Credit Score Mistakes with DSCR loans

DSCR loans are a game-changer for real estate investors. DSCR loans are a game-changer. However, there are 4 credit score mistakes with DSCR loans that you need to be on the look out for! This includes cash flow, LTV, approval, and options. Let’s take a quick look at each of these to see how they can impact you! 

First, Cash Flow

First and foremost in order to qualify for a DSCR loan your property needs to cash flow. The better your credit score, the better your interest rate on your loan. 

Second, Loan to Value (LTV)

Your credit score also affects how much you need to put down on a property. By having a strong credit score you will not have to put as much down compared to those with lower scores. 

Third, Approval

A higher credit score makes it easier to get a DSCR loan approved. Lenders view you as less risky, which in turn increases chances for approval.

Fourth, Options

With a high credit score you will be able to find more lenders who are eager to offer you a DSCR loan. Those with lower credit scores will have fewer lenders who are willing to work with their scores. 

Contact Us Today! 

Is a DSCR loan right for you? Contact us today to find out more about credit score mistakes with DSCR loans.

Free Tools For You! 

We also have free tools available! Download the DSCR Quick Calculator to see if a DSCR loan is the best option for your investment properties! 

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