💼 DSCR LOANS: A SMART WAY TO FINANCE INVESTMENT PROPERTIEs

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A DSCR loan evaluates whether a property's income is enough to cover its debt payments. It’s one of the most popular tools for real estate investors who want to scale faster and smarter.

DSCR Formula:
Net Operating Income (NOI) ÷ Debt Service = DSCR

Example:
If a property generates $100,000 in NOI and has $80,000 in annual loan payments, the DSCR is 1.25. This means the property earns 25% more than what’s needed to cover its debt—great news for both the lender and investor.

Lenders use the DSCR to gauge the risk of the loan. A higher DSCR means better ability to service the debt and may lead to:

• ✅ Lower interest rates
   
• ✅ Higher loan amounts
   
• ✅ Faster approvals
   

Minimum DSCR requirements vary by lender, but most look for at least 1.20 to 1.25.

DSCR loans are ideal for:

• Apartment buildings 🏘️
   
• Office buildings 🏢
   
• Retail centers 🛍️
   
• Industrial properties 🏭
   
• Mixed-use properties
   

Whether you're purchasing, refinancing, or cashing out, these loans are built for income-producing real estate.

DSCR loans are a great fit for:

• Real estate investors
   
• Commercial property owners
   
• Developers
   
• Business owners using LLCs
   
• Borrowers with limited personal income documentation
   

These loans focus on the property’s income, not your tax returns, making them popular in today’s investment landscape.

Every lender has unique guidelines. DSCR minimums, required reserves, property types, and terms can vary. Always work with a knowledgeable mortgage advisor who understands commercial and investment lending.

Whether you're buying your next investment property or refinancing for better cash flow, I’m here to help you navigate the process and secure the best possible terms.

👉 Let’s talk strategy—contact me today for a free consultation!