Rental - DSCR
Rental Loan - DSCR
If you're in the market for commercial real estate financing, you might have come across the term "DSCR loan" and wondered what it means. DSCR stands for Debt Service Coverage Ratio, a type of loan that's becoming increasingly popular among borrowers.
Who is it for?
Unlike traditional loans, DSCR loans don't rely on your personal credit or financials. Instead, they're based on the income of the property you're looking to buy or refinance. This means that even if you don't have great credit, you may still be able to qualify for a DSCR loan.
| Terms | |
|---|---|
| Loan Amount | Up to 80% of Appraised Value |
| Origination Fee (Points) | 0% to 5% of loan amount (payable at closing) |
| Interest Rate | 7.99% to 12.99% Principal and interest payments. Interest only amortization also available |
| Pre-Payment Penalty | None after 90 days. 1% if prior to 90 days. |
| Term | 5,7,10 & 30 year terms |
| Time to Fund | As little as 14 days |
| Income Verification | "No Income" options available. |
| Qualifications & Requirements |
|---|
| 580 + Credit Score. No Income options available |
| Liquid Reserves (cash, stocks, bonds, money market) must equal at least 4% of the loan amount. Seasoned for two months. |
| Two Years Tax Returns |
| Completed Loan Application |
| $575 Processing Fee |
| $60 Wire/Courier Fee |
| Personal Guarantee worth at least 30% of the loan amount. |
| Borrower must have Debt to Capital ratio less then 90% (As calculated by Total Debts/Total Asset Value) |