DSCR LOAN KENTUCKY

Unlocking Financial Success with DSCR Loans in Kentucky

  • Up To 85% of Purchase Price or Refi
  • Up To 80% for Cash Out Refinancing
  • FICO as low as 620
  • Single Family 
  • Multifamily 
  • Commercial Real Estate Investment

Investment Real Estate DSCR Lender !

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The Best DSCR Loan Lender in Kentucky offering DSCR Loans at Great Rates & Terms

Understanding DSCR Loans in Kentucky: DSCR loans are a game-changer for real estate investors in Kentucky. Whether you’re eyeing residential rental properties or commercial ventures, the DSCR loan is designed to evaluate a property’s ability to cover its debt obligations through its income. In essence, it’s a financial tool that ensures your investment is not just a property but a lucrative asset.

Committed to prompt processing and catering to various real estate transactions, including multifamily investments, real estate investor ventures, and value-add properties, our DSCR Loans are tailored to meet your unique needs. Discover why Kentucky stands out for real estate investors.

Benefits of DSCR Loans

  • No evidence of personal income required
  • Maximize cash flow with 30 and 40 year interest only programs
  • Cash out to continue buying
  • Fast Close!
  • No verification of employment
  • Nations #1 DSCR Loan Lender
  • Up to 85% of Purchase
  • Up To 80% of Rehab or Cash out rehab
brrrr method

PURCHASE

No Income Investment Loan
Just use rental income to qualify!
No DTI  Up To 85% LTV!
Interest Only terms available
30 and 40 year amortization options

Refinaance your home

CASH OUT REFINANCE

Cash Out Re-Finance your investment
property, Up To 80% LTV!
Low Rates, High Leverage!
Minimal Documentation
Fast Close

cash out refinance

REFINANCE {RATE AND TERM)

Refinance passive income
from your investment property.
No income or employment required!
Up to 40 year amortization
Interest Only Options!

ADDITIONAL LOAN PRODUCTS WE OFFER IN KENTUCKY:

dscr loan program

DSCR LOAN

*Up To 80% LTV
* Cash Out Refinance
* 15-30 Day Close!
* No Income Required
* No Employment Required

fix and flip loan programs

FIX TO RENT

*Up to 90% of the Purchase
*100% of the Rehab.
* Closing as fast as 5 days!
* Fix to Flip or Fix to Refi .
* 30 or 40year DSCR loan

rental loan

CASH OUT REFI

* Cash-out & Refinance
*30 or 40 year loan..
* Closing 30 days!
* Up To 80% LTV

construction loan

CONSTRUCTION

*Ground Up Construction
Up To 80% Of Land
* 100% of Construction
* Builders and Developers!

 

DSCR LOAN KENTUCKY- JUST 4 STEPS TO CLOSE!

Step By Step DSCR Loan Application Process

Step 1: Apply

Open a new browser
Go to https://www.CambridgeHomeLoan.com/DSCRLoanApplication

Step 2: Submit Proof of Your Properties Income

As your creditworthiness is verified by the income you will generate from the property you are buying; you need to provide proof that your property can cover the mortgage payments. So, provide the needed documents to showcase your property’s income against the loan amount.

Step 3: DSCR Calculation and 1007 Rent Schedule

Once you submit the loan application, your lender will calculate the DSCR ratio, which must be greater than 1, to have your mortgage approved. Moreover, during the appraisal the lender will require a 1007 Rent Schedule to know the property’s fair market rent and ensure the property can sustain the mortgage with market rents.

Step 4: Closing

DSCR loans do not need information about your financial history; the application and closing procedure is considerably faster than those for other types of mortgage loan programs.

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What are the requirement to obtain a Debt Service Coverage Ratio (DSCR) Loan?

The only requirement for a DSCR loan is the assets ability to repay the debt on the loan. Typically a DSCR Loan lender in Georgia will have a required ratio that needs to be met to qualify for the DSCR loan.  A 1x means that the cash flow of the property needs to cover 100% of the property expenses including the mortgage. 

Some lenders require the DSCR to cover 1.2 or 1.25 times. The higher this ratio the better for both the lender and the property owner. If your DSCR ratio is 1.2, than your properties cash flow covers 20% more than the properties expenses. As your preferred dscr loan lender CambridgeHomeLoan.com can lend with DSCR down to .075.

Get pre-qualified for Investor Cash Flow Mortgage based on potential rental income

Get Started

No charge and no obligation to apply.
No income or tax returns required.

dscr loan

Key Features of DSCR Loans from CambridgeHomeLoan:

Efficient Processing for Timely Transactions: CambridgeHomeLoan prioritizes speed, ensuring your DSCR Loans are processed swiftly. Whether it’s a multifamily investment, a value-add project, or a real estate investor venture, our streamlined approach expedites your access to capital.
 
Adaptability for Various Real Estate Endeavors: As your top DSCR Loan partner in Kentucky, we support diverse real estate endeavors. From multifamily investments to real estate investor projects and value-add properties, our DSCR Loans are designed to meet the demands of various transactions.
 
Why Kentucky Appeals to Real Estate Investors: Discover the allure of Kentucky for real estate investors. With its diverse landscapes, economic vitality, and unique real estate opportunities, Kentucky offers a conducive environment for real estate investment. From historic neighborhoods to strategic investment opportunities, the state provides a range of options for value-added real estate ventures.
 
