only options may be available for higher FICO scores.

Other Options for Business Owners:

1. Accelerator - FULL & ALT DOC:

   • Similar to Activator but includes more flexible terms for investment properties.
   • Allows for bank statement qualification.

2. Super Jumbo Full/Alt Doc:

   • For high loan amounts, but limited to owner-occupied properties.
   • Requires higher credit scores and stricter guidelines.

Next Steps

If you're a business owner looking for a bank statement program, the Activator – FULL & ALT-DOC is likely the best fit for owner-occupied properties. Let me know if you'd like more details or assistance with this program!

Whether Champions Funding offers the "best" DSCR program depends on your specific needs, such as credit score, DSCR requirements, LTV, property type, and loan features. Here's a breakdown of their DSCR program highlights compared to other lenders:

Champions Funding DSCR Program Highlights

1. Minimum FICO: 620 for Accelerator DSCR 1-4 Unit and Ambassador DSCR 1-4 Unit.
2. Maximum LTV:
   • 85% for Purchase or Rate/Term with a 740+ FICO and DSCR ≥ 1.00.
   • 75% for 620 FICO with DSCR ≥ 1.00.
3. Loan Options:
   • Fixed-rate and ARM options (5/6, 7/6, 10/6).
   • Interest-Only available for higher FICO scores (680+).
4. Short-Term Rentals (STR):
   • STR income is allowed for DSCR qualification.
   • Requires documentation of rental income (e.g., appraiser market rents or rental history).
5. Prepayment Penalty (PPP):
   • Standard 3-year PPP, with flexibility for 1-5 years depending on state regulations.
6. Closing Speed:
   • Can close in 5 days with a transferred appraisal and complete documentation.

Comparison to Other Lenders

Why Choose Champions Funding?

• Fast Closings: Champions Funding is one of the fastest DSCR lenders, capable of closing in as little as 5 days.
• STR-Friendly: They allow short-term rental income for DSCR qualification, making them ideal for Airbnb/VRBO investors.
• Flexible LTV Options: Up to 85% LTV for high-credit borrowers, competitive with other top lenders.
• Low FICO Requirement: Accepts borrowers with a 620 FICO, which is competitive but not the lowest (Arc Home allows 600).

When Champions Funding May Not Be the Best Fit

• If you need a lower FICO requirement (Arc Home offers DSCR loans with a 600 FICO).
• If you need DSCR < 1.00 (A&D Mortgage or Arc Home may be better options).

Recommendation

Champions Funding is an excellent choice for borrowers who prioritize fast closings, short-term rental income, and competitive LTVs. If you'd like more details or help comparing programs, let me know!

You're welcome! 😊 If you have any more questions or need further assistance, feel free to ask. Good luck with your loan process! 🚀

To Close a Champions Funding DSCR Loan in 5 Days with a Transferred Appraisal:

For Champions Funding to close a DSCR loan in 5 days, the following conditions must be met:

Key Requirements for a 5-Day Closing

1. Transferred Appraisal:

   • The appraisal must meet Champions Funding's guidelines.
   • Ensure the appraisal is compliant with property condition standards and has no deferred maintenance issues.
   • The transfer must be completed and accepted by Champions Funding before underwriting.

2. Complete Documentation:

   • Submit all required documents upfront, including:
     • Borrower identification.
     • Property details.
     • DSCR calculation (e.g., lease agreements, appraiser market rents, or STR income documentation if applicable).
   • Ensure all documents are accurate and error-free to avoid delays.

3. Pre-Underwriting Review:

   • Champions Funding requires a pre-underwriting review to ensure the file is complete before submission.
   • Any missing or incorrect information can delay the process.

4. Clear Communication:

   • Work closely with your account executive or loan officer to address any conditions or questions immediately.
   • Respond to any requests for additional information within hours, not days.

5. State-Specific Regulations:

   • Ensure the loan complies with state-specific regulations, especially for prepayment penalties (PPP) and short-term rental (STR) properties.

Can You Market This on Social Media?

Yes, you can market this on social media, but ensure your messaging is compliant with advertising regulations. Here are some tips:

Suggested Marketing Message:

🚀 Close Your DSCR Loan in Just 5 Days!
With Champions Funding, you can close your investment property loan in as little as 5 days with a transferred appraisal. Perfect for short-term rental (STR) investors and business-purpose loans.
✅ Fast Closings
✅ Flexible DSCR Options
✅ Short-Term Rental Income Allowed
Contact me today to get started!

