DSCR LOANS - Ideal for loans for investments ranging from $100,000 to $4,000,000

DSCR loans have many benefits to investors including the ability to have as many DSCR loans as you like without impacting your personal financial records. This allows for unlimited growth of your investment portfolio.

A few key facts about the DSCR loans:

  • The DSCR loans do not require verification of your employment, income, tax returns and other personal financial information.

  • The loans do not consider your Debt-to-Income ratio like conventional loans.

  • Most loans are 30 year terms.

  • As long as the property is profitable the lender will consider this above all else.

  • This is not a hard money loan. Rates can be in the 6% - 8%.

  • You can add a construction loan to your DSCR on the front end to improve your property and then convert to a DSCR loan. This is a construction bridge for a short-term period at a higher rate then convert to a 30 year loan.

What do lenders evaluate to approve a DSCR loan:

  • Your credit score (FICO) will be a consideration to get this loan. A higher FICO score will result in a better interest rate and less down payment.

  • The property income needs to be profitable after the loan costs. This is to protect you and the lender.

  • Your experience will help to ensure your loan approval. New investors can bet a DSCR loan but the lenders will want you to start out with a single family rental property and move up to larger properties.

What is the underwriting like:

  • Underwriting is still underwriting. Anything that appears on your credit report will be confirmed to validate you have paid things on time.

  • You will need to have an LLC in Good Standing in your state.