How DSCR loans are great for rental properties

Welcome to Prime33 where you are not just another number to us.

Most wealthy folks will tell you it all started with that first property. The latest and hottest trend in 2022 is to get a rental property. The unique thing with rental properties they are often valued on their income flow, not just the market value. In most cases, this is an amazing place to start or continue building wealth over time.

At a glance, this might seem difficult however we found that the hottest loan trending lately has a silly acronym DSCR (debt covered Service Ratio) In short this just means that you are using the income on the home to qualify for the loan instead of having to worry about “do I qualify?” Well no traditional debt-to-income ratio (DTI) to worry about with this loan.

It’s as easy as one, two, three.

  • 1: Down payment 20 percent in most cases plus closing costs and prepaid Loan amounts up to 5M
  • 2: Your bank statement (showing your down payment) 2 months. No Tax returns or personal income verification
  • 3: And your good credit (640 or higher) history.

A Prime33 Example: You want to buy a lakeside resort-style single or multiple-unit home for around 500,000 dollars. With 20 percent down or 100,000 dollars plus closing costs (budget about 120,000 all in) and carry a loan for 400,000 dollars. In this scenario, we are going to use the projected rents to qualify you for the loan. That and your good credit history and down payment are all that are needed.

As long as the rent on the property is enough to cover the payment along with the monthly tax and insurance then viola you qualify. It really is that simple.

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