What is a DSCR Loan?

What is a DSCR Loan?

Joel Roth Joel Roth

Joel Roth

Residential & Commercial Mortgage Loan Officer @ Landstone Capital Group #1840421 | NMLS #2322798

Published Sep 26, 2023
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Here is another example of a Non Qm programs.

So a DSCR loan basically means as follows The Debt service meaning the mortgage payments is covered by the the rental income.

so if the rental income is lets say $3,500 and you mortgage payments comes out till $3,500 you qualify but on a DSCR program rates are higher then conventional programs. So you might ask why would i take a loan with higher rates? The answer is that you don't need to show any tax returns no income verifications, and you can close on LLC. the only thing you will need to show is proof of funds for closing costs. obviously there are pros and cons to everything thats why speaking with the right MLO is key.

Pro's

  • No income verification

  • No tax returns

  • No personal guarantee you can close on a LLC

Cons

  • Higher Rates

  • More % down

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