DSCR/No Income Doc
Debt Service Coverage Ratio (DSCR) Loans
DSCR Loans allow real estate investors to qualify for a mortgage based upon the cash flow generated by your investment property rather than using proof of income, tax returns, employment information for verification, etc.
DSCR loan qualification is based upon the property not the person. This is a less taxing documentation process for the investor and there are less requirements and rules than conventional loans.
Benefits and Advantages of DSCR Loans
Here are the most important benefits and advantages of a DSCR Loan:
- Personal Income is not a consideration; instead, investors qualify and borrow is based upon property cash flow making enough money to cover the PITIA.
- Faster closing times in some instances, due to streamlined application information based upon property not a deep dive into the individual’s personal finance and job history.
- One major benefit of a DSCR Loan is the Unlimited Cash-Out factor, a great option for investors to keep their real estate investment assets liquid.
- Rapid scalability of one’s real estate portfolio, as investors can commit to additional loans and acquiring multiple properties simultaneously.
- It is great for bulk purchases of large portfolios.
- Many investors expense rental property repair costs rather than depreciating them. This can often be a challenge when pursuing conventional loans. That is no problem with DSCR loans.
Are you ready to start owning rental homes using rental property loans? Would you like more information about DSCR loans? Would you like to check to see if DSCR loan rates today are a good fit for your real estate investment strategy?
At Catalyst Funding, we are your one stop shop for all of your real estate investment needs. Call today so we can help start your path to financial independence.
For investors who are new to real estate financing, Catalyst Funding offers one-on-one consultations to discuss your goals and expectations for new projects. When it’s time for your loan to close, here is what we need:
- Proof of funds (minimum six months of interest payments)
- We will run your personal credit (no minimum FICO required)
- LLC, LP or Corporation documents (if applicable)
- Property purchase agreement (if you already have a deal)
- Property rehab scope of work (if you already have a deal)