Understanding DSCR Loans

DSCR loans prioritize a property’s income potential over an investor’s personal income, making them ideal for LLC-held properties.

DSCR Formula

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.

Why DSCR Loans Are Gaining Popularity

Rising rental demand and evolving investor needs have solidified DSCR loans as a top financing option.

Pros and Cons of DSCR Loans

Pros:

• No personal income requirements.
• Simplified documentation and quicker approvals.
• No penalties for using tax strategies.

Cons:

• Requires a credit score of at least 620.
• Down payment of 15-20% typically required.
• Best suited for rental properties, not flips.

Private Lenders: The Key to DSCR Success

• Streamlined approval processes.
• Tailored financing options for specific needs.
• Opportunities to scale investment portfolios.

Why DSCR Loans Are Perfect for Today’s Market

DSCR loans are ideal in a market with rising rental demand and housing affordability challenges. Investors benefit from flexible terms and competitive rates.

RBK GFS: Your Partner in DSCR Financing

• No W2s, paystubs or tax returns required.
• Competitive 30-year term options.
• Flexible solutions for single-family homes, condos, townhomes, and multi-unit properties.