DSCR Loans: What Are They And How To Get The Best Terms

[Robin Simon]

Sharing with this forum - today's featured article I wrote for BiggerPockets all about DSCR Loans:

In recent years, a fairly new loan product: Debt Service Coverage Ratio (DSCR) loans, has become enormously popular with real estate investors. DSCR loans have become a critical tool for investors on track to achieve their dreams of financial freedom.

These loans, meant specifically for investment properties only, are so effective and popular because they require no income verification (or Debt-To-Income Ratio) and no tax returns or endless paperwork. Further — while the qualification and documentation are much less than conventional mortgages — the interest rates are just barely higher (typically less than 1% more). These loans offer fixed rates for 30 years, including options where it’s interest-only for the first 10 years, so you avoid the payoff and refinance pressure that often comes with hard money alternatives.

Put together, it’s no wonder why investors have flocked to these loans to scale their portfolios and achieve their dreams of financial freedom.

How Do You Qualify For a DSCR Loan?

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https://www.biggerpockets.com/...

[Eliott Elias]

Why hasn't hard money seen the same spike DSCR has in interest rates?