DSCR Loans
Pros of DSCR Loans:
● Investment properties: DSCR loans are specifically designed for investment properties, including multi-family residential, mixed-use, office, retail, and other commercial properties.
● No personal income verification: Unlike traditional loans, DSCR loans do not require personal income verification. Instead, the loan is underwritten based on the property’s income-generating potential.
● Higher loan amounts: DSCR loans typically have higher loan amounts, up to $5 million, allowing you to finance larger projects.
● Lower down payment: With a lower down payment requirement of 20% to 25%, you can use your capital for other investments or business needs.
Cons of DSCR loans:
● Higher interest rates: DSCR loans generally have higher interest rates than traditional loans due to the increased risk associated with investment properties.
● Stricter requirements: DSCR loans have stricter requirements than traditional loans, including minimum debt coverage ratios and reserve requirements.
● Not for owner-occupied properties: DSCR loans are not intended for owner-occupied properties, meaning you cannot live in the property that is being financed.
Our DSCR loans are best suited for:
● Real estate investors who are looking to expand their portfolio and finance investment properties.
● Business owners who want to purchase or refinance commercial real estate properties.
● Developers who are looking to build or renovate commercial properties.
