O C F I T B L O G Mortgage What is a DSCR loan?

What is a DSCR loan?

What is a DSCR loan? post thumbnail image

A DSCR loan is a specific type of financing that mandates the borrower to uphold a particular ratio of cash flow from rental properties to debt obligations. This ratio, known as the debt service coverage ratio (DSCR), guarantees that the borrower can meet their loan payments.

  • Title can be held in an LLC, S Corp, C Corp, or trust
  • No limit on the number of financed properties
  • Eligible properties include single-family homes, condos, townhomes, and condo hotels with 2 to 48 units
  • Options for 30-year fixed or 40-year fixed with interest-only option
  • No need for tax returns, W-2s, or pay stubs
  • Available for purchase, rate and term refinance, or cash-out refinance
  • Minimum FICO score of 680 for 80% LTV purchase
  • Minimum FICO score of 660 for 75% LTV cash-out refinance

We offer several DSCR loan options including a no-ratio DSCR program where we don’t use rental income to qualify the property the decision is strictly based on equity in the property and the borrower’s credit score.

Contact us For more information about our DSCR mortgage programs and how they help real estate investors expand their real estate portfolio.

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