Debt Service Coverage Ratio Investment Loans In Florida
Debt Service Coverage Ratio Investment Loans In Florida
DSCR VS. Non-QM Loans
While DSCR loