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Investing in Georgia Real Estate: A Guide for First-Time Investors

Feb 6, 2024

We will explore a non-QM solution offered by GeorgiaMortgage.com that allows borrowers to use gift funds on investment properties. We will delve into the specific case of a borrower with a 742 FICO score, 10% of their own funds, and gift funds from their parents. With a debt-to-income ratio of 52% and an LTV of 75%, this borrower meets all credit guidelines and owns their primary residence.

The DSCR Investment Product

Our DSCR (Debt Service Coverage Ratio) investment product is the perfect solution for borrowers like our first-time investors. This product enables borrowers to utilize gift funds on investment properties, providing them with the necessary financial tools to purchase an investment property using gift funds.

Minimum Investment Requirement

Before gift funds can be applied, the borrower must have a minimum investment of 10% of their own funds. In our case, the borrower has already met this requirement, as they possess 10% of the funds needed for closing costs, down payment, and reserves.

Rental Cash Flow Qualification

One of the unique aspects of our DSCR investment product is that it qualifies borrowers based on the cash flow of the subject property, rather than traditional employment income or debt-to-income ratios. This approach recognizes the potential of the investment property to generate income and allows borrowers with non-traditional income sources to participate in real estate investment.

Gift Funds from Parents

Our borrower has been fortunate enough to receive gift funds from their parents to cover the remaining funds required for closing costs, down payment, and reserves. Deephaven’s DSCR investment product acknowledges the importance of family support in real estate investment and allows borrowers to leverage gift funds from their loved ones.

Credit Guidelines and Other Considerations

In addition to meeting the minimum investment requirement and utilizing gift funds, our borrower satisfies all other credit guidelines. With a FICO score of 742, they demonstrate a strong credit history and financial responsibility. Furthermore, owning their primary residence showcases their experience in managing real estate assets.

Investing in Georgia real estate as a first-time investor may seem daunting, but with our DSCR investment product, it becomes an achievable goal. By allowing the use of gift funds on investment properties and considering the cash flow of the subject property. Contact us for more information regarding purchasing an investment property for the first time.