Book a Counseling Appointment
Empower Your Real Estate Portfolio Growth with Onyx Group Mortgage's DSCR Loan Solutions
For savvy real estate investors, securing financing based on property cash flow rather than personal income can be a game-changer. DSCR loans, or Debt Service Coverage Ratio loans, offer precisely that advantage. At Onyx Group Mortgage, we understand the unique needs of investors and provide tailored DSCR loan programs to fuel your real estate ambitions.
What are DSCR Loans?
DSCR Loans, or Debt Service Coverage Ratio Loans, are a specialized type of Non-QM loan designed for real estate investors. These loans assess your eligibility based on the property's projected rental income rather than your personal income. This makes them ideal for investors who may have multiple properties or whose income fluctuates, as their qualification hinges on the investment property's ability to generate sufficient cash flow to cover the mortgage payments.
What are DSCR Loans?
DSCR Loans, or Debt Service Coverage Ratio Loans, are a specialized type of Non-QM loan designed for real estate investors. These loans assess your eligibility based on the property's projected rental income rather than your personal income. This makes them ideal for investors who may have multiple properties or whose income fluctuates, as their qualification hinges on the investment property's ability to generate sufficient cash flow to cover the mortgage payments.
Income-Driven Qualification
DSCR loans evaluate your eligibility based on the projected rental income of the property you're purchasing or refinancing, rather than relying solely on your personal income or tax returns.
Focus on Cash Flow
The primary focus is on the property's ability to generate sufficient cash flow to cover its debt obligations, as measured by the Debt Service Coverage Ratio (DSCR).
Ideal for Investors
This makes them an excellent option for real estate investors who may have fluctuating or non-traditional income streams.
Schedule a Meeting
Get Expert Mortgage Advice.
Book Your One-on-One Consultation Now!
You have questions, we have solutions.
Book a Call
Strategy Call with undefined
undefinedMin Call
Select a Date
Select a Time
DSCR Loans Requirements (Debt Service Coverage Ratio):
Highlight of DSCR Loans:
Ideal for real estate investors, this loan focuses on the property's cash flow (debt service coverage ratio) rather than your personal income.
Income Qualification: Based on property's rental income, not borrower's personal income.
Minimum DSCR: As low as 0.75x, providing flexibility for investors.
Property Types: Single-family homes, multi-family properties (2-4 units), condos, and even condotels.
Investor-Friendly: First-time and experienced investors welcome.
Interest-Only Option: Available for qualified borrowers, offering lower initial payments.
Gift Funds: Allowed for down payment and closing costs.
Mixed-Use Properties: Allowed for 2-8 units and 5-10 residential units, with up to 75% LTV.
Reserve Requirements: 2 months of mortgage payments typically required. Benefits: Ideal for real estate investors who want to leverage property cash flow for financing.
Minimum Credit Score:
640
Maximum Loan Amount:
Up to $3 million.
Maximum LTV:
Up to 80% for most properties.
How Does the DSCR Calculation Work?
The core of a DSCR loan is the Debt Service Coverage Ratio, calculated by dividing the property's net operating income (NOI) by its annual debt service. A DSCR of 1.0 indicates that the property's income is just enough to cover its debt obligations. Lenders typically require a DSCR of at least 1.25 to ensure a safety margin. The higher the DSCR, the stronger the property's cash flow and the more likely you are to qualify for a DSCR loan.
Assess Your Financial Situation
Evaluate your income, debts, and savings to determine how much you can comfortably afford.
Understand Your Goals
Consider your long-term plans. Do you plan to stay in the home for a long time or sell in a few years?
Research Loan Options
Explore different mortgage types and compare interest rates, terms, and fees from multiple lenders.
Get Pre-Approved
Obtain a pre-approval letter to understand your borrowing power and demonstrate your seriousness to sellers.
Benefits of DSCR Loans
While specific qualifications vary by loan program, typical requirements for Non-QM Home Loans include:
Qualification Based on Property Cash Flow
Ideal for investors with multiple income streams or those whose personal income may not fully reflect their financial capacity.
Income Flexibility
Qualify based on the property's income potential, not your personal income.
No Personal Income Verification
Eliminates the need for extensive documentation of personal income, such as tax returns or pay stubs.
Streamlined Application Process
Simplifies the loan application process and potentially speeds up approval times.
Portfolio Expansion
Enables investors to grow their real estate portfolios without relying solely on personal income qualifications.
