Unlock Your Investment Potential with a DSCR Loan!
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Frequently asked DSCR questions
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What is a DSCR loan?
A DSCR loan is a type of mortgage that qualifies borrowers based on the cash flow generated by the property rather than their personal income.
How is the DSCR calculated?
The DSCR is calculated by dividing the property’s net operating income (NOI) by its debt obligations. A DSCR of 1.0 means the property generates enough income to cover its debt payments.
What is the minimum DSCR required to qualify for a loan?
Most lenders require a DSCR of at least 1.25, but this can vary depending on the lender and the specific loan program
Can I get a DSCR loan if I am not a U.S. citizen?
Yes, some lenders offer DSCR loans to foreign nationals, though there may be additional requirements such as higher reserves or lower loan-to-value (LTV) ratios
What types of properties can be financed with a DSCR loan?
DSCR loans can be used for various types of investment properties, including single-family homes, multi-family properties, and commercial real estate
Do DSCR loans require personal income verification?
No, DSCR loans typically do not require personal income verification, making them ideal for investors who may not have traditional income documentation
What is the typical loan-to-value (LTV) ratio for DSCR loans?
The maximum LTV for DSCR loans is usually around 75-80%, but this can vary by lender
Are there any reserve requirements for DSCR loans?
Yes, lenders often require reserves, which are liquid assets that can cover several months of mortgage payments. The exact amount can vary but is typically around six months of payments
Can I use a DSCR loan for short-term rental properties?
Yes, many lenders allow DSCR loans for short-term rental properties, though they may have specific requirements or restrictions
What are the benefits of a DSCR loan?
DSCR loans offer flexibility, no personal income verification, and the ability to qualify based on property income, making them attractive for real estate investors
Find the perfect loan for you.
There are various types of mortgage options available, and taking a few minutes to explore your options can be beneficial. Understanding the different types of home loans can help you determine which one offers the best fit for your needs. Don’t worry, we’re here to guide you through the process and help you select the most suitable loan option. But first, take some time to review and compare your options to get an idea of what works best for you.
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With the right home loan, you can refinance or buy a home and keep your financial plans on track
Gov. Insured Loans
Attractive loan terms
Government-insured mortgages, also known as government-backed mortgages, are home loans that are insured or guaranteed by a federal agency. These loans are designed to help specific groups of people, such as first-time homebuyers, veterans, and those in rural areas, by reducing the risk for lenders.
0%
Down Payment
580+
Credit Score
Conventional loans
Different term options available
A government program doesn’t directly back a conventional mortgage loan. Most of these loans are also “conforming,” meaning they adhere to the standards set by Fannie Mae or Freddie Mac. These two government-sponsored entities buy mortgages from lenders and then sell them to investors.
3%
Dow payment
680+
Credit Score
Non-Qualified Mortgage
Good option for investors
Non-QM (Non-Qualified Mortgage) loans are home loans that don’t meet the strict criteria set by the Consumer Financial Protection Bureau (CFPB) for qualified mortgages. These loans are designed for borrowers who may not fit the traditional lending requirements but still have the financial means to repay a mortgage.
