Need a DSCR Loan?
30-Year Fixed Rate • Purchase or Refinance • 1-4 Unit Properties • No Personal Income Needed
Park Place Finance Can Fund Your Next Transaction
When other lenders are too rigid in their pre-qualifications, or are moving too slowly for your needs, Park Place Finance can step in to fill the gap. Put our speed, responsive service and straightforward loan products to work for you.
The 30-year fixed rate DSCR loan is designed to assist real estate investors with their long-term rental properties. As an investor you might be focused on the monthly profit a tenant can provide, as well as the long-term appreciation of the property itself. These loans are only for investment properties, not primary residences.
DSCR stands for debt service coverage ratio and looks at your monthly income divided by monthly expenses. More specifically, it is calculated as your monthly rent you bring in divided by PITI (payment, interest, taxes and insurance). A DSCR above 1.0 means you are making a monthly profit, and a DSCR below 1.0 means you are losing money. Park Place Finance will lend on DSCR 0.80 and above.
These loans differ from conventional loans in a number of ways. To qualify for a DSCR loan, we take a look at the property and the borrower. The property is vetted based on location and the forecasted monthly profit. The borrower needs to meet the minimum credit requirement, have sufficient liquidity, have a background check, but no pay stubs or W-2’s are required. We do not look at the borrowers DITI ratio. Another important thing to note is that a DSCR loan can vest into an LLC, rather than an individual’s name. They can also close much quicker than a conventional loan, which often takes 30-60 days to close. With a conventional loan, you are capped at 10 properties to your name. With a DSCR loan, there is no limit to the number of properties you can own.
Your Investment Property Loan Can Be Used For
Simple Answers to Common Questions
We have multiple partners, and only one of our partners has a 660+ credit score. Is this ok?
Yes! As long as at least one has a 660+ credit score we can usually get you qualified. The same applies to criminal history or foreclosures. As long as one partner is ok, then this generally is not an issue.
I have an investment property owned free and clear, and need to pull cash out. Can you assist?
Yes! In additional to traditional lending products, we can also offer hard money loans for cash out purposes. We generally will lend to 70% of the value, with exceptions to 75% of the value for highly qualified individuals.
What kind of properties are eligible for your loans?
Most residential properties including single family, condominiums, townhouses, 2-4 unit properties, and even large apartment complexes. We do not lend on ground up construction at this time, and generally we only lend in cities, not rural areas. However, we can lend in suburban cities as well as small towns. Call us for details or a quick address check.
These must be investment properties for the duration of our loan, as we do not offer hard money on primary residences.
Where do you lend?
We lend in 45 states, and the property cannot be located in a rural area. However, we can sometimes make exceptions on rural areas, so it is best to call us with the address to determine options.
What is your maximum loan amount? Your minimum?
Our minimum loan amount is $100,000 and we have programs for as high as $2,000,000. We treat each loan with the same urgency and integrity to get it closed on time, and honor our commitments to close once we approve you.
What are your loan terms?
All of our loans are No pre-payment penalty, interest only, and no escrows. Rates start at 7.99% but are generally between 8.99% and 12.99%, with 2-4 points.
What loan rates do you offer?
Our rates are straightforward, please call us for an exact quote.
What are your fees?
We charge 2-4 points, depending on risk factors. Our only other fees are:
- $1,295 underwriting fee
- $535 attorney doc prep fee
If I am purchasing the property with built-in equity, do I still need 20% of the purchase price down?
We require a minimum of 20% down payment regardless.
How long does it take to get a loan from you?
It typically takes 3 weeks to close a DSCR loan.
What is your loan application process like?
Very easy, just apply here.
How long have you been in business?
Park Place Finance has been in business since 2006 and helped countless investors fund their real estate investment properties all over the country.
Do you roll in closing costs?
We can roll closing costs in on both a rate/term refinance & cash out refinance. However, we are not able to roll in closing costs on a purchase. On a refinance, the only out of pocket expense is the appraisal, assuming we have enough equity. On a purchase, you will be required to pay all closing costs out-of-pocket.