DSCR Loan: Tailored for Real Estate Investors: The DSCR loan is crafted for real estate investors seeking qualification based on the cash flow generated by the rental investment property. Bid farewell to traditional requirements such as income proof, tax returns, and employment information. Our innovative approach focuses on the property’s cash flow, providing a streamlined and investor-friendly lending solution.

 

DSCR LOAN LENDER (FREQUENTLY ASKED QUESTIONS)

Are DSCR Loans Expensive?

DSCR loans typically require a 20-25% down payment.

 
Is it hard to get a DSCR Loan?

Not at all! Approval for DSCR loans is easier because it depends on your property’s income rather than your financial situation.
DSCR loans are simpler to obtain, and the application procedure is more efficient and simplified. The criteria for DSCR loans are generally less stringent.

What type of property can I buy with a DSCR Loan?

The DSCR loan allows you to acquire a wide range of properties for various purposes, including short-term and long-term rental. You can buy a single family investment property, 1-4 Family or 5+ Multifamily.

How long is a DSCR loan?

DSCR loans are typically given for terms of anywhere from 5 to 25 years, with the most common being 15 or 20 years. The length of the loan will generally be determined by the lender based on factors such as the type of property being purchased and the projected cash flow of the business.

 
 
How can I improve my DSCR?

The easiest way to improve your DSCR is to invest more money, but you can also buy insurance, fight annual property taxes, and charge more rent. Allowing pets or including extra amenities like a washer and dryer are easy ways to increase your rent. Additionally, In order to improve your DSCR, you need to increase your net operating income or reduce your debt service payments.

 
 
 
How do I know if I’m eligible for a DSCR Loan?

To be eligible for a DSCR Loan, you must have strong credit and income. Most importantly, you’ll need to demonstrate that you can make your mortgage payments by providing proof of income from your rental property.

 
What is a no DSCR loan?

A no DSCR loan is a type of commercial loan that does not require the borrower to have a  DSCR of 1.0 or higher. This indicates that the borrower does not need to earn enough income to cover their monthly debt payments. No DSCR loans are typically used by businesses that are expanding or taking on new projects, as they may not have the income necessary to meet all their debt obligations.

 
 
What are the pros and cons of a DSCR loan?

Pros:
• Easier to qualify than other investment property loans
• No personal income verification is required
• Flexible underwriting guidelines
• It can be used to finance properties with little or no rental history
Cons:
• Higher interest rates and fees than conventional mortgages
• 20-25% down payment required
• Must provide proof of income from rental property to qualify
• Closing costs can be high for DSCR loans.

Overall, DSCR loans can make it easier to purchase investment properties and provide flexible financing options. Be sure to compare lenders and get the best rate available for your situation.

 
 
What does a DSCR ratio of 1.25% mean?

A DSCR of 1.25 means that there is sufficient cash flow to cover the loan payments and other debt obligations. Specifically, a DSCR of 1.25 indicates that for every $1.25 in annual loan payments, there is $1.00 of net income available to pay those debts after accounting for all operating expenses (including taxes and depreciation).

A DSCR of 1.25 is considered a good ratio by lenders, as it shows that the borrower has sufficient income to cover their loan payments. It also indicates that the borrower’s debt obligations are manageable. In general, lenders prefer to see a DSCR of at least 1.15 for conventional loans and 1.25 for investment properties.

Example:
Rental income: $150000, Expenses: $25000, Mortgage Payment: $100000
DSCR= $150K – $25K/ $100K
= $125K/$100K = 1.25

A higher DSCR is even better, as it shows the lender that the borrower has more than enough income to cover their loan payments.

 
Do you need good credit for a DSCR loan?

No, you do not need good credit for a DSCR loan. While your credit score is still important, it carries less weight when it comes to qualifying for a DSCR loan. This is because lenders will focus more on the rental income and expenses associated with the property in order to determine if the borrower can make their loan payments.

 
What is a DSCR for commercial loans?

The debt service coverage ratio (DSCR) for commercial loans is a measure of an entity’s ability to meet its debt obligations. It is calculated by dividing the net operating income (NOI) by the total loan payments per year. The higher the DSCR, the more cash flow there is available to make payments on the loan, and it is thus preferred by lenders.

 
 
 
What is the maximum DTI (Debt to income) for a DSCR loan?

The maximum debt-to-income (DTI) ratio for a DSCR loan is usually 45%. This means that the borrower must have income that is at least 45% lower than their total monthly debt payments.

In other words, if your total monthly debts are $2,000, then you’ll need to demonstrate at least $1,800 in monthly income to qualify for a DSCR loan.
While this is the general rule of thumb, lenders may have different requirements, so it’s best to check with your lender to see what their specific DTI requirements are. There are also other programs that require no DTI ratio.

 
How many DSCR loans can you have?

Generally, there is no limit on how many DSCR loans you can have. However, lenders will usually impose a maximum loan-to-value (LTV) ratio and/or total debt service coverage ratio (TDSCR) when determining the amount of money they are willing to lend out. It’s important for borrowers to work with lenders to ensure that their rental income and expenses align so that they can meet the loan terms.

 
 

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