Compliance Tips for Social Media Marketing:

1. Disclosures:

   • Include a disclaimer like: "Closing in 5 days is subject to complete documentation, appraisal transfer acceptance, and underwriting approval."
   • Mention that terms and conditions apply.

2. Avoid Misleading Claims:

   • Do not guarantee a 5-day closing for every borrower. Emphasize that it depends on meeting all requirements.

3. Focus on Benefits:

   • Highlight the speed, flexibility, and STR-friendly features of Champions Funding's DSCR programs.

4. Check with Champions Funding:

   • Confirm with your Champions Funding account executive that your marketing materials align with their compliance guidelines.

If you'd like help crafting a compliant social media post or need more details about Champions Funding's DSCR programs, let me know!

Video Script: Champions Funding DSCR Loan – Close in 5 Days!

Opening Scene:

• Visual: A busy real estate investor walking through a property, checking their phone.
• Voiceover:
  "Are you an investor looking for a fast and flexible loan solution for your next property? What if you could close in just 5 days?"

Scene 1: Introducing Champions Funding

• Visual: Champions Funding logo appears on screen with a tagline: "Fast. Flexible. Reliable."
• Voiceover:
  "At Champions Funding, we specialize in DSCR loans designed for real estate investors like you. Whether you're purchasing or refinancing, we can help you close in as little as 5 days—yes, 5 days!"

Scene 2: Key Features of the DSCR Loan

• Visual: A split screen showing a property, a calculator, and a borrower signing documents.
• Voiceover:
  "Our DSCR loans are perfect for investment properties, including short-term rentals like Airbnb or VRBO. Here's what makes our program stand out:"
  • Text on Screen:
    • Low FICO Score Requirement: 620
    • LTV up to 85% for Purchase or Rate/Term
    • Short-Term Rental Income Allowed
    • Flexible Loan Options: Fixed, ARM, and Interest-Only

Scene 3: How to Close in 5 Days

• Visual: A checklist appears on screen with a borrower checking off items.
• Voiceover:
  "Want to close in 5 days? Here's what you'll need to make it happen:"
  • Checklist on Screen:
    • Transferred Appraisal – Must meet Champions Funding guidelines.
    • Complete Documentation – Submit all required documents upfront.
    • Fast Responses – Be ready to address any conditions immediately.
    • Pre-Underwriting Review – Ensure your file is complete before submission.

Scene 4: Call to Action

• Visual: A smiling loan officer sitting at a desk, ready to help.
• Voiceover:
  "Ready to get started? Contact us today to learn more about our DSCR loan programs and how you can close in just 5 days. Champions Funding—helping you invest smarter, faster, and better!"
• Text on Screen:
  • "Close in 5 Days with Champions Funding!"
  • "Call Now: [Insert Phone Number]"
  • "Visit: [Insert Website]"

Closing Scene:

• Visual: A happy investor holding keys to their new property.
• Voiceover:
  "Champions Funding—your partner in real estate success!"

Compliance Disclaimer (Text on Screen):

"Closing in 5 days is subject to complete documentation, appraisal transfer acceptance, and underwriting approval. Terms and conditions apply. Contact us for details."

Let me know if you'd like to tweak this script or add more details!

Comparison: Champions Funding vs. Newrez for Non-QM Loans

Who Can Close Quicker?

• Champions Funding is the clear winner for speed, with the ability to close DSCR loans in as little as 5 days if all conditions are met (e.g., transferred appraisal, complete documentation).
• Newrez does not specify expedited closing times, and their Non-QM loans typically take 30-45 days.

Who Has Better Rates?

• Both lenders offer competitive rates for Non-QM loans, but the actual rate depends on the borrower's credit profile, LTV, and loan program.
• Champions Funding focuses on underserved borrowers, which may result in slightly higher rates for riskier profiles.
• Newrez caters to experienced investors and may offer more favorable rates for high-credit, low-risk borrowers.

Recommendation

• Choose Champions Funding if you need a fast closing (e.g., 5 days for DSCR loans) or if you’re working with short-term rental income.
• Choose Newrez if you prioritize rate competitiveness and are not in a rush to close.

If you'd like more details about either lender's programs or need help deciding, let me know!