Tag Archive for: DSCR

How to Get a DSCR Loan in Three Quick and Easy Steps

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Today we are going to discuss how to get a DSCR loan in three quick and easy steps. Getting a DSCR loan doesn’t have to be complicated. In fact, with the right approach, you can close your loan quickly and start cash flowing from your investment property.

If you’re ready to secure funding without worrying about personal income requirements, follow these three simple steps.

Step 1: Get Your Numbers Ready

Lenders don’t ask for pay stubs or tax returns for a DSCR loan. Instead, they focus on your property’s income. That means you need to gather the right numbers before applying.

Here’s what you need:

  • Expected Rent Income – Find out how much rent your property can bring in each month. A lease agreement or a rental appraisal from a property manager can help.
  • Monthly Expenses – Lenders look at costs like mortgage payments, taxes, insurance, and HOA fees.
  • Loan Terms You Want – Decide whether you prefer a 30-year, 40-year, or interest-only loan.

Example: Sarah owns a rental property that earns $2,000 per month. Her monthly expenses, including mortgage and taxes, add up to $1,600. Since her rent covers her costs, she has a strong DSCR ratio, which makes her loan approval much easier.

Step 2: Find the Right DSCR Lender

Not all lenders offer DSCR loans, and those that do may have different requirements. You’ll want to shop around and compare terms.

Look for lenders who:

Example: Mark applied for a DSCR loan at his local bank, but they required personal income documents. He switched to a lender that focused on rental property loans and got approved in days—without personal income verification!

Step 3: Apply and Close Your Loan

Once you’ve gathered your numbers and chosen the right lender, it’s time to apply. Most DSCR loan applications require:

  • A completed loan application
  • A property appraisal
  • Proof of rent income (like a lease or appraisal report)

After you apply, the lender will review your numbers, order an appraisal, and finalize your loan. This process usually takes 2-4 weeksExample: Lisa submitted her DSCR loan application with all the needed documents. Because she had her numbers ready and worked with an experienced lender, she closed in just three weeks.

Get Your DSCR Loan Today!

By following these three easy steps—preparing your numbers, finding the right lender, and applying—you’ll be on your way to securing a DSCR loan fast.

Do you need more info on how to get a DSCR loan in three quick and easy steps? Contact us today to find out more! 

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Purchase a Multi-Unit Property with a DSCR

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Are you considering buying a multi-unit property, like an apartment building, but want to avoid the hassle of personal income verification? A Debt Service Coverage Ratio (DSCR) loan could be the solution for you. Today we will be discussing how using a DSCR loan to purchase a multi-unit property can get you on the right track! 

What is a DSCR Loan?

A DSCR loan is a type of financing that focuses on the income of the property you’re buying rather than your personal income. It’s perfect for investors who want to streamline the process, especially if their personal financials aren’t ideal. With DSCR loans, lenders look at the property’s cash flow compared to its expenses. If the property brings in enough income, you’re good to go!

Example:

If your property expenses are $1,000 per month, your rental income should be at least $1,200 to meet the typical DSCR of 1.2. That means your income is 120% of your expenses.

Can You Use a DSCR Loan for Multi-Unit Properties?

Yes! While DSCR loans are often associated with single-family homes or duplexes, they can also be used for multi-family buildings with five or more units. Whether you’re looking at a small apartment building or a larger complex, the loan works the same way, focusing on the property’s income.

However, keep in mind that for commercial properties like this, there are a few differences:

  • Loan Size: For multi-unit properties, DSCR loans typically start at around $1 million. If you’re looking for something smaller, this might not be the best option.
  • Loan Terms: You can expect shorter fixed-rate periods, such as 5 or 7 years. After that, the loan either adjusts or you’ll need to refinance.

What Do Lenders Look For?

To qualify for a DSCR loan on a multi-unit property, lenders usually have a few specific requirements:

  1. Minimum Property Value: The property should be worth at least $50,000 per unit. If you’re looking at a 20-unit building, that means the building’s value should be at least $1 million.
  2. Occupancy Rates: Most lenders require that 75% to 90% of the units are rented. This ensures the property is already generating income.
  3. Cash Flow: As with all DSCR loans, the property’s income should be at least 1.2 times higher than its expenses.

