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 |
| Credit | 400 and above Credit accepted |
| Qualifications & Requirements |
|---|
| 400+ Credit. Scores below 620 will require a min 35% down payment (or equity) in property and no open bankrupty. No history of recent foreclosure |
| Liquid Reserves are not required but borrower will get the best rate and terms with liquid reserves |
| No Income required |
| Completed Loan Application |
| $575 Processing Fee |
| $60 Wire/Courier Fee |
| Personal Guarantee is required |
| Loans can be made on Investment or business properties only. We do not finance primary residences |