
Welcome to our wholesale services
This page is designed to promote transparency and process efficiency. It gives you control over pricing and streamlines the process, ensuring a smoother experience for all parties involved.
Single Asset Wholesale
Services Coverage Loan DSCR
Essencap provides DSCR (Debt Service Coverage Ratio) loans for business purposes, primarily tailored for real estate investment. These loans are particularly suited for residential investment properties with 1 to 9 units.
DSCR loans assess a property's capacity to generate rental income sufficient to cover its debt obligations. The ratio is calculated by dividing the property's gross operating income by its total debt service, which includes mortgage payments, real estate taxes, insurance, and homeowners association fees.
Essencap offers DSCR options at 1.25, 1.0, and 0.75. The 0.75 option is available only for rate and term refinancing and property purchases.
Onbroading
Once you've agreed on pricing, please give your borrower's name and the property location to your account representative. They will then create a processing link for you and guide you through each step of the process. This procedure follows the same requirements as our online system.
We recommend to lock rate after credit is pulled and appraisal report is returned. Free rate lock for 30 days.
General DSCR Loan Process Instruction
1. Please fill out attached Loan Application Form & Credit authorization
2. Copy of ID and Social Security Card (Driver License preferable)
a. For Permanent Resident, please provide copy green card or passport.
b. Foreign national please provide travel visa.
3. Provide leases
a. Provide 3 Month Rent Proof with Bank Statement, or Payment App (no print screen)
4. If this is purchase, please provide purchase contract.
5. If this is a refinancing,
a. Provide most recent mortgage statement.
b. Will need a payoff letter at the time of closing.
c. Sign the verification of mortgage
6. Primary resident
a. Provide primary house mortgage statement
b. A copy of the Homeowners insurance for the primary residence
7. If the property is part of HOA association
a. Questionnaire will require
b. Confirm number of units sold, % of ownership.
c. Most recent HOA statement
d. Master insurance
8. Most recent real estate tax statement of the subject property
9. Most recent 3 month bank statement (down payment proof, and liquidity)
a. Bank statement to show the initial deposit transfer.
10. Please order appraisal report with designate appraisal company. The appraisal report needs to be under the name of Essencap Funding LLC. You can set up an account with the appraisal company on the right.
a. A USPAP and FIRREA compliant appraisal will be required for all parcels.
b. SFR properties require a 1004 appraisal with a 1007 comparable rent schedule
c. Duplex, triplex, and fourplex properties require a 1025 appraisal form
d. Condos require a 1073 appraisal form
e. Collateral Desktop Analysis (CDA) from www.clearcapital.com.
11. If the property under an entity, please provide state registration, certificate of good standing, corporation document, IRS Letter of EIN, when is applicable Proof of publication.
a. We do accept personal name investment property.
12. Please order title, or Essencap can order.
a. Mortgagee clause is Essencap Funding LLC ISAOA/ATIMA. 1 Barstow Rd Suite P6, Great Neck, NY 11021
b. Make sure the effective is within 30 days of closing.
c. Make sure the title has signature.
d. Request Agent Closing Letter with AAL number (agent reference number)
e. CC&R search
f. Bkcy, Patriot Act/ UCC search (State/Cunty) against the shareholders/members of the entities.
g. Loan Detail
i. Loan #
ii. Loan amount $
iii. Purchaser is in entity name:
h. 24 month Chain of Title, Judgement/ Lien Search on entity and guarantors and OFAC Search
i. Endorsements: Alta 8, 9, 14 (if there is holdback), 17, survey endorsement, mechanic’s lien coverage, gap coverage
j. The lender will not accept an ALTA Short Form policy
k. For HOA related, please provide HOA Bylaws and Master Insurance Policy
l. Please provide title company signer information, not closer. We will provide closing instruction, need to know name, email, and phone # for the person, who handle the deed record…
m. Please provide prelim title bill, please take in account the initial deposit.
n. Required Search: OFAC, Bankruptcy, Judgements/Liens, Flood
o. Tax Certificate
p. Municipal search
13. Insurance
a. Please provide evidence of insurance, which should include annual premium, ISAOA clause, six months of rental loss, and coverage equal to the loan amount or 100% replacement cost, liability insurance of $500,000
i. For bridge loan skip the six-month rental loss requirement.
ii. If the dwelling can not cover loan amount, please offer replacement cost calculation.
b. Insurance must be billed on an annual basis and paid in full at close.
c. Please make sure the binder has the policy number
d. Please add Essencap Funding LLC ISAOA/ATIMA, 1 Barstow Rd Suite P6, Great Neck, NY 11021, 888-269-1033 wecare@essecancp.com for the mortgagee clause.
e. Loan number #
f. Loan amount $