Example:

If you’re buying a 10-unit apartment building with each unit worth $50,000, you’re looking at a $500,000 loan. If your total expenses for the property are $5,000 per month, your rental income should be at least $6,000 to meet the 1.2 DSCR requirement.

Benefits of DSCR Loans for Multi-Unit Properties

There are a few key reasons why DSCR loans are popular for multi-unit properties:

  • No Personal Income Verification: Since the loan is based on the property’s income, you don’t need to provide personal tax returns or income statements.
  • Non-Recourse: Many DSCR loans are non-recourse, meaning you’re not personally liable if something goes wrong. The lender can’t come after your personal assets.
  • Simplified Process: The DSCR loan process is straightforward. You won’t need to deal with the endless paperwork typical of traditional loans.

When Is a DSCR Loan NOT the Best Option?

While DSCR loans are fantastic for stabilized properties, they’re not always the best choice if you’re planning a value-add or major renovation project. Most DSCR loans require a high occupancy rate, so if you’re buying a property with a lot of vacancies or under-market rents, you might have trouble meeting the 1.2 DSCR.

Example:

If you’re buying a property that only has 50% of the units rented and you’re planning to renovate the rest, this loan might not be for you. You would need to bring up the occupancy and rental income before it qualifies.

Can You Use a DSCR Loan for a Portfolio?

Absolutely! DSCR loans aren’t just for individual properties. If you have multiple single-family homes or other properties, you can bundle them under one loan. The main requirement is that each property must meet the minimum value and occupancy thresholds.

Ready to Learn More?

A DSCR loan can be a powerful tool for purchasing multi-unit properties. By using a DSCR loan to purchase a multi-unit property you can get yourself set up for success! If you have any questions or want to explore your options, reach out to us. We’re happy to help you find the right financing for your next investment.

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How to Get a Mortgage When You’re Self-Employed

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Today we are sharing an article that discusses how to get a mortgage when you’re self-employed. Here are 8 key steps to help prepare for the process in order to get the best deal on your home loan:

1. Check if You’re Considered “Self-Employed”

To clarify, in the mortgage world, self-employed means you don’t get a W-2 from an employer. 

  • A small business owner, freelancer, contractor, or gig worker
  • Receiving income primarily through 1099 forms

2. Calculate Income and Affordability

Lenders will look at tax returns, bank statements, as well as business profit-and-loss reports to determine your income. Next, lenders will calculate your debt-to-income (DTI) ratio. 

3. Prep Credit and Savings

Boosting your credit score, as well as saving up a bigger down payment, can improve your chances of qualifying for a loan. It also can result in getting better rates. Therefore having at least a 620 credit score, or higher is ideal. A down payment of 20% is a good target.

4. Find the Right Lender and Loan Program

You have several loan options, including:

  • Conventional loans: Low down payment, but stricter income verification.
  • FHA loans: Good for lower credit scores, require 3.5% down.
  • Non-QM loans: For those who take significant tax write-offs or have fluctuating income. Examples include Bank Statement Loans and DSCR Loans.

5. Gather Documents

Self-employed borrowers need more paperwork than W-2 earners. Be ready with:

  • 2-3 years of tax returns and business statements
  • Bank statements (personal and business)
  • Profit and loss reports
  • Business licenses, credit card and loan statements

6. Get Pre-approved

This gives you an idea of how much you can borrow and shows sellers you’re serious.

7. Lock in Your Rate

After finding a home and signing a contract, apply for your mortgage in order to lock in your rate to protect against increases during the underwriting process.

8. Close on Your Loan

At closing, you’ll sign your paperwork, pay your down payment, and receive the keys to your home.

 

Click here to read the rest of the article.

We are here to help you! Contact us today to see if a DSCR loan is best for you!

 

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How to Get a Business Loan with No Money

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Today we are going to look at an article that discuses how to get a business loan with no money. Getting a business loan with no money upfront can be tough, but it’s not impossible. Some lenders focus on your business’s potential, even if you don’t have cash in hand. Microloans, business credit cards, and equipment loans are all options that may help.

For example, microloans like those from Kiva can provide small loans without interest. Business credit cards allow you to cover short-term expenses without upfront cash, while equipment loans let you borrow for specific business tools using the equipment itself as collateral.

There are also alternative ways to get funding. Angel investors and venture capitalists may invest in your business in exchange for equity. You can also try crowdfunding, which lets others contribute to your business in small amounts.

