Wisconsin DSCR Loans Guide 2024: Everything you need to know about DSCR Loans!

[Robin Simon]

Easy Street Capital is Wisconsin's leading DSCR Lender. With over 1,000 DSCR loans funded in the last year, we have helped real estate investors across the country achieve financial freedom through this popular loan product. DSCR Loans allow real estate investors to qualify with no W2, no tax returns and no income verification required! See below for a comprehensive guide for everything you need to know about DSCR Loans in Wisconsin!

Table of Contents:

• What is a DSCR Loan

• Who are DSCR Loans For?

• How do you calculate DSCR?

• What documents are required for a DSCR Loan?

• How to get the Best Rate and Terms for a DSCR Loan

• How Prepayment Penalties work for DSCR Loans

• Are DSCR Loans fixed or variable rate?

• Types of Properties Eligible for DSCR Loans

• Do all DSCR Lenders have the same qualification rules?

• DSCR Loans for Short Term Rentals

• DSCR Loans for BRRRR Method Investors

• Frequently Asked Questions about DSCR Loans

What is a DSCR Loan?

A DSCR Loan is a mortgage loan for a residential income-producing property. It is primarily based on the "Debt Service Coverage Ratio" or the cash flow of the property, rather than the borrower's income. A traditional mortgage loan will require income verification, tax returns and a "Debt-to-Income" (DTI) ratio. DSCR Loans require none of these! Perfect for real estate investors ready to scale (no more W2!) or are looking leave behind the hassle, paperwork and headaches of conventional financing, DSCR Loans are quickly becoming the go-to loan option for real estate investors. Read On for everything you need to know about DSCR Loans, including how to qualify, how to get the best rates and terms and answers to any and all frequently asked questions.

For a comprehensive definition, “DSCR Loans are mortgage loans secured by residential real estate turnkey properties strictly used for a business purpose and underwritten primarily based on the property.”

Note:

• Mortgage Loans = form of loan that is secured by collateral, collateral = real estate

• Residential Real Estate = properties used for people to live in vs. commercial, which is used to operate businesses (offices, retail, industrial, hotel, self-storage, etc.). In real estate finance, residential also typically refers to “1-4 unit” properties, anything more would be considered “multifamily”

• Business Purpose = DSCR loans strictly do not allow the owner of the property to live in the property, it must be used for "business" or investment purposes. Includes use of "cash-out proceeds"

• Underwritten = How lender evaluates (and then prices) the risk of the loan

• Primarily Based on Property = Mostly based on property, but also look at sponsor

• Turnkey = property doesn’t require any renovation, “turn the key and go”

Read On for everything you need to know about DSCR Loans, including how to qualify, how to get the best rates and terms and answers to any and all frequently asked questions.

Who are DSCR Loans For?

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