Frequently Asked Questions - DSCR Loans
The FAQ page provides valuable insights into DSCR loans, a unique mortgage solution that caters to borrowers looking for flexible financing options with no income documentation, to purchase or refinance their rental properties. With over 30 years of mortgage lending experience, I am committed to simplifying the loan process and offering tailored mortgage solutions that meet your needs.
What is a DSCR loan?
A DSCR loan, or Debt Service Coverage Ratio loan, is a type of mortgage that focuses on the income generated by an investment property rather than the borrower's personal income. This allows for more flexibility in qualifying for a loan.
How quickly can I close on a DSCR loan?
In most cases, we can close on a DSCR loan within 21 days, allowing you to move forward with your investment plans quickly.
What types of properties are eligible for a DSCR loan?
Eligible properties typically include residential rental properties, multi-family homes, and mixed use commercial properties that generate income.
What interest rates can I expect for a DSCR loan?
Interest rates for DSCR loans can vary based on market conditions and the specifics of the loan. It's best to contact us for the latest rates tailored to your situation. Often, our rates are lower than conventional financing for investment properties.
Can I use a DSCR loan to refinance an existing mortgage?
Yes, you can use a DSCR loan to refinance an existing mortgage, provided that the property still generates sufficient income to cover the new loan terms.
Do I need to provide income documents for a DSCR loan?
No, DSCR loans typically do not require personal income documents, making it easier for investors to secure financing based on their property’s income potential. Even if you plan to rent the property short term, with airbnb or VRBO, the market rents can still be used to qualify for the loan.
Who can benefit from a DSCR loan?
DSCR loans are ideal for real estate investors, property owners, or anyone looking to finance an income-generating property without the typical income documentation.
Is a credit check required for a DSCR loan?
While a credit check is generally part of the loan approval process, the focus is primarily on the property's income rather than the borrower's personal credit history. A 680 or above, credit score is required for most programs
What documents do I need to provide for a DSCR loan?
You will primarily need documentation related to the income generated by the property, such as leases or rental agreements, If the new loan is being used to purchase a property, and the property is vacant, as long as it is in rentable condition, the market rent will be used to qualify for the loan.
How can I get started with my DSCR loan application?
You can get started by contacting us directly to schedule a DSCR loan consultation. We'll guide you through the application process and answer any questions you may have.
Ready to Explore DSCR Loans?
Contact DSCR Loan Broker today to schedule your consultation and discover tailored mortgage solutions that work for you.
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