Whatever option you choose, make sure you have a solid plan to repay the loan. Many lenders need to see how your business will handle the payments, especially if revenue isn’t flowing yet.

Getting a loan without money can help you start or grow your business. Just be sure to understand the costs and have a clear plan to make it work!

Click here to see the entire article.

Do you have more questions regarding how to get a business loan with no money? Contact us today!

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How to Get a Business Loan in 6 Steps

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Today we are going to discuss an article that shows you how to get a business loan in 6 steps. Getting a business loan starts with picking the right loan for your needs. Whether you’re looking to buy equipment, restock inventory, or cover a gap in revenue, there’s a loan out there for you. Take time to compare different options, like long-term loans, SBA loans, or lines of credit.

Next, figure out how much you can afford. A good rule of thumb is to make sure your business’s cash flow can comfortably handle loan repayments. Lenders often use a formula called DSCR to see if your business is in good shape to repay the loan. A DSCR of 1.25 or higher shows strength.

After that, check if you qualify. Lenders look at factors like time in business, credit score, and annual revenue. For instance, many banks want businesses with two years of operations and a strong credit score. However, some online lenders are more flexible.

Once you’ve gathered your required documents—like financial statements, business plans, and legal paperwork—it’s time to apply. Some lenders have quick online applications, while others might ask for more detailed information.

Finally, after applying, be prepared to wait. Online lenders might fund you within a few days, while SBA loans can take much longer. If you’re denied, don’t get discouraged—find out why, make improvements, and try again.

With these six steps, you’re ready to confidently apply for a loan that best suits your business.

Click here to read the entire article.

Contact us today if you have more questions regarding how to get a business loan in 6 steps.

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Keep an Eye Out: DSCR Loan under an LLC

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How to Get Better Rates and Terms with Your DSCR Loan

Today we are going to discuss some things to keep an eye out for when applying for a DSCR loan under and LLC. Plus, we’ll share some tips on avoiding common pitfalls investors face when dealing with DSCR loans and LLCs. When you’re looking into a DSCR loan for your investment property, there are a few things you need to watch out for, especially if you’re holding the property under an LLC. Even small details, like who’s involved in your LLC, can make a big difference in your loan’s rate and terms. 

The Importance of LLC Ownership and DSCR Loans

Owning your property under an LLC is great for DSCR loans, but you must be mindful of who is involved. In one case, a client who thought he was all set to get a great loan suddenly hit a major roadblock.

It turned out his partner owned 40% of the LLC, and the lender needed to consider the partner’s credit. Unfortunately, the partner’s score was even lower than the client’s, causing the rate to increase again.

Why does this happen? Lenders often require the credit checks of all LLC owners who hold a certain percentage of the company. In many cases, anyone owning 5% or more will have their credit checked. That means if someone in your LLC has a low score, it can drag down your chances of securing good loan terms.

How to Improve Your LLC for Better Rates and Terms

To avoid these issues, you need to carefully consider who is part of your LLC. Here are a few tips:

  • Check everyone’s credit before applying for a DSCR loan. If someone has a low score, it could hurt your chances.
  • Talk to your lender upfront. They can let you know if you’ll need to provide credit checks for all LLC members.
  • Consider adjusting ownership. If one member’s credit is a problem, you could temporarily remove them from the LLC while securing the loan. This process can take time, but it may help you secure a better deal.

In Conclusion

Securing a DSCR loan while using an LLC can offer great benefits, but it’s important to pay attention to the details, especially when it comes to ownership and credit scores. By keeping an eye on your credit usage, checking your LLC partners’ credit, and talking to your lender upfront, you can avoid surprises and get the best possible rates and terms. With the right approach, you’ll set yourself up for success on your investment journey! If you have any questions, we’re here to help!

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My Rental Property Isn’t Cash Flowing!

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Finding out that why your rental property isn’t cash flowing can be frustrating. This is a common concern, especially as interest rates rise. Let’s dive into why this happens and how you can better understand it.

Rising Interest Rates and Cash Flow

In recent years, interest rates have increased significantly. This rise has made it harder for rental properties to cash flow, especially if you’re using DSCR loans.

Example: Two Years Ago vs. Now

Two years ago, if you took out a $250,000 loan at an interest rate of 3.75%, your monthly payment would have been about $1,158. Today, if you take out that same loan at 9%, your payment jumps to around $2,011. That’s an $853 increase per month on the same property.

