DSCR Debt Service Coverage Ratio

What is a DSCR loan?

Quite simply this is a type of loan where the leases, existing or future leases, will base as the income to qualify for the loan.

Since most investors use this type of a loan, they require minimal documentation from the borrower since the property is an Income Producing type of investment.

Lenders, and most investors, look for a qualifying ratio of 1.25. Meaning that for every$1 spent, there should be at least $1.25 coming in. This will insure the mortgage is paid and that there is sufficient cashflow.

What are the Requirements?

We have lenders still offering 15% Down Payment

6 months Reserves for each property owned and financed

1007 Appraisal using rental income

Lease agreements

FICO 660

Does it take longer to close?

Personally, I have done closings in as little as 3 weeks