A DSCR loan is designed for real estate investors who want to qualify based on a property’s cash flow rather than their personal income. Instead of focusing on your W-2s or tax returns, these loans consider how well the rental income covers the property’s mortgage payments and related expenses. If the property’s net operating income can comfortably meet or exceed these costs—often reflected by a ratio of at least 1.0—then you may qualify.

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Key Features:

• Income-Based on Property: Approval is largely determined by the property’s income potential, not just your personal financial history.

• Flexible Qualification: Ideal for investors who prefer showing rental income instead of traditional pay stubs.

• Variety of Properties: DSCR loans can apply to a range of investment properties, from single-family rentals to multi-unit buildings.

 

Important Considerations:

• Not a Guarantee: Loan qualification depends on meeting lender requirements. Individual terms will vary.

• Subject to Change: Rates, eligibility, and underwriting standards can shift without notice. Always verify current requirements before applying.

• Legal Disclosures: All offers are subject to applicable federal, state, and local laws, including the Real Estate Settlement Procedures Act (RESPA).

 

Next Steps:

For more information and personalized guidance, consult with LaTonia Knox, a licensed mortgage professional, and review all terms and conditions. Click Contact Us to get started.

 

Disclaimer: This is not a commitment to lend. All loan products, terms, and conditions are subject to underwriting approval and availability.