This rise in interest payments directly affects your cash flow. Even if your rent has gone up, it often isn’t enough to cover the increased costs. For example, rents might have gone from $1,500 to $1,700, but that increase is much smaller than the jump in your monthly payment.

How DSCR Loans Have Changed

DSCR loans used to require a simple one-to-one ratio, meaning your rental income just needed to cover your expenses to qualify. Now, many DSCR lenders require a higher ratio, like 1.1 or more. This means your property must generate more income than before to qualify for the loan.

On top of that, other costs like taxes and insurance have also increased, putting even more pressure on your cash flow.

What Happens When Interest Rates Drop?

Here’s where the silver lining comes in. If interest rates drop, your cash flow improves.

Example: Interest Rate Drops to 7%

Let’s say the interest rate drops to 7%. In that case, your payment on the same $250,000 loan would decrease to about $1,663. That’s a $348 savings each month compared to the 9% rate.

Example: Interest Rate Drops to 5%

If interest rates drop even further to 5%, your payment could go down to $1,342. That’s a massive $669 improvement in cash flow compared to the 9% rate.

Why You Should Still Consider Buying

Even though cash flow might be tight now, buying properties with good equity can still be a smart move. If you find a property with 25-30% equity and it’s at least breaking even, you could see great returns in the future when rates go down.

Example: Break Even Now, Profit Later

If you buy a property now that breaks even or comes close, as rates go down, you could refinance and suddenly have a property that’s cash flowing by hundreds more each month. Plus, when homes become more affordable, more buyers will enter the market, driving up property values.

Conclusion

While it’s harder to cash flow with rising interest rates, there’s still potential for long-term gains. By understanding how higher rates impact your payments and planning for future rate drops, you can position yourself for success. Focus on finding good deals with equity, and as rates decrease, your cash flow will improve, and property values will rise. The key is patience and strategy. Do you need to find out why your rental property isn’t cash flowing? Contact us today! 

 

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Compare different loan options today!

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When you’re investing in rental properties, choosing the right loan can make all the difference in your cash flow and overall investment success. Let’s compare three different loan options. Theses include DSCR loans, traditional loans, and local bank loans. Therefore, understanding both the pros as well as the cons is vital to finding the best loan for your investment success! 

Traditional Loans: Pros and Cons

Pros:

  1. 30-Year Mortgage Stability: Traditional loans offer the security of a 30-year mortgage. Therefore, they have predictable payments over a long period, which can help with long-term financial planning.
  2. No Prepayment Penalty: Unlike some other loans, traditional loans usually don’t have prepayment penalties. You can sell or refinance your property without worrying about extra fees.
  3. Lower Interest Rates: Generally, traditional loans come with lower interest rates compared to DSCR loans. As a result, this can significantly impact your cash flow, especially on larger loans.
  4. Home Hacking Opportunities: If you’re buying a duplex, triplex, or fourplex, you can live in one of the units and qualify for an owner-occupied loan. This often means a lower down payment and a better interest rate.
  5. Uniform Rules Across States: Traditional loans follow the same rules and guidelines across all 50 states. This makes them a consistent option no matter where your property is located.

Cons:

  1. Income and Credit Requirements: In order to qualify, you need to prove your income and have good credit. This can be a hurdle for some investors.
  2. Cannot Close in an LLC: Traditional loans require you to close in your personal name, not in an LLC. This can affect how you hold and protect your properties.
  3. Limited to 10 Properties: You’re limited to financing 10 properties with traditional loans, which can be restrictive if you’re planning to build a large portfolio.
  4. Seasoning Requirement for Cash-Out Refinances: If you want to cash out, you must wait one year after your last refinance or purchase.

DSCR Loans: Pros and Cons

Pros:

  1. Flexibility: DSCR loans are incredibly flexible. Therefore, they can be used for single-family homes, fourplexes, and even larger properties. They’re also great for unique properties like VRBOs, non-warrantable condos, as well as mixed-use properties.
  2. Ease of Qualification: You don’t need to prove your personal income or employment status. The loan is based on the cash flow of the rental property itself.
  3. Close in an LLC: DSCR loans allow you to buy and refinance properties under an LLC, offering better protection for your investments.
  4. No Limit on the Number of Properties: Unlike traditional loans, many DSCR lenders don’t limit the number of properties you can finance.
  5. Available in All States: While guidelines may vary slightly, DSCR loans are available across all 50 states.

