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  • Writer's pictureVadim Shtil

Demystifying DSCR Loans

Authors: Vadim Shtil & S.J. Antonucci

After hearing from so many clients with questions about DSCR Loans, we decided to put together an informative blog post to answer all of your questions about DSCR financing so that you'll have the knowledge you need to make the most educated decisions about your next Real Estate Investments! Knowledge is Power!

Click the Arrows on the side to expand the topics and get your DSCR questions answered!

What Are DSCR Loans?

DSCR Loans are a type of investment property loan that qualifies the property, not the individual borrower, meaning: 💵 The loan is based on the property's cash flow, not the borrower's personal income. 💰

DSCR stands for Debt Service Coverage Ratio, which is a measure of an entity's cash flow related to its debt obligations. The DSCR basically measures how much cash flow is available to pay current debts. DSCR Loans are a type of Investor Loan used to purchase non-owner occupied investment properties.

The DSCR calculation reveals if a real estate property is cash flowing enough money to cover the mortgage payment. DSCR loans are designed for Real Estate Investors who want to qualify for a mortgage based on cash flow generated by their investment property instead of qualifying for the mortgage based on full documentation income proof, like tax returns and employer pay stubs.

These loans have been increasing in popularity and for good reason: they are designed to be available to both newer investors as well as seasoned real-estate gurus and make buying investment properties smooth and easy with fast closings.

How Do DSCR Loans Work?

How To Calculate DSCR For A Real Estate Loan?

How Do Banks Determine DSCR Rental Income?

Who Are DSCR Loans Good For?

What Are The Pros & Cons of DSCR Loans?

How Different Are DSCR From Conventional Loans?

What Kind Of Property Can I Buy With A DSCR Loan?

So, are you ready to get started on a DSCR Loan for your next Investment Property?

We hope that this article has helped to Demystify DSCR loans for you and that after reading this post you feel armed with knowledge. Please share this post with your friends to spread awareness and help others to get informed.

At Shtil Group, we have a passion for helping people to achieve a better financial standing in their lives. Let's turn your Real Estate Dreams into Reality. We're here to guide you every step of the way.

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