A&D Mortgage is excited to announce that they are now accepting short-term rental income for debt service coverage ratio (DSCR) loans. This new policy allows mortgage brokers to gain access to higher DSCR ratios and better loan-to-value (LTV) ratios of up to 80%, allowing their clients more favorable terms on loan applications. This comes as part of a larger effort by A&D Mortgage to provide industry-leading policies and services – making mortgage loans simpler, faster, and more accessible than ever before!
When calculating gross income for a short-term rent, 75% of the 12-month average rental income or 1007 can be considered.
Alternatively, if no actual rent is available, 75% of AirDNA rentalizer values may be used at the underwriter’s discretion.
A short-term rental addendum must be signed by the borrower as well as compliance with state and county regulations for short-term rentals.