DSCR loan
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DSCR loan (by Ken [NY]) May 19, 2024 8:12 PM
       DSCR loan (by 6x6 [TN]) May 19, 2024 8:19 PM
       DSCR loan (by plenty [MO]) May 19, 2024 8:23 PM
       DSCR loan (by Ray-N-Pa [PA]) May 19, 2024 8:53 PM
       DSCR loan (by J.R. [OK]) May 19, 2024 10:55 PM
       DSCR loan (by Jasper [OH]) May 20, 2024 7:31 AM
       DSCR loan (by zero [IN]) May 20, 2024 9:06 AM
       DSCR loan (by S i d [MO]) May 20, 2024 9:50 AM
       DSCR loan (by Jasper [OH]) May 20, 2024 12:37 PM
       DSCR loan (by Pmh [TX]) May 20, 2024 1:43 PM

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DSCR loan (by Ken [NY]) Posted on: May 19, 2024 8:12 PM
Message:

Has anyone gotten a DSCR loan? Is it as easy as the ads say? good credit, no proof of income etc --74.77.xx.xx




DSCR loan (by 6x6 [TN]) Posted on: May 19, 2024 8:19 PM
Message:

Following to learn.

From the web search:

"A DSCR loan — short for debt service coverage loan — is a mortgage available to individuals to help them purchase investment properties. Whereas traditional mortgage lenders review your income to determine your eligibility, DSCR lenders instead look at the investment property’s cash flow." --76.129.xxx.xx




DSCR loan (by plenty [MO]) Posted on: May 19, 2024 8:23 PM
Message:

I have a no doc loan but I'm not sure if that is the same or not. It was certainly easy. --172.59.xxx.xxx




DSCR loan (by Ray-N-Pa [PA]) Posted on: May 19, 2024 8:53 PM
Message:

I am told they are popular with Air BnB properties.

A typical loan requires a 1.2 to 1 ratio to cover the debit service ration (hence DSCR).

I suspect that in a stated income property that required ratio would be higher. --24.101.xxx.xxx




DSCR loan (by J.R. [OK]) Posted on: May 19, 2024 10:55 PM
Message:

Yes! When my mortgage broker couldn't get me a loan based on income, he went the DSCR route. Super easy and I needed to provide a lot less paperwork and info. They apparently also based it on the appraisals with a rent schedule which to me did not show enough rental income cash flow coming in. (I knew I could get more for rents than what the appraisal said.) But it passed. --73.1.xxx.xx




DSCR loan (by Jasper [OH]) Posted on: May 20, 2024 7:31 AM
Message:

Just sold a property to an investor who had this kind of loan. Seemed to be a very easy process, and the deal closed quickly. --71.29.xxx.x




DSCR loan (by zero [IN]) Posted on: May 20, 2024 9:06 AM
Message:

No helpful input from me, but I hope more info comes thru as I am interested. --107.147.xx.xx




DSCR loan (by S i d [MO]) Posted on: May 20, 2024 9:50 AM
Message:

There is usually less documentation involved with DSCR loans because they are loaning based on the property, not the borrower. Typically only applies to high dollar loans where the proceeds are $1.5 million or higher. Basically, they want something where if you go off the deep end and run away to Tahiti, a professional manager is already in place or can be farmed out to immediately.

In other words, the property is the secret sauce, not you. DIY landlords probably will not qualify for such loans, be advised. You will be required to submit financials for the property, since that's what is being evaluated. A Pro-Forma or possibly tax returns.

They also tend to have slightly higher interest rates (1-1.5 %) depending on the type of property. Multi-family/apartments do the best. Retail and Industrial are more costly.

--184.4.xx.xx




DSCR loan (by Jasper [OH]) Posted on: May 20, 2024 12:37 PM
Message:

The single family house I sold was less than 1000 s.f. in a Class C neighborhood. The investor who purchased it appeared to be a DIY landlord with just a handful of properties. I don't know what he had to do to qualify for this type of loan. --71.29.xxx.x




DSCR loan (by Pmh [TX]) Posted on: May 20, 2024 1:43 PM
Message:

interesting. my experience is lenders look at minimum 3 years T12s to determine if property can cover dscr. is there personal recourse on loan you are looking at ? then lenders will want personal financial statements --12.232.xxx.xx



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