DSCR Loans

What is DSCR Loan?

With a DSCR loan, property qualify itself! No W2, pay stubs or tax returns required.

DSCR = Rental Income / Proposed PITIA (Principal, Interest, Taxes, Insurance, and Assessments)

Calculation Details:

  1. Rental Income Determination:

  • For long-term lease properties: Use the lower of:

    • Lease agreement amount
    • 100% of market rent from appraisal Form 1007

  • For unleased properties:

    • Use 100% of market rent from appraisal Form 1007 (Yellow/Pink programs)
    • Use 75% of market rent from appraisal Form 1007 (Blue program)

  • For short-term rental properties:

    • Purchase: Use 100% of market rent or 12 months of actual rental history
    • Refinance: Use 12 months of actual rental history

  1. PITIA Calculation:

  • Include the proposed monthly principal, interest, taxes, insurance, and assessments
  • For Blue program, property management fees must also be included in PITIA

  1. DSCR Minimum Requirements:

  • Yellow Program: Minimum DSCR of 0.00
  • Orange Program: No minimum DSCR
  • Pink Program: Minimum DSCR of 1.00
  • Blue Program: Minimum DSCR of 0.80

Example: If monthly rental income is $2,000 and monthly PITIA is $1,800, the DSCR would be 1.11 (2,000 / 1,800) And you qualify for your purchase of rental property or refinancing.

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DSCR  Purchase 

Purchase your rental with only 15% down payment

With Rental Income Only

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We make the mortgage process easy.

Our digital mortgage will help find you the best rate with fast closing. Select your loan type below to get started.

 

Another Amazing DSCR Loan Program

For

Short Term Rentals 

38439 Short Term Rental

At Desi Mortgage Broker - MAC REAL ESTATE SERVICES, we pride ourselves on offering tailored solutions to make your property dreams come true. One of our standout products is the Debt Service Coverage Ratio (DSCR) loan. Here’s why it might be just what you’re looking for!

Understanding DSCR Loans

Have you ever wondered if a property or business can comfortably handle its loan payments? That’s where the DSCR comes in! In simple terms, it’s a tool that shows how much a property or business earns compared to its loan payments.Why Consider a DSCR Loan?

  1. Confidence in Investment: A DSCR loan ensures that the property or business you’re investing in has a proven track record of earning more than it owes.
  2. Transparency: We believe in clear communication. With DSCR, you know exactly where you stand, ensuring there are no surprises down the line.
  3. Flexible Options: Every individual and business is unique. DSCR allows us to provide loan options that fit perfectly with your financial situation.
  4. Peace of Mind: Sleep better knowing that your investment is backed by a method that prioritizes your financial well-being.

Ready to Dive Deeper?If the DSCR loan sounds like the right fit for you, or if you’re curious about our other products, reach out today! Our expert team at Desi Mortgage Broker - MAC REAL ESTATE SERVICES is ready to guide you every step of the way.

Apply Now!