The amount you can borrow on a DSCR loan depends on the DSCR ratio set by the lender, which involves your property's net operating income. Typically, lenders look for a DSCR ratio greater than 1 to 1.25, allowing for a loan amount where the property's income can cover the debt service with a buffer.

Can anyone get a DSCR loan?

Not everyone can get a DSCR loan; eligibility typically depends on the property’s potential income, the borrower's creditworthiness, and other financial criteria set by the lender. It's primarily for real estate investors with good financial standing.

Do DSCR loans require 20% down?

Down payment requirements for DSCR loans can vary widely depending on the lender's policies and the specific circumstances of the loan. While it is common to see down payments of 20-25%, it is not a strict rule and could be more or less.

What is a good DSCR for real estate?

A good DSCR for real estate is generally 1.25 or higher. This indicates that the property is generating 1.25 times the annual debt service, providing a cushion in case of unexpected events or vacancies. It shows the lender that the borrower has a solid ability to repay the loan.

Not everyone can get a DSCR loan; eligibility typically depends on the property’s potential income, the borrower's creditworthiness, and other financial criteria set by the lender. It's primarily for real estate investors with good financial standing.

Down payment requirements for DSCR loans can vary widely depending on the lender's policies and the specific circumstances of the loan. While it is common to see down payments of 20-25%, it is not a strict rule and could be more or less.

A good DSCR for real estate is generally 1.25 or higher. This indicates that the property is generating 1.25 times the annual debt service, providing a cushion in case of unexpected events or vacancies. It shows the lender that the borrower has a solid ability to repay the loan.