DSCR Loans Near Me

What Are DSCR Loans?

Debt Service Coverage Ratio (DSCR) Loans are for real estate investors buying rental properties based on the property’s cash flow not personal income. These loans look at the property’s ability to generate enough rental income to cover mortgage payments, so are perfect for borrowers with complex or variable income streams.

DSCR loans have a simplified qualification process, often no need for traditional income verification, such as tax returns or pay stubs. This type of financing is popular among investors wanting to build or expand their real estate portfolios without impacting their personal debt-to-income (DTI) ratios.

DSCR Loan Features:

• Qualification based on rental income: The primary focus is whether the property’s income covers the mortgage and related expenses.
• No personal income verification: Lenders look at the property’s financial performance, not the borrower’s personal income.
• For investors: Perfect for purchasing or refinancing investment properties.

When Should You Get a DSCR Loan?

DSCR loans are for real estate investors who want to qualify for a mortgage based on the income-generating potential of the property. Situations where DSCR loans are good for you include:

• Building a rental portfolio: If you’re an investor looking to buy multiple rental properties, DSCR loans let you leverage the property’s income potential.
• Expanding investment opportunities: Investors who don’t meet conventional loan income requirements can qualify based on the property’s cash flow.
• Reducing personal financial exposure: Since DSCR loans focus on the property’s income, they help keep your personal DTI ratio healthy.

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DSCR Loan Benefits

• No personal income requirements: This makes DSCR loans available to investors with non-traditional or fluctuating income sources.
• Scalable financing: As long as the property’s income covers the mortgage, you can finance multiple properties.
• Faster approvals: With less income verification, DSCR loans are often faster than traditional mortgages.

DSCR Loan Considerations

While DSCR loans are great for real estate investors, remember:

• Higher down payments: DSCR loans usually require 20-25% down, reflecting the higher risk for lenders.
• Interest rates and terms: These loans may have slightly higher interest rates due to the focus on rental income.* Property performance is key: Approval is based on the property’s ability to generate enough rental income to cover the mortgage.

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Is a DSCR Loan For You?

A DSCR loan might be right for you if:

• You’re an investor looking to finance rental properties based on their income.
• You have non-traditional income streams and don’t want to do traditional income verification.
• You want to expand your real estate portfolio without affecting your personal DTI ratio.

How to Apply for a DSCR Loan

At Keyswag Lending, we help real estate investors get DSCR loans to support their investment strategy. Our team guides you through the whole process to make it as smooth and efficient as possible.Learn more About Us and how we help investors succeed.

Here’s how we can assist:

• Initial consultation: We’ll review your financing needs and investment strategy to determine the best Loan Options.
• Customized loan options: Our team provides options to fit your investment strategy, including fixed and adjustable-rate mortgage options.
• Support throughout the process: From application to closing, we’ll be with you every step of the way, offering guidance and ensuring your loan process goes smoothly.

Ready to Get Started?

Contact Keyswag Lending today for a free consultation to get started with DSCR loans. We’ll help you finance your investment properties with income-based financing options.