Based in New York City for nearly 15 years, BFR is an expert in DSCR mortgages. We will walk you through what is a DSCR mortgage and how the process works.
A Debt Service Coverage Ratio (DSCR) loan is a type of non-qm mortgage where you qualify for a loan based on your property’s cash flow, not your income. A DSCR mortgage is ideal for real estate investors. You can qualify for a home loan without using your tax returns and you can avoid high rates and high points of private loans!
Obtaining a debt service coverage ratio loan can help you expand your investment portfolio easier and is an increasingly popular loan product OFFERED in most of the 50 states. Please call us at 212-933-0157 or email email@example.com to see if we can help you in your area.
Lenders will evaluate the rental income on a property and compare that to the proposed mortgage payments. They don’t review tax returns and are essentially lending on the merits of the property, more so than the borrower themselves. They do check for credit and want to make sure certain equity requirements are met.
Benefits of DSCR Loans for real estate investors include:
Some lenders ask for a 1.25% DSCR to qualify for a debt service coverage ratio loan. However, Block Financial Resources, has lenders that allow real estate investors to qualify for a loan with a DSCR as low as .75%. This means if a property rents for $3,000/month, the lender will allow PITI (principal, interest, real estate taxes, and homeowners insurance) of $4,000 on a single family home.