“We’re extremely comfortable with the performance of our loans, the appetite of the secondary market, and the quality of our borrowers,” Serene Vernon, President of LoanStream Mortgage, added. “Not only are we going up to the 85%, but for what we call no ratio DSCR – and that’s where the borrower does not provide us a rental agreement for that property – we’re now going to an 80% loan to value. This puts us head and shoulders above the competition.”
Read more: LoanStream expands offering to fill non-QM void post-coronavirus
Asked why LoanStream had decided to introduce the program in the market now, he said that it was “a perfect time,” given the rise in property values and the high quality of the company’s borrowers.
He added: “We’re also watching some of the Wall Street firms getting into the non-owner or the property-owning space themselves and that adds credence to our position.”
He said, combined with its new $5,000,000 loan max amount, LoanStream was merely meeting the needs of borrowers, especially those located along the coasts where property values may be higher, including California, New Jersey, and South Florida.