DSCR Loans
Debt Service Coverage Ratio (DSCR) loans permit borrowers to use the cash flow that is generated from investment properties to qualify for a mortgage. This loan is best for financial consumers and real estate investors by allowing them extra protection to handle their transaction.
Intro to DSCR Loans
Loan Vault is all about using money to make money, and the DSCR loan is just for that. We help walk you through how using other properties can allow you to purchase new ones and continue to grow your investment portfolio. Contact us today so we can help you apply for this loan today.
What is a DSCR loan?
A DSCR loan allows lenders to use the debt service coverage ratio to determine a borrower’s eligibility to receive the loan. With this type of loan there is no need to verify income or an approval process. This loan is not used to purchase a residential property for personal use. There is no limit to how many DSCR loans you can take out, so it is ideal for building a larger investment portfolio quickly. Lenders usually require a higher down payment for this loan rather than traditional mortgage loans, so this is a great option if your investment properties make up the majority of your income stream.
Is a DSCR Loan Right For You?
Requirements to keep in mind when considering a DSCR loan:
- DSCR ratio higher than 1.0 (no ratio and ≤ 1.0 programs available with compensating factors)
- Typically credit scores over 640