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Updated almost 3 years ago on . Most recent reply
ARM loans vs. DSCR loans
Can anyone tell me which one of these loans is better for an apartment building? What are the key differences in terms compared to each other? Can someone also describe the process of obtaining either loans?
Thanks!
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#4 Mortgage Brokers & Lenders Contributor
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ARMs and DSCR loans are two different things.
A DSCR loan is a type of loan that doesn't require income verification for the borrower. The income for qualification is derived from the rents or the market rent.
An ARM is an adjustable rate mortgage meaning the rate adjusts over a set time period. You can get an ARM for a DSCR loan although a 30 year fixed and lately, an interest only loan, are more popular.
You need to contact a mortgage broker that's familiar with the process so they can assess your particular situation and find out what type loan is right for you.
Stephanie