Cons:

  1. Prepayment Penalties: DSCR loans often come with prepayment penalties, which can be costly if you plan to sell or refinance within the first few years.
  2. Higher Interest Rates: Interest rates on DSCR loans are typically higher than traditional loans, which can impact your cash flow, especially on larger loan amounts.
  3. Market Sensitivity: DSCR loans can be more sensitive to market changes. During uncertain times, these loans might disappear or change rapidly, which can be risky for investors.

Local Bank Loans: Pros and Cons

Pros:

  1. In-House Products: Local banks often offer in-house loans, which they fund, service, and keep. These loans usually come with shorter terms, like three, five, or seven years. There are also options to refinance or adjust afterward.
  2. Flexibility: Local banks are known for their flexibility. They may finance unique properties or smaller loans that larger lenders won’t touch. Therefore, this makes them a great option for small towns and rural properties.
  3. No Prepayment Penalties: Like traditional loans, many local bank loans don’t have prepayment penalties, giving you the freedom to refinance or sell without extra costs.
  4. Favorable Terms for Small Loans: Local banks often prefer smaller loans, which can be a perfect fit for lower-priced properties in smaller markets.

Cons:

  1. Varied Rules: Each local bank sets its own rules, which means you have to shop around to find the right fit. This can be time-consuming.
  2. Lending Limits: Local banks may have lending limits, which can be a barrier if you’re trying to finance multiple properties or larger portfolios.
  3. Geographic Limitations: Local banks tend to lend within specific regions or markets. If your property is outside their footprint, you might not qualify.
  4. Callable Loans: Some local bank loans are callable, meaning the bank can demand full repayment before the end of the term if market conditions change.

Conclusion: Choose the Right Loan for Your Situation

Each of these loan types—DSCR, traditional, and local bank loans—has its own strengths and weaknesses. The best choice depends on your current situation, investment goals, and the specific property you’re financing. When you compare different loan options you can maximize your cash flow and protect your investments.

Remember, it’s all about finding the right fit for each property and stage in your investment career. Whether you’re just starting out or adding to your portfolio, there’s a loan that can help you achieve your goals. Compare different loan options today to set yourself up for a successful future! 

 

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10 Ways That a DSCR Loan Can Be Good for Your Deals

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Are you looking for a loan that fits your real estate investment needs? A DSCR loan might be the perfect solution. Whether you’re just starting out or have hit a roadblock with traditional lenders, this loan focuses on the property’s income rather than your personal finances. Let’s explore 10 ways a DSCR loan can be good for your deals!

1. Helps When Your Income Is Low

If your income over the last two years is too low to qualify for a conventional loan or a loan from your local bank, a DSCR loan is a great option. It doesn’t rely on your personal income. Instead, it focuses on the property’s rental income.

2. Works for New Businesses

Just started your business? No problem! A DSCR loan doesn’t require two years of business history. Even if you’ve been in business for just one day, you can qualify. DSCR lenders don’t care when you started or how long you’ve been in business.

3. No Worries If You’ve Changed Jobs or Moved

Have you recently changed jobs or moved? Conventional lenders might see this as a red flag, but not with a DSCR loan. This type of loan doesn’t care about your job history or recent moves, making it easier to get financing.

4. Perfect for New Investors

If you’re just starting as a real estate investor, you might not have the experience conventional lenders look for. But DSCR loans are ideal for new investors because they don’t require a history of investing.

5. Focuses on Positive Cash Flow

For the best rates and terms, your property needs to cash flow positively. DSCR loans are designed to reward properties that generate strong cash flow. The more your property earns, the better the deal you’ll get.

6. A Solution When You Have 10+ Properties

If you’ve reached the limit of 10 conventional loans, it’s time to consider a DSCR loan. These loans don’t have the same restrictions and still offer 30-year fixed-rate options.

7. Rewards High Credit Scores

While DSCR loans are available to those with lower credit scores, the best deals go to those with higher scores. A strong credit score can secure better rates and terms.

8. Ideal for Long-Term Holds

If you plan to hold onto your property for at least three to five years, a DSCR loan is a smart choice. However, be mindful of prepayment penalties if you decide to sell or refinance within that period.

