LBC Mortgage is an Exclusive Nationwide DSCR Broker
If you are a real estate investor or just starting your investment journey, you may be interested in some fast and flexible types of financing. A DSCR mortgage loan can be an excellent financing option for real estate investors looking to purchase income-producing property.
What Is A DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is a type of loan that is typically used by entrepreneurs to finance real estate projects. In fact, DSCR loans are widely used to finance commercial properties, but residential property financing is also very popular.
The DSCR loan is based on the cash flow of the project, which means that borrowers don’t need to show their income reports on paper to qualify. The lender typically analyzes a DSCR (Debt Service Coverage Ratio) to approve the loan.
How DSCR Is Calculated?
A Debt Service Coverage Ratio is a financial metric used to appraise a borrower’s ability to make their loan payments. The ratio is calculated by dividing the subject property’s Net Operating Income by the proposed debt service. A DSCR of 1.0 or higher is generally required by lenders in order for a loan to be approved. For instance, if a property investor wants to purchase a $500,000 rental property and they expect it to generate $5,000 per month in net operating income, they would need to have a minimum monthly debt service of $5,000 in order to qualify for a loan. The higher the DSCR, the greater the cushion the borrower has to cover any unforeseen expenses that may arise.
What Are The Advantages Of DSCR Mortgage?
Real estate investment is a very popular type of business in the United States due to its lower risks and high-income opportunities. DSCR loans make it easier to increase income and scale up any real estate business. Why is it so? Here are some of the top DSCR loans advantages:
- No bank statements or tax reports are needed to qualify.
- You don’t have to make millions to get approved and start growing your real estate business.
- DSCR is a great fit for both experienced and starting real estate investors.
- DSCR program allows receiving tax credits.
- DSCR loan often comes with flexible repayment terms. It allows borrowers to pay off their loans early or make larger payments when they have the extra cash.
- The down payment is only 20% which makes it affordable for most people to use their first home equity to cover this cost.
Who Can Benefit From DSCR Loans?
DSCR mortgage loans can be beneficial for a variety of borrowers:
- Experienced real estate investors seeking to boost their income with more investment properties, or refinance any of them.
- Starting entrepreneurs who plan to make money with rental properties
Note! Having a high credit score provides even more benefits and more affordable financing. Although, you can qualify even if your credit score is 640.
In short, DSCR mortgage loans can be a good option for a wide range of borrowers. So if you’re looking for an affordable loan with flexible qualifying criteria, consider an exclusive nationwide DSCR lending broker like LBC Mortgage.
Apply today and save your time and money with a nationwide DSCR broker LBC Mortgage:
- Free consultation
- Best DSCR deals on the market
- Unbeatable rates
- Fast approval
- The supportive and dedicated team
DSCR loans can be a great way to get the cash you need for your business. Though it is highly important to work with a knowledgeable and experienced broker who can guide you through it step by step. If you’re interested in learning more about DSCR loans or want to get started on the application process, apply today and get a free consultation. LBC Mortgage is an exclusive nationwide DSCR broker, and our team would be happy to answer any of your questions.
We can help you with DSCR loans in following States:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
We are here to help you take the next step towards securing the funding for your business needs. So what are you waiting for? Contact us today!