Higher DTI Ratios Allowed
DSCR loans may allow higher debt-to-income ratios than traditional mortgages.
Multiple Property Financing
Secure financing for multiple investment properties without relying solely on your personal income.
Fast and Efficient Closing
Streamlined approval process can lead to faster closings.
Who Qualifies for DSCR Loans?
Onyx Group Mortgage offers a diverse selection of Non-QM Home Loan programs:
Factors Affecting DSCR Loan Eligibility:
Property's DSCR
The higher the DSCR, the stronger your application.
Credit Score
While minimum credit scores may be lower than for traditional mortgages, a good credit score can improve your chances of approval and secure better terms.
Down Payment
A larger down payment can demonstrate your commitment and improve your DSCR.
Property Type
DSCR loans are typically available for residential investment properties, including single-family homes, multi-family units, and condos
Lender's Requirements
Each lender may have specific underwriting guidelines and DSCR thresholds.
Factors Affecting DSCR Loan Eligibility:
Property's DSCR
The higher the DSCR, the stronger your application.
Credit Score
While minimum credit scores may be lower than for traditional mortgages, a good credit score can improve your chances of approval and secure better terms.
Down Payment
A larger down payment can demonstrate your commitment and improve your DSCR.
Property Type
DSCR loans are typically available for residential investment properties, including single-family homes, multi-family units, and condos
Lender's Requirements
Each lender may have specific underwriting guidelines and DSCR thresholds.
Why Choose Onyx Group Mortgage for DSCR Loans
Expertise in DSCR Lending: Our team specializes in DSCR loans and understands the unique needs of real estate investors.
Access to Competitive Rates: We work with multiple lenders to find the most favorable rates and terms for your investment property.
Personalized Guidance: Our experienced mortgage advisors will guide you through the entire process, ensuring you make informed decisions.
Streamlined Application Process: We'll help you gather the necessary documentation and expedite the approval process.
Commitment to Your Success: We're dedicated to helping you build your real estate portfolio and achieve your investment goals.
Frequently Asked Questions
Anything Unclear or Need Some Help? Relax, We Are Here for You 24/7
Relax and take comfort in knowing that our 24/7 support ensures you're never alone on your financial journey.
Refinance Home Loans
Home Refinance Process
Cash Out Refinance
Investment Property Refinance
Reason to Refinance
Refinance Costs and Fees
Refinance Non QM Home Loans
Types of Home Financing
When to Refinance your Home
Non-QM Loans
DSCR Loans
Jumbo Non-QM Loans
1099 Loans
ITIN Loans
Bank Statement Loans
Asset Utilization Loans
Bridge Loans
P&L Loans
Home Purchase Loans
Fixed-Rate Mortgage
Adjustable Rate Mortgage
FHA Loan Requirements
VA Loan Eligibility
Jumbo Loan Options
Construction Loan Process
Bridge Loan for Homebuyers
First Time Home Buyer
Legal Disclaimer
Onyx Group Mortgage, a division of Ameritrust Mortgage Corporation (NMLS #217229), is located at 17341 Irvine Blvd., Suite 285, Tustin, CA 92780. Please note that Ameritrust Mortgage Corporation does not offer legal, tax, or financial advice, nor is it affiliated with any government agency. www.nmlsconsumeraccess.org.
© The Oynx Group LLC. All Rights Reserved - Powered by Maple54
- Contact Us
- Our Locations
- Business Hours Monday - Friday 8:00 AM to 5:00 PM PST
NMLS# 397532
(949) 396-1204
17341 Irvine Blvd, Tustin, CA 92780
hello@onyxgroupmortgage.com
Refinance Home Loans
Non-QM Loans
Home Purchase Loans
Legal Disclaimer
Onyx Group Mortgage is a division of Ameritrust Mortgage Corporation, NMLS #217229 located at 17341 Irvine Blvd., Suite 285, Tustin, CA 92780. Ameritrust Mortgage Corporation does not provide legal, tax, or financial advice or guidance and is not associated with any government agency. This is not an offer for an extension of credit nor a commitment to lend. Programs, rates, terms, and conditions are subject to change without notice. Certain restrictions may apply. All approvals are subject to underwriting guidelines and minimum credit requirements. Not all loans or products are available in all states. For current licensure information, please visit: www.nmlsconsumeraccess.org.
Terms & Conditions | Privacy | State & Licensing
© The Oynx Group LLC. All Rights Reserved - Powered by Maple54