DSCR Loans

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What Is A Non-QM DSCR Loan?

What if we told you that you could apply for a loan without having to furnish tax returns, pay stubs, or income proofs? With a Non-QM DSCR loan, this is possible. You can get loans up to $3 million and avoid time-consuming approval processes by going through the DSCR route with SYLA Lending. 

What is the meaning of DSCR?
Extremely popular in the world of real estate investments, DSCR stands for Debt Service Coverage Ratio. It is a ratio that lenders often use to determine whether the income generated from an investment property will be enough to make timely debt payments. Therefore, whether you qualify for a loan is decided on the basis of your property’s cash flow projections, not your income.

RATES STARTING AT 5%

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How Does A DSCR Loan Work?

The Debt Service Coverage Ratio is prevalent among established and first-time real estate investors looking to jump into the rental property space. However, many people looking for home financing and apartment loans also opt for it as the entire process is speedy and the rates are great.

The DSCR calculation formula involves assessing your property’s net operating income and then dividing it by the total debt service or debt obligations (including principal and interest). To qualify, the revenue generated from the property must satisfy or surpass the lender’s DSCR loan requirements and ratio expectations. Here is a sneak peek at how your DSCR is calculated:

  • Less Than 1: Your property’s cash flow is on the negative side and you may not have access to financial resources to take care of your debt.
  • Equal To 1: You will have access just to the right amount of funds for your debt servicing needs. However, you won’t have a cash cushion. 
  • More Than 1: Cash flow will be great and you will have a substantial income to make debt payments on time.

If you are interested to know whether signing up for a DSCR loan is viable for you or your business,
​contact SYLA Lending’s experts or just drop a message!

Advantages Of DSCR Loans

In addition to the process being less time-consuming than traditional loans, DSCR loans has many benefits for their end-users. In the long run, this approach saves time, and in many cases, money.

  1. Super Fast Processing Time: Non-QM DSCR loans are processed in less than 2 weeks; a far cry from conventional real estate investment loans!
  2. Flexible Payment Options: Multiple loan payment programs — fixed rate, adjustable rate, and interest-only mortgages — based on your individual needs and payment preferences.
  3. Less Documentation: Why go for conventional loans when you can get one without income proofs or job history verification roadblocks? That’s right!
  4. Multiple Investment Avenues: DSCR loan programs help finance multiple property types that standard loans might not cover. No limits on properties you can own!

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Eligibility — How To Qualify For A DSCR Loan?

Whether you are a first-time home-buyer, want to purchase a rental property, or have your eyes on a single-family home/condo/2-4 unit homes, the DSCR loan program can be a perfect fit for your real estate investment needs. The minimum credit score required is usually 640, but SYLA Lending takes it on a case-by-case basis so that you do not miss out on your investment dreams. You also could be eligible for LTV ratios as high as 80%.

Did you know that LLCs can also apply for DSCR mortgages to own properties, a feature generally absent in conventional loan mortgages? Moreover, SYLA Lending lets you finance as many rental properties as you want with DSCR loan programs. Our lending services can prove to be the key to growing your real estate investment portfolio at a rapid pace.

Where To Get A DSCR Loan?

SYLA Lending will find you the right bridge loan option to fit your needs. Our mission is to make non-QM lending a hassle-free process. Do you need help applying? Want to know whether you can be eligible for a DSCR loan with bad credit? Unsure if this is the right financial instrument for you? Our experts are here to answer your questions and walk you through everything!
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Better Rates than Hard Money Loans

Our loan programs may save you up to 50% on your current financing options