What is a DSCR loan?
A debt-service coverage ratio (DSCR) loan is a type of non-QM loan for real estate investors. Borrowers are allowed to qualify based on cash flow generated from an investment property as opposed to their personal income. This is a great option for real estate investors who may not be able to qualify for a traditional investment loan.
DSCR: How is it calculated?
DSCR: Pros and Cons for Real Estate Investors
Pros of DSCR
Allows investors an alternative way to fund investment properties
Investors can use the income generated from an investment property instead of their own income to qualify
Gives investors the ability to quickly scale their real estate portfolios
Cons of DSCR
Higher down payment requirements
DSCR loans tend to have higher interest rates than standard rental loans
Investor Cash Flow Loans is a non-traditional loan service that specializes in investment property loans for owners, investors, and developers in need of funding outside the scope of traditional banks and lenders.
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