Debt-Service Coverage Ratio (DSCR) Loans
Getting you the mortgage you deserve
DSCR Loan :
The debt service coverage ratio (DSCR), known as “debt coverage ratio” (DCR), is the ratio of operating income available to debt servicing for interest, principal and lease payments. It is a popular benchmark used in the measurement of an entity’s (person or corporation) ability to produce enough cash to cover its debt (including lease) payments. The higher this ratio is, the easier it is to obtain a loan.
Benefits of a DSCR Loan
• Personal income is not taken into account by DSCR lenders.
• They have quicker application and closure times.
• You can commit to many properties simultaneously.
• Unlimited Cash-Out.
• Ideal for both novice and seasoned real estate investors
How Does a DSCR Loan Work?
Because real estate investors write off expenses on their properties, some may not qualify for a conventional loan. The debt service coverage ratio loan allows these individuals to qualify more easily because they don’t require proof of income via tax returns or pay stubs that investors either don’t have or that don’t represent their true income due to write-offs and business deductions.
DSCR Program Requirements
The requirements to qualify for the DSCR program are as follows :
• Personal income is not taken into account by DSCR lenders.
• They have quicker application and closure times.
• You can commit to many properties simultaneously.
• Unlimited Cash-Out.
• Ideal for both novice and seasoned real estate investors
