If you are a real estate investor tired of providing tax returns, W-2s, and pay stubs to qualify for a mortgage, DSCR loans are built for you. DSCR stands for Debt Service Coverage Ratio, and these loans qualify you based on one thing: can the property income cover the mortgage payment?
How DSCR Loans Work
A DSCR loan looks at the ratio between a property rental income and the proposed mortgage payment. If a property generates $3,000 per month in rent and the mortgage payment would be $2,400, the DSCR is 1.25x. Most lenders want a DSCR of 1.0x or higher.
Who Qualifies
- Credit score of 640+
- Property with positive or break-even cash flow
- 20-25% down payment
- No income verification required
- No employment verification required
- Self-employed investors welcome
Loan Details
- Amounts: $100K-$5M
- Terms: 30-year fixed or ARM options
- Property types: Single family, multi-family, condos, townhomes
- Close in: 2-4 weeks
Why Investors Love DSCR Loans
Traditional mortgages cap at 10 financed properties. After that, conventional lenders say no. DSCR loans have no limit on the number of properties you can finance. Buy your 11th, 20th, or 50th rental property – as long as it cash flows, you can finance it.
At Slate Financial, David R. Bizousky and the team match investors with DSCR lenders who offer the best rates for their portfolio. Apply in 5 minutes at slatefinancial.io/get-funded.
Need Business Funding?
Slate Financial matches you with the best funding options. Apply in minutes with no credit impact.
Apply Now - FreeTags
RoadToFirstMillion
Founder & CEO, Slate Financial
David R. Bizousky is a financial services entrepreneur and the founder of Slate Financial, a leading alternative lending platform that has funded over $2.5 billion for 10,000+ businesses across all 50 states.