DSCR
Start maximizing your real estate investment potential.
Focus on the property's cash flow
Flexible and accessible option for investors
Find the right financing solution for your investment goals
888-549-1005
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DSCR
Or Get a Free Rate Quote
1800-725-9946
Start maximizing your real estate investment potential.
Focus on the property's cash flow
Flexible and accessible option for investors
Find the right financing solution for your investment goals
888-549-1005
Call for a Free Mortgage Saving Report
No Credit Checks Required
Get Approved for a DSCR Loan — Easy Financing for Real Estate Investors Without Income Verification!
No Personal Income Verification Needed: — Approval based on the property’s cash flow, not your income or tax returns.
Perfect for Real Estate Investors: — Grow your rental portfolio with fast and flexible financing.
Competitive Interest Rates: — We secure the best possible rates to maximize your rental income and ROI.
Fast Pre-Approval Process: — Move quickly on investment properties with our streamlined approval.
Flexible Loan Programs: — Designed to fit your investment strategy and long-term goals.
Low Closing Costs & No Hidden Fees: — Full transparency to help you keep more of your profits.
Get a Free Mortgage Saving Report
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Start with our Mortgage Approval Tool!
Start with our Mortgage Approval Tool!
Home Purchase
Buying a home is a major investment,
requiring planning, budgeting, and research to secure the perfect property for long-term stability.
Home Refinance
Home refinancing replaces an existing mortgage with a new loan, often to lower interest rates, reduce payments, or access home equity.
Home Equity
Home equity is the property's market value minus any outstanding mortgage balance, allowing homeowners to borrow against their ownership stake.
Reverse
A reverse mortgage allows homeowners, typically seniors, to convert home equity into cash without monthly payments, repaid when they move or sell.
Start with our Mortgage Approval Tool!
Our Service Commitment
No Hidden Fees: We believe in clear and upfront communication about all costs associated with your mortgage.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Get Expert Advise, every time from a licensed loan officer with a suite of products to choose from.
Our Team strives to deliver excellence, reach us day or night about any of your mortgage questions, we’re here for you when you need.
Working with us or just thinking of it, we will always be honest and transparent. No sales targets means way better service!
Our Service Commitment
Get Expert Advise, every time from a licensed loan officer with a suite of products to choose from.
Our Team strives to deliver excellence, reach us day or night about any of your mortgage questions, we’re here for you when you need.
Working with us or just thinking of it, we will always be honest and transparent. No sales targets means way better service!
No Hidden Fees: We believe in clear and upfront communication about all costs associated with your mortgage.
Tailored Solutions: Our advisors work closely with you to find mortgage solutions that are customized to your financial situation.
Available When & Where You Want!
Across multiple states our Licensed Loan officers will help you from the application to the funding and beyond.
We work on your schedule, with streamlined technology and support staffing, your mortgage request will always be a priority!
Largest Lender Network in Florida, Georgia & Texas
Available When & Where You Want!
Across multiple states our Licensed Loan officers will help you from the application to the funding and beyond.
We work on your schedule, with streamlined technology and support staffing, your mortgage request will always be a priority!
Book an Appointment
Book an Appointment
Meet Our Team
Angle Ogbele
Natasha Staplowski
Darnell Smith
Arlan Zuberi
Meet Our Team
Angle Ogbele
Natasha Staplowski
Darnell Smith
Arlan Zuberi
What is DSCR?
A Debt Service Coverage Ratio (DSCR) loan is a type of commercial real estate loan where the lender evaluates the cash flow of the income-generating property to determine the borrower's ability to repay the loan. Instead of focusing primarily on the personal income and credit history of the borrower, the DSCR loan looks at the expected income the property will produce and whether it will be sufficient to cover the loan payments.
The DSCR is calculated by dividing the property's annual net operating income by the annual mortgage debt service (principal and interest payments). For example, if a property generates $120,000 in net operating income annually and the annual mortgage debt service is $100,000, the DSCR would be 1.2 ($120,000 / $100,000 = 1.2).
How Does DSCR Works?
Sufficient DSCR: The primary requirement is that the property's net operating income (NOI) must cover the mortgage debt service by a certain ratio. Lenders usually look for a DSCR of 1.20x or higher, meaning the NOI should be at least 20% greater than the debt service.
Property Appraisal: The lender will require an appraisal to determine the property's value and its capacity to generate income.
Down Payment: A larger down payment is often required for DSCR loans compared to traditional residential mortgages. This could be anywhere from 20-30% or more, depending on the lender's criteria.
Credit Score: While the property's income is the focus, a good credit score can still be important. Some lenders may have minimum credit score requirements, though these can be more flexible than for traditional loans.
Reserves: Lenders may require the borrower to have a certain amount of cash reserves on hand to cover potential vacancies or maintenance issues.
