DSCR loans prioritize a property’s income potential over an investor’s personal income, making them ideal for LLC-held properties.
DSCR Formula: Rental Income ÷ (Principal + Interest + Taxes + Insurance + Association Dues)
For example, a property with $100,000 annual income and $50,000 in expenses has a DSCR ratio of 2.0, signaling strong profitability.
Rising rental demand and evolving investor needs have solidified DSCR loans as a top financing option.
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DSCR loans are ideal in a market with rising rental demand and housing affordability challenges. Investors benefit from flexible terms and competitive rates.