Commerical Real Estate Financing
DEBT/EQUITY SOLUTIONS

RENTAL PROPERTY DSCR LOAN
DEBT SERVICE COVERAGE RATIO
NO INCOME REQUIRED

UP TO 80% CASH OUT

Get a quote today

We refinance rental property with DSCR (Debt Service Coverage Ratio Loans. A DSCR loan is underwritten using only the properties cash flow rather than personal income or tax returns. A DSCR Loan for rental property can be used for Purchase, Refinance and Cash Out Refinance and is one of the most popular loans to grow investment real estate portfolios. A DSCR Loan is calculated by dividing the monthly rent by the monthly principal and interest payments, taxes, insurance, and association dues (PITIA). ratio is a tool to help lenders understand a borrower’s ability to pay back a loan based on the monthly rental income of the property.

DSCR Loan Property Types

DSCR loans can be used for the following property types:

– Single-family (1-4 unit) residential

– Vacation or short-term rentals

– Commercial or multifamily property

LOAN TYPES

READY TO GET STARTED

APPLY NOW!

The Debt Service Coverage Ratio: No-Income Mortgage Investment Loan

With a Debt Service Coverage Ratio investment loan you can qualify for an investment loan without using your tax returns. As a real estate investor, you can avoid the lengthy approval processes and strict criteria of bank loans. A debt service coverage ratio loan is a type of no-income loan. Qualify for a loan based on your property’s cash flow, not your income.

Securing a debt service coverage ratio loan can help you expand your investment portfolio easier than ever before.

What Is a Debt Service Coverage Loan?

A DSCR loan is a type of non-QM loan for real estate investors. Lenders use a DSCR to help qualify real estate investors for a loan because it can easily determine the borrower’s ability to repay without verifying income. These are becoming more and more popular with an investment strategy called BRRR (Buy-Rent-Re-finance-Repeat). This is an investment strategy that allows you to grow your passive income and investment property portfolio with minimal cash out of pocket.

What Is a Good DSCR (Debt Service Coverage) Ratio?

Most lenders will require a 1.20 or 1.25 DSCR ratio to qualify for a DSCR mortgage loan. However, CambridgeHomeLoan.com allows real estate investors to qualify for a mortgage loan with a DSCR ratio as low as .75 so that you can qualify with just the cash flow of your property. Interest rates are typically better on DSCR loans with ratios of 1 or above and that a DSCR ratio of less than 1.0 will typically require 12 months of reserves. You can still get approved for a lower DSCR ratio by choosing a 30 or 40 year interest only loan.

EXPERT REAL ESTATE FINANCING BLOG