DSCR LOANS: SECURE YOUR RENTAL INVESTMENTS. LONG-TERM PRIVATE FINANCING FOR RENTAL PROPERTIES

What is a DSCR LOANS?

A Debt Service Coverage Ratio (DSCR) loan is a long-term financing option designed specifically for real estate investors. It is ideal for funding a new purchase, refinancing a property you own, or freeing up cash in your rental portfolio to gain asset appreciation and cash flow without the hassle of bank underwriting rules . This loan does not require income verification or tax returns. This allows you to get the most out of your investments properties.

Lending simplified, profits amplified.

What is a DSCR LOANS?

A Debt Service Coverage Ratio (DSCR) loan is a long-term financing option designed specifically for real estate investors. It is ideal for funding a new purchase, refinancing a property you own, or freeing up cash in your rental portfolio to gain asset appreciation and cash flow without the hassle of bank underwriting rules . This loan does not require income verification or tax returns. This allows you to get the most out of your investments properties.

Lending simplified, profits amplified.

DSCR Terms

PROPERTY TYPE

  • Single Family
  • 2-4 Unit
  • 5-10 unit
  • Townhomes
  • Planned Unit Development (PUD)
  • Warrantable Condos/ Crossed portfolio

Loan Amount

US$125K to US$ 2.5M ( Higher amount on an individual basis)

TYPE OF LOAN

30-Year Fixed or Adjustable-rate mortgages (ARMs): 5/1, 10/1 (Partial IO or Amortizing)

MAXIMUM LOAN TO VALUE

  • PURCHASE: 80%
  • REFINANCE: 75%
  • CASHOUT: 70%

Term Length

30 Year

BASE RATE

6.875%

MINIMUM FICO SCORE

680

PREPAYMENT PENALTIES

5 YEARS DECLINING (5% to 1%)

FOREIGN NATIONALS ACCEPTED

 + 0.5 to base rate

REQUIREMENTS

  • Latest three months bank statements
  • ID, passport (US visa for F nationals)
  • Entity documents (LLC or Corp), EIN & OP agreement
  • 6 months of liquidity/reserves
  • Non-owner occupancy certification
  • SSN for credit report and background check
  • Evidence of insurance (full replacement + 500K liability)+ 6 months rental loss
  • Minimum Fico score of 680
  • Signed loan application
  • Income based on rental cash flow subject to A DSCR ratio of 1:00
  • HOA documents (only condos)
  • Foreign nationals: asset sourced and seasoned for 60 days in US FDIC-insured bank

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FAQ

What is a DSCR loan?

A DSCR (Debt Service Coverage Ratio) loan is a financial product that looks at the cash flow (based on rental analysis) generated from an investment property to cover the loan’s principal, interest, property taxes, insurance premiums and HOA if applicable.

The debt service coverage ratio is calculated by taking rental revenue and dividing it by the cost an owner has to pay for a property. Costs include the principal and interest of the loan, property taxes, insurance and HOA if applicable.

How can DSCR loans enhance my financial wellbeing?

Our DSCR loans are tailored to consolidate and restructure existing debts, providing more favorable terms and extended durations. This can lead to reduced monthly payments and more efficient debt management, ultimately bolstering your long-term financial health.

Why is considering a DSCR crucial when refinancing a loan over a longer term?

  • No Personal Income or Employment Verification required.
  • Faster closing process
  • Very competitive rates
  • Allows a real estate investor to change a Short Term Loan such as a Fix and Flip, Bridge and Ground up Construction to a 30 year Loan.

Why is considering a DSCR crucial when refinancing a loan over a longer term?

  • No Personal Income or Employment Verification required.
  • Faster closing process
  • Very competitive rates
  • Allows a real estate investor to change a Short Term Loan such as a Fix and Flip, Bridge and Ground up Construction to a 30 year Loan.

What is the maximum loan amount based on DSCR?

You can apply for a DSCR loan ranging from a minimum of $100,000 to $2 million.

How can I leverage a DSCR loan to my advantage?

You can use a DSCR loan for various purposes, including property purchase, rate & term refinancing, and cash-out refinancing.

Do you offer financial counseling to help me better grasp my DSCR and its impact on my borrowing capacity?

Absolutely! Equity Lending Solutions has a team of financial experts ready to assist you in making informed decisions about our loans.