9. Best for Turn-key Properties

DSCR loans work best with properties that are ready to rent and require no additional work. They’re not suitable for flips, as they don’t provide funds for repairs and often come with prepayment penalties.

10. Offers Interest-Only Payments

If you’re looking to improve cash flow, DSCR loans can offer interest-only payments. This option isn’t available with conventional loans, making DSCR loans a great way to manage your finances while your property appreciates.

Is a DSCR Loan right for you?

In the world of real estate investing, finding the right financing is key. A DSCR loan offers flexibility, especially when your personal finances don’t meet conventional standards. By focusing on the property’s income, this loan opens doors for both new and experienced investors. Consider the 10 ways a DSCR loan can be good for your deals as you move forward in your real estate investment journey!

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What is a DSCR Loan and What Can You Do With It?

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What is a DSCR Loan and What Can You Do With It?

If you’re a real estate investor, you’ve probably heard about DSCR loans. But what is a DSCR loan, and how can it help you? Let’s dive in.

What is a DSCR Loan?

A DSCR loan, which stands for Debt Service Coverage Ratio loan, is designed specifically for real estate investors. This loan is never used for owner-occupied properties—only for investment properties.

The best feature of a DSCR loan is that it doesn’t rely on your personal income. That’s right, no tax returns, no W-2s, and no need to show any personal income. The focus is entirely on the property you’re buying. The lender looks at the income generated by the property, not your personal financials.

How Does a DSCR Loan Work?

The key to understanding a DSCR loan is knowing how the lender evaluates the property. They look at the rental income from that property to determine if it covers the expenses, including the mortgage, taxes, insurance, and any HOA fees.

A key term here is the DSCR ratio. This ratio compares the property’s income to its expenses. For example, if your property’s rent exactly matches your expenses, you have a DSCR ratio of 1. Lenders prefer a higher ratio, meaning the property brings in more income than it costs to operate.

Benefits of a DSCR Loan

There are several benefits to using a DSCR loan:

  1. No Personal Income Requirements: 

This loan type doesn’t care if you write everything off on your taxes or if you don’t have a steady job. It’s all about the property’s income.

  1. Flexibility: 

Whether you’ve just started your business or have been around for years, it doesn’t matter. DSCR loans are available even if you don’t have an established business.

  1. Variety of Options: 

DSCR loans come with many options, including three-year, five-year, 30-year, and even 40-year terms. There are also interest-only options to help keep payments low.

  1. LLC Friendly: 

You can purchase properties under an LLC, which can provide additional protection.

  1. Works Well with BRRR: 

If you’re using the Buy, Rehab, Rent, Refinance, Repeat (BRRR) strategy, DSCR loans are a perfect fit for transitioning to long-term financing.

Where a DSCR Loan Falls Short

While DSCR loans offer many advantages, they aren’t perfect for every situation:

  1. Higher Interest Rates: 

DSCR loans often have interest rates 1% to 3% higher than conventional loans. The market for these loans is more segmented, so shopping around is essential.

  1. Prepayment Penalties: 

Many DSCR loans come with prepayment penalties. If you sell the property within the first few years, you might face additional fees.

  1. Not for Owner-Occupied Properties: 

These loans are strictly for investment properties, so if you’re looking to finance a home you’ll live in, this isn’t the right choice.

  1. Credit Score Sensitivity: 

You need a decent credit score to qualify. Typically, lenders look for a score of at least 660, but higher scores can get you better rates and terms.

  1. Location Limitations: 

DSCR loans are often restricted to properties in larger communities. Smaller towns, especially those with populations under 25,000, may have fewer DSCR loan options.

Other Things to Know About DSCR Loans

  • Suitable for Short-Term and Long-Term Rentals: 

Whether you’re renting out a property long-term or using it as a short-term rental like an Airbnb, DSCR loans can be a good fit.

  • Not Dependent on Current Rent: 

You don’t need to have the property rented out to qualify. As long as you have a lease in place or are working on getting it rented, you can use a DSCR loan.

  • Covers Various Financing Needs: 

DSCR loans are available for purchases, rate and term refinances, and cash-out refinances.

Conclusion

DSCR loans are a powerful tool for real estate investors. They offer flexibility, don’t rely on personal income, and provide a range of options to suit different investment strategies. However, they do come with higher interest rates and other considerations, so it’s crucial to shop around and understand all the terms before committing.

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