DSCR Loans

With DSCR Loans, you can enjoy flexible financing options tailored to your real estate goals. Whether you’re renovating a property, financing a new building, or need a bridge loan, our experienced team is here to help you secure the capital you need.

Understanding DSCR Loans: Calculating Debt Service Coverage Ratio

A DSCR loan, or Debt Service Coverage Ratio loan, is a type of financing option that evaluates a borrower’s ability to repay the loan based on their income and existing debt. It is calculated by dividing the borrower’s net operating income by their total debt service.

Why DSCR?

DSCR loans provide a comprehensive assessment of a borrower's financial capability to repay the loan.

How It Works

DSCR loans consider both the borrower's income and existing debt to determine loan eligibility.

Flexible

Streamlined Application and Approval Process for DSCR Loans

Applying for a DSCR loan is quick and easy. Our experienced team will guide you through the process, ensuring a smooth and efficient experience.

Fast and Reliable Funding Solutions

We understand the urgency of your real estate goals. That's why we offer fast and reliable funding solutions to help you achieve them.

Competitive Interest Rates

Our DSCR loans come with competitive interest rates, ensuring that you get the best financing options available.

Flexible Repayment Terms

We offer flexible repayment terms tailored to your specific needs, giving you the freedom to manage your finances effectively.

FAQs

Find answers to frequently asked questions about DSCR Loans.

What is a DSCR Loan?

A DSCR Loan, or Debt Service Coverage Ratio Loan, is a type of loan that assesses the borrower’s ability to generate enough cash flow to cover the loan payments. It is commonly used in commercial real estate financing.

How is DSCR calculated?

DSCR is calculated by dividing the property’s net operating income (NOI) by the total debt service. A DSCR of 1 or higher indicates that the property generates enough income to cover its debt obligations.

What is a good DSCR?

A good DSCR typically falls between 1.25 and 1.5. This means that the property’s income is 1.25 to 1.5 times higher than its debt obligations, providing a comfortable margin of safety for lenders.

How does DSCR affect loan approval?

DSCR is an important factor that lenders consider when approving a loan. A higher DSCR indicates a lower risk for the lender, making it more likely for the loan to be approved.

Can I improve my DSCR?

Yes, you can improve your DSCR by increasing the property’s income or reducing its debt obligations. This can be done through strategies such as increasing rental rates, reducing expenses, or refinancing the loan.