The loan program for investors that has gained alot of popularity lately, DSCR loans, or Debt Service Coverage Ratio loans. These loans have become extremely popular with investors for their easy closing, NO Income documentation, and rates similar to FNMA Conventional loans. Perks of the DSCR loan, you can close in a newly established LLC, there is no limitation to the number of properties you have, the reserve requirements are far less than traditional Conventional loans, NO Income documentation needed ( no tax returns, no pay stubs, no W2’s) Perfect for that self employed borrower or full time investor, or any person just not wanting to go through the hassle and probing of a standard Conventional loan. Also if you close in your LLC the loan does not appear on your personal credit report. DSCR loans do come with a prepay penalty, However, that can be bought down or completely done away with depending on your goals with that rental property. AirBnB no problem. If you haven’t considered DSCR loans, now is the time, it’s not the old alternative High Rate, High Prepay Penalty loans when you don’t qualify for Conventional. NOW you can get Conventional rates with a fraction of the underwriting. Give me a call at Capital Concepts and I can get you started on your next investment.
