DSCR Loans 101, with Jason Waters!

Debt-Service Coverage Ratio (DSCR) loans are a great financing option for real estate investors looking to grow their portfolios. These loans focus on the cash flow of the investment property not your personal income, so they are for seasoned investors and newbies alike. Let’s get into how DSCR loans work and why they might be for you.

What is a DSCR Loan?

DSCR loans are for investment properties and are approved based on the property’s ability to generate enough income to cover the debt payments. Lenders calculate the Debt-Service Coverage Ratio by dividing the property’s net operating income (NOI) by the total debt service (principal and interest payments). A DSCR of 1.0 or higher means the property’s income can cover the loan’s obligations.

DSCR Loan Benefits

• No Personal Income Verification
  Unlike traditional loans, DSCR loans don’t require personal income verification so it’s perfect for investors with fluctuating income or multiple properties.
• Fast Approval Process
  Since it’s based on the property’s cash flow, the underwriting is streamlined and often results in faster approvals and closings.
• Flexible Loan Terms
  DSCR loans offer flexibility with down payments, loan amounts and repayment schedules to fit your investment strategy.

Who is a DSCR Loan for?

DSCR loans are for:

• Real estate investors buying rental properties.
• Self-employed with non-traditional income.
• Investors refinancing an existing property to pull out equity.

How to Qualify for a DSCR Loan

To qualify, lenders will look at:

1. Property Cash Flow: A DSCR of 1.0 or higher (some lenders may require higher).
2. Credit Score: While not always required, a good credit score will get you better loan terms.
3. Down Payment: 20-30% down is typical for DSCR loans.
4. Loan-to-Value Ratio (LTV): 70-80% LTV

Why Choose the Jason Waters Lending Team?

We’ve been helping investors achieve their financial goals for years and specialize in DSCR loans for your specific situation. Our team provides expert advice, competitive rates and a hassle-free application process so you can grow your real estate portfolio with ease.

Contact the Jason Waters Lending Team today to learn more about DSCR loans for your next investment. Let’s get you more out of your real estate!