DSCR Mortgages

A DSCR loan may be the non-traditional path to homeownership for you!

So what are they? DSCR mortgages are a common type of non-QM loan regularly used by people who don’t qualify for traditional mortgages due to self-employment or other financial anomalies. They’re also popular among rental investors, house flippers, and non-U.S. citizens eager to enter the American real estate market.

DSCR stands for “debt service coverage ratio.” So, what does that mean? Essentially, DSCR is a calculation lenders use to evaluate a property’s income potential compared to its debt load.

The standard DSCR formula is net operating income – which is revenue minus operating expenses – divided by total debt obligations. Typically, lenders want a DSCR of 1% or greater, indicating that the property breaks even or earns a profit after paying its bills.

These loans provide lots of leeway to borrowers and can provide significant benefits, including:

• Stated Income (No Income Verification)
• 30-Year Fixed w/ 10 YR IO Option
• Up to 85% LTV (Cash Out to 75% LTV)
• Minimum Fico 620 (No Fico requirement under 50% LTV)
• Loan amounts to 5M
• No Sourcing or Seasoning of Assets
• No Reserve Requirement
• Short-Term Rentals OK
• Foreign Nationals – OK
• Close in 7 – 10 Days
• 1 – 4 Unit Investment Properties
• 5-24 Multi-Family
• No Ratio DSCR is available

Experienced mortgage agents know how to structure DSCR offers to help borrowers who may have trouble qualifying for traditional loans. Get in touch with the experts at [company name] today. We’ve helped countless people – U.S. citizens, foreign nationals, and non-naturalized residents alike – secure real estate loans, even under unusual circumstances.