What is a DSCR Loan?
A DSCR (debt service coverage ratio) is calculated when qualifying a borrower. When this is calculated, it lets the lender know if the investment will generate enough cash flow to cover the proposed debt amount. In short, the higher the ratio, the less risky the loan is viewed from both an investing and lending perspective. Some lenders may have ratio requirements that the investment property must meet.
Who is a DSCR Loan for?
While anyone can apply, this loan is most popular among real estate investors since you qualify based on your properties cash flow rather than personal income.
Benefits of a DSCR Loan
- Personal income calculation is not required
- Closing times are generally quicker
- DSCR allows you to separate your personal and business affairs
- Requires a lower down payment compared to other investment loan options
- Loan amounts up to $3 million
- Min FICO at 620
- No max cash in hand
What is the Next Step?
Altitude Mortgage Group LLC is here to help, whatever your circumstances. If a DSCR Loan is something you are interested in, contact us to discuss how we can help you get the most out of this opportunity.
