DSCR Loan Qualifications for Income: Can You Afford a DSCR?


How tough are DSCR loan qualifications for beginner investors? (You might be surprised…)

DSCR loans are becoming one of the most popular investor tools in the lending world.

But can you use them if you’re just a beginner? Let’s go over income and experience DSCR loan qualifications.

Are DSCR Loans Good?

Firstly, let’s go over what a DSCR loan is.

DSCR stands for “debt service coverage ratio.” They’re a loan for rental properties that are based on the debt ratio of rent income to the property’s expenses.

These loans can be flexible and hassle-free. This makes them the go-to choice for investors financing a rental property or turning a fix-and-flip project into a rental at the last minute in bad markets.

But are DSCR loans really as good as they seem? Let’s take a closer look at 5 reasons why DSCR loans are a solid choice for investors. 

DSCR Loan Qualifications for Experience

DSCR loans are great for new investors!

Traditional loans often require you have two years of real estate investing experience. But a DSCR loan has no requirements for experience. These types of loans focus more on your property or deal than on you personally as an investor.

Because there are no experience requirements, a DSCR loan is a great opportunity to get into your first investment rental property. Don’t wait to apply for your first DSCR loan.

Income DSCR Loan Qualifications

For DSCR loans, you don’t need a W2 job, show any tax returns, or hand over any other income documentation.

This means DSCR loans are good for minimizing your tax liability. You can write everything off, pay the IRS as little as you want, and still get a great loan.

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