Investor Cash Flow (DSCR) Loans 🏢💰

**Investor Cash Flow (DSCR) Loans:**
Debt Service Coverage Ratio (DSCR) loans are specifically designed for real estate investors who prefer not to use their tax returns to qualify for purchasing investment properties.

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**The Basics of DSCR:**
From a lender's perspective, DSCR refers to the borrower's ability to repay a loan based on the property's monthly rent. It’s essentially a measure of cash flow. Each lender may calculate DSCR differently, and the minimum requirements often vary.

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**What is DSCR?**
The debt service coverage ratio is the property’s annual net operating income (NOI) compared to its annual mortgage debt service (annual debt obligation for the property). Lenders use DSCR to qualify borrowers for real estate investment loans as it determines the borrower's ability to repay the loan, also known as income coverage.

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**Why Choose a DSCR Loan?**
Real estate investors often write off many expenses on their rental properties, making a DSCR loan more appropriate and easier to qualify for.

 

Other benefits include:
**No Limit on Financed Properties:** Unlike Fannie Mae and Freddie Mac, DSCR loans have no limit on the number of financed properties.
**Commercial Entity:** You can close these loans in a commercial entity such as an LLC.
**Flexible Requirements:** We can write loans even with zero DSCR (Negative Cash Flow Permitted), including vacant properties.

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**What is a Good DSCR?**
While it varies between lenders, typically:
**Above 1.2:** Usually considered good.
**Above 1.5:** Considered great.
**1.0:** Means the investor is getting exactly the same amount of rent as their monthly payments.

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**Calculating DSCR:**
We calculate DSCR by dividing PITIA (monthly principal, interest, taxes, insurance, and association dues) by the gross monthly rent. We also offer a No DSCR program, which can be very beneficial for Airbnb, VRBO, or short-term rental properties.

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**Benefits of DSCR Loans:**
- No limit on financed properties
- Can close in a commercial entity (LLC)
- Loans available even with zero DSCR (Negative Cash Flow Permitted)
- Suitable for vacant properties

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**Contact Us:**
Get in touch with us today to discuss this amazing program and see if you can take advantage of this fantastic product!

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**Ready to make your investment buzz? Let's get started!** 🏠💼