DSCR vs Conventional

[Jeremy Shaffer]

Currently looking at buying a duplex in the Fort Worth area. I have 1 rental property at the moment. I am wondering if I should do a DSCR for the new property, that will cash flow vs a conventional. Is DSCR simply worth it for the convenience and the fact that I will likely refinance in 5 + years when the 5 year pre-pay penalties are gone and rates are hopefully lower.

[Carrie Matuga]

@Jeremy Shaffer DSCRs typically have fairly stiff prepayment penalties and come with rates that are 1-1.5% higher than conventional. That said there are some huge advantages, too:

- Quicker closing times

- No income or DTI ratios

- No loan count limits

- Owned by your entity and don't appear on your own credit

I personally always use DSCR loans for my buy and hold properties because of the flexibility, Feel free to DM me and we can talk about your property.