Rates vary daily, but typically DSCR loans are .5% to 1.5% higher than a Conventional Loan. However, DSCR loans are much easier to qualify for given the fact they do not take into account your personal income.
There are plenty of options within a DSCR loan besides a 30 year fixed.– 5/1 ARM Options– Interest Only Options– Loan Portfolio options, where you combine rental income on multiple properties to qualify– Vest in a LLC or Personal Name– Prepay or No Prepay Options- Adding a prepay penalty generally helps with a better rate– Discount Points- The more you buydown the rate, generally the better your rate is– Cash out or Rate / Term Refi Options- Deciding on a refi whether to pull cash out or not
If your DSCR is below .75, then you may want to explore our bridge loan options until we can get the ratio lower. Our bridge loans do not take into account the DSCR ratio. Another option is to put more money down, or buy the rate down with discount points. All of these will increase the DSCR ratio that could help you qualify.
All of our DSCR loans require taxes and insurance to be escrowed, and paid monthly with our payment.
Our Bridge, Fix and Flip and Ground Up Construction loans do not require escrows.
