DSCR Loans
Debt Service Coverage Ratio Investment Financing
DSCR Loans
At SRK CAPITAL, we specialize in lending solutions designed for real estate investors. Our Debt-Service Coverage Ratio (DSCR) Loans stand out as a game-changing solution for property investors. These loans use the income generated by an investment property rather than relying on your personal income. Thus simplifying the loan qualification process and allowing you to grow your property portfolio with ease.
Ready to Invest?
Our team specializes in helping real estate investors secure DSCR financing for their investment properties.
What are DSCR Loans?
DSCR loans are designed specifically for real estate investors. Instead of relying on personal income, a lender uses the property's rental income to qualify the loan. Lenders calculate the DSCR by dividing the property's rental income by the total debt payments. If the property's income covers the loan payments, you're on your way to loan approval.
DSCR Calculation
Net Operating Income ÷ Total Debt Service = DSCR Ratio
Property Focus
Qualification based on rental income, not personal income
This type of loan is ideal for property investors who expect a streamlined loan program. DSCR loans work whether you own multiple properties or are just getting started on your real estate empire.
Why Choose a DSCR Mortgage Loan?
No Personal Income Documentation Required
You don't need tax returns, W-2s, or pay stubs to qualify. This saves time and simplifies the process.
Key Benefit: Faster approval process for experienced investors
Focus on Property Cash Flow
The loan income qualification is based on the rental income, not your personal income.
Faster Qualification Process
Without the need for personal income verification, getting the loan completed is a quicker process.
High Loan-to-Value (LTV) Ratios
With this type of loan, you can finance up to 85% of the property's value. This lets you leverage your money more effectively.
Flexible Loan Terms
You can choose from fixed, adjustable rate, or interest-only options. Terms can be customized to fit your investment strategy.
Perfect for Real Estate Investors
DSCR loans are designed specifically for investment property financing, making them ideal for building your real estate portfolio.
How Do DSCR Loans Work?
The process starts by calculating the DSCR of your property. A DSCR of 1 means the rental income equals the loan payment. Many lenders need a ratio above 1 to approve the loan.
Here's an example:
Monthly Property Expense Breakdown:
Monthly Expenses:
- Principal & Interest:$1,900
- Property Tax:$400
- Insurance:$200
Total:$2,500
Monthly Income:
Rental Income:$3,000
DSCR Calculation:
$3,000 ÷ $2,500 = 1.2
✓ In this case, the DSCR is 1.25, which shows the property generates enough income to cover the loan payment with extra room to spare. ✅
Who Benefits from These Loans?
Real Estate Investors
Whether you're buying your first property or your fiftieth, DSCR loans make it simpler to qualify.
Self-Employed Borrowers
Traditional loans need proof of steady personal income. DSCR loans bypass this, focusing only on the property's income potential.
Seasoned Investors
If you're building a portfolio, DSCR loans allow you to scale your quickly. All without many of the limitations oftraditional income-based financing options.
Investors with Complex Finances
Multiple income streams can complicate traditional mortgage applications. DSCR loans simplify the process.
DSCR Loans: Built for Real Estate Investors
Whether you're a seasoned investor or just starting your portfolio, DSCR loans provide the flexibility and efficiency you need to grow your real estate investments.
Advantages of DSCR Loans
Build Wealth Faster
This loan allows for a higher Loan to Value (LTV). This lets you buy more properties with less cash upfront.
Streamlined Process
Fewer income documents means a faster timeframe to loan approval.
Focus on Investment Goals
This type of loan was created with property investors in mind.
Less Limits on Property Count
Traditional loans often restrict the number of financed properties. Many DSCR loans don't.
Why Investors Choose DSCR Loans
DSCR loans offer the flexibility and speed that real estate investors need to capitalize on opportunities quickly, without the traditional income documentation requirements.
Learn More About DSCR BenefitsRequirements for DSCR Loans
While DSCR loans are flexible, there are still requirements to meet.
DSCR Ratio
Most lenders need a DSCR anywhere from .75 to 1.25. Sometimes, lenders offer a No Ratio programs, but those will typically have a higher rate.
Down Payment
A down payment of 20-25% is standard.
Reserves
Monthly PITI reserves vary, but you should expect 6 to 12 months. It will depend based on what ratio and down payment you intend to go with.
Property Appraisal
The property must be appraised to confirm its value and rental income potential.
Simplified Qualification Process
Unlike traditional loans, DSCR loans focus on your property's income potential rather than your personal income, making qualification straightforward for investors.
Min DSCR Ratio
Min Credit Score
Min Down Payment
Common Questions About DSCR Loans
Why Choose Us?
SRK CAPITAL is committed to providing a seamless mortgage experience, tailored to your needs and financial goals.
Your Trusted Partner in DSCR Loan Financing
Get the Best Rates in the Market
Save money with our competitive rates
Seamless Mortgage Experience
Experience a seamless mortgage experience from our team
Find the Perfect Loan for You
Discover flexible loan options to suit your financial goals
Guidance from Mortgage Experts
Get expert advice from our experienced team
Experience the SRK Difference
With our proven track record and dedicated team of experts, we make DSCR loan financing simple, fast, and reliable for real estate investors.
Ready to Begin?
Easy Steps to Acquire Our DSCR Loans
To get started, simply reach out to one of our team today for a personalized consultation. We will guide you through the mortgage process, from start to finish. And we are committed to helping you choose the best loan program for your financial goals.
Explore
Browse through our diverse range of mortgage products to find the ideal fit for your needs.
Apply
Our streamlined application process ensures a hassle-free experience when applying for a mortgage loan.
Consult
Consult with our experts to learn more about fixed rate loans and make informed decisions for your mortgage.
Calculate
Speak to our team to a detailed monthly mortgage payment breakdown so you can plan your finances effectively.
Pre-Approval
Gain a competitive edge in the real estate market by getting pre-approved for your mortgage with SRK CAPITAL.
Ready to Get Your DSCR Loan?
Our team of experts is ready to guide you through the entire process. Get started with your application today and unlock the potential of your investment property.
The SRK CAPITAL Difference
Our team is ready to help you finance your next investment property. With our team of experts and extensive lender network, we'll make sure you get the best mortgage possible.
Expert Guidance
Dedicated team with years of DSCR loan expertise
Personalized Service
Tailored solutions for your investment goals
Proven Results
Track record of successful loan closings
ContactSRK CAPITALtoday to learn more about ourDSCR loans. Learn how they offer you smart way to expand your property portfolio.
SRK CAPITAL – Your Partner in Real Estate Investment Success.