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Updated about 2 years ago,
DSCR Loan pegged on PITIA
Does anyone out there know if there is a DSCR loan that has its repayment amount based on cash flow of the property? I am talking about something like ARM loan, but instead of having floating interest rate pegged on some kind of prime rate, the floating amount is based on the cash flow of the rental property (assume the rent can be verified)
If a property generates high enough rent to cover all expenses and some, a loan with repayment amount pegged on rent might yield a higher return for the lender in the long run and still be attractive enough to borrowers given that rent generally increases over time