Property Type: DSCR loans can be used for various types of properties, including single-family rentals, multi-family dwellings, mixed-use buildings, and commercial properties. The lender will assess the property type and its income-generating potential.
Loan-to-Value (LTV) Ratio: The LTV ratio is another factor lenders consider. A lower LTV means more equity in the property and can be a favorable point in qualifying for a DSCR loan.
Business Plan: For commercial properties, a lender may require a solid business plan that shows how the property will generate income.
Experience: Some lenders may prefer borrowers with experience in managing rental or commercial properties, although this is not always a requirement.
Legal and Compliance Checks: As with any loan, there will be a need to ensure that the property complies with local zoning and building codes and that there are no legal encumbrances that would impact the lender's security interest in the property.
Each lender may have their own specific requirements and underwriting criteria, so it's important to check with potential lenders to understand their particular process for obtaining a DSCR loan.
What is DSCR?
A Debt Service Coverage Ratio (DSCR) loan is a type of commercial real estate loan where the lender evaluates the cash flow of the income-generating property to determine the borrower's ability to repay the loan. Instead of focusing primarily on the personal income and credit history of the borrower, the DSCR loan looks at the expected income the property will produce and whether it will be sufficient to cover the loan payments.
The DSCR is calculated by dividing the property's annual net operating income by the annual mortgage debt service (principal and interest payments). For example, if a property generates $120,000 in net operating income annually and the annual mortgage debt service is $100,000, the DSCR would be 1.2 ($120,000 / $100,000 = 1.2).
How Does a DSCR Loans Works?
Sufficient DSCR
The primary requirement is that the property's net operating income (NOI) must cover the mortgage debt service by a certain ratio. Lenders usually look for a DSCR of 1.20x or higher, meaning the NOI should be at least 20% greater than the debt service.
Property Appraisal
The lender will require an appraisal to determine the property's value and its capacity to generate income.
Down Payment
A larger down payment is often required for DSCR loans compared to traditional residential mortgages. This could be anywhere from 20-30% or more, depending on the lender's criteria.
Credit Score
While the property's income is the focus, a good credit score can still be important. Some lenders may have minimum credit score requirements, though these can be more flexible than for traditional loans.
Reserves
Lenders may require the borrower to have a certain amount of cash reserves on hand to cover potential vacancies or maintenance issues.
Property Type
DSCR loans can be used for various types of properties, including single-family rentals, multi-family dwellings, mixed-use buildings, and commercial properties. The lender will assess the property type and its income-generating potential.
Loan-to-Value (LTV) Ratio:
The LTV ratio is another factor lenders consider. A lower LTV means more equity in the property and can be a favorable point in qualifying for a DSCR loan.
Business Plan
For commercial properties, a lender may require a solid business plan that shows how the property will generate income.
Experience
Some lenders may prefer borrowers with experience in managing rental or commercial properties, although this is not always a requirement.
Legal and Compliance Checks
As with any loan, there will be a need to ensure that the property complies with local zoning and building codes and that there are no legal encumbrances that would impact the lender's security interest in the property.
Benefits of DSCR
Income-Based Lending: The loan approval is based on the cash flow generated by the property, not the personal income of the borrower.
Minimal Emphasis on Personal Finances: Personal income verification is often not required, and the borrower's credit score may have less impact on the loan decision than with traditional loans.
Property as Collateral: The loan is secured by the commercial property, and the lender focuses on the property's ability to generate sufficient income to cover the debt payments.
DSCR Calculation: Lenders calculate DSCR by dividing the property's Net Operating Income (NOI) by the annual debt obligations. A DSCR of 1.0 means the NOI is equal to the debt service, while lenders look for a DSCR greater than 1.20.
Flexible Loan Terms: DSCR loans may offer a variety of terms, including fixed or adjustable interest rates and different amortization schedules.
Higher Interest Rates: Interest rates for DSCR loans may be higher than traditional commercial loans due to the perceived higher risk associated with not considering the borrower's personal income.
Larger Down Payment: Borrowers often need to make a larger down payment, sometimes 25-30% or more, depending on the lender's requirements and the property's cash flow.
Prepayment Penalties: There may be prepayment penalties, especially if the loan has a fixed rate, as lenders expect a certain return on their investment.
Non-Recourse Financing: Some DSCR loans may be non-recourse, meaning the lender's recovery in the event of default is limited to the property itself, without going after the borrower's other assets.
Loan Size and Term: DSCR loans can vary in size and term, potentially offering more flexibility than traditional commercial loans depending on the lender and the property in question.
Benefits of DSCR
Income-Based Lending
The loan approval is based on the cash flow generated by the property, not the personal income of the borrower.
Minimal Emphasis on Personal Finances
Personal income verification is often not required, and the borrower's credit score may have less impact on the loan decision than with traditional loans.
Property as Collateral
The loan is secured by the commercial property, and the lender focuses on the property's ability to generate sufficient income to cover the debt payments.
DSCR Calculation
Lenders calculate DSCR by dividing the property's Net Operating Income (NOI) by the annual debt obligations. A DSCR of 1.0 means the NOI is equal to the debt service, while lenders look for a DSCR greater than 1.20.
Flexible Loan Terms
DSCR loans may offer a variety of terms, including fixed or adjustable interest rates and different amortization schedules.
Higher Interest Rates
Interest rates for DSCR loans may be higher than traditional commercial loans due to the perceived higher risk associated with not considering the borrower's personal income.
Larger Down Payment
Borrowers often need to make a larger down payment, sometimes 25-30% or more, depending on the lender's requirements and the property's cash flow.
Prepayment Penalties
There may be prepayment penalties, especially if the loan has a fixed rate, as lenders expect a certain return on their investment.
Non-Recourse Financing
Some DSCR loans may be non-recourse, meaning the lender's recovery in the event of default is limited to the property itself, without going after the borrower's other assets.
Loan Size and Term
DSCR loans can vary in size and term, potentially offering more flexibility than traditional commercial loans depending on the lender and the property in question.
Features of DSCR
Focus on Property Income: The main criterion for a DSCR loan is the income generated by the property, which means personal income and credit history are less scrutinized. This can be advantageous for investors who have complex financial situations or fluctuating personal incomes.
Potential for No Income Verification: Since the loan is underwritten based on the property's cash flow, there may be no need for traditional income verification, which can simplify the application process for self-employed individuals or those with non-traditional income sources.
Higher Loan Amounts: DSCR loans can offer access to financing for more expensive properties that exceed conventional loan limits, which can be particularly useful in high-cost real estate markets.3
Flexibility for Multiple Properties: Investors with multiple properties can benefit from DSCR loans, as they allow for the consideration of each property on its own merits, rather than aggregating the debt across all properties owned by the borrower.
Non-Recourse Options: Some DSCR loans may be non-recourse, which means the lender's recovery in the event of default is limited to the property itself, and personal assets are not at risk.
Interest-Only Payment Options: Certain DSCR loans may offer interest-only payment periods, which can reduce the monthly payment amount and improve short-term cash flow for the borrower.
Longer Amortization Periods: These loans can have longer amortization periods, which can lower the monthly payments and make it easier to manage cash flow.
Potential Tax Benefits: The interest on the mortgage may be tax-deductible, and investors can also potentially benefit from depreciation and other real estate-related deductions.
Asset-Based Lending: For investors looking to grow their portfolios without being limited by their personal debt-to-income ratio, DSCR loans provide an opportunity to leverage the property's income potential.
Streamlined Financing for Investors: Investors looking to quickly close on a property may find that DSCR loans can offer a more streamlined process compared to traditional loans, especially if they have a strong DSCR ratio and the property is in good condition.
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Features of DSCR
Focus on Property Income
The main criterion for a DSCR loan is the income generated by the property, which means personal income and credit history are less scrutinized. This can be advantageous for investors who have complex financial situations or fluctuating personal incomes.
Potential for No Income Verification
Since the loan is underwritten based on the property's cash flow, there may be no need for traditional income verification, which can simplify the application process for self-employed individuals or those with non-traditional income sources.
Higher Loan Amounts
DSCR loans can offer access to financing for more expensive properties that exceed conventional loan limits, which can be particularly useful in high-cost real estate markets.3
Flexibility for Multiple Properties
Investors with multiple properties can benefit from DSCR loans, as they allow for the consideration of each property on its own merits, rather than aggregating the debt across all properties owned by the borrower.
Non-Recourse Options
Some DSCR loans may be non-recourse, which means the lender's recovery in the event of default is limited to the property itself, and personal assets are not at risk.
Interest-Only Payment Options
Certain DSCR loans may offer interest-only payment periods, which can reduce the monthly payment amount and improve short-term cash flow for the borrower.
Longer Amortization Periods
These loans can have longer amortization periods, which can lower the monthly payments and make it easier to manage cash flow.
Potential Tax Benefits
The interest on the mortgage may be tax-deductible, and investors can also potentially benefit from depreciation and other real estate-related deductions.
Asset-Based Lending
For investors looking to grow their portfolios without being limited by their personal debt-to-income ratio, DSCR loans provide an opportunity to leverage the property's income potential.
Streamlined Financing for Investors
Investors looking to quickly close on a property may find that DSCR loans can offer a more streamlined process compared to traditional loans, especially if they have a strong DSCR ratio and the property is in good condition.
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