All Forum Posts by: Laura Lewis

Hi Laura! DSCR is a type of investment property loan that lenders use to evaluate the cash flow from a property relative to its debt obligations, rather than primarily focusing on you, the borrower's personal income.

Down payment: Expect to need at least 20% to 30% as a down payment, though this can vary by lender and property type.

Interest rate: Interest rates for DSCR loans are typically higher than those for conventional loans because lenders view them as higher risk. The exact rate can vary based on the lender, the borrower's creditworthiness, and the specific property. 

Approval will be based on income potential of property, your credit score, appraisal, down payment, the DSCR ratio - there are quite a few factors that play into the approval. 

I am an investor and lender, if you want to chat more specifically about your situation and options, feel free to shoot me a message. I'm also just across the bridge in Saint Pete :) 

Hi - you've come to the right place - see below for a comprehensive 10-part article series on published here on BiggerPockets last year on everything you need to know on DSCR Loans!

One note - you put "Home" loan in the title - to clarify, DSCR Loans are 100% no ifs ands or buts rental properties only - so no owner-occupied at all, not even if its multi units and some of the units are rented.

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

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

DSCR Loans: How To Use Pro Strategies To Save More And Make More

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

Multifamily DSCR Loans: A New High-Impact Loan Option For Real Estate Investors?

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

12 Frequently Asked Questions (And Answers) About DSCR Loans

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

8 More Commonly Asked Questions and Answers to DSCR Loans

https://www.biggerpockets.com/blog/eight-questions-and-answe...

What Documents Do You Need for a DSCR Loan?

https://www.biggerpockets.com/blog/what-documents-do-you-nee...

BRRRR Loans: What Are the Options, and How Do DSCR Loans Stack Up?

https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

Short-Term Rental Loans: What Are the Options and How Do DSCR Loans Stack Up?

https://www.biggerpockets.com/blog/short-term-rental-loans-a...

DSCR Loans: Terms to Know When Working With These Popular Rental Loan

https://www.biggerpockets.com/blog/dscr-loans-terms-to-know

What’s Next For DSCR Loans? Updates For 2024 and Beyond

https://www.biggerpockets.com/blog/what-is-coming-in-2024-fo...