DSCR loans prioritize a property’s income potential over the borrower’s personal income, simplifying qualification for LLC investors.
DSCR Formula: Rental Income ÷ (Principal + Interest + Taxes + Insurance + Association Dues)
Lenders typically require a DSCR ratio of 1.25 or higher, signaling a property’s profitability.
Flexibility, streamlined approval and investor-friendly terms make DSCR loans attractive in 2024.
Low housing affordability drives rental demand, making DSCR loans ideal for long-term rental investments.
Leverage DSCR loans to scale rental portfolios efficiently amidst rising rental demand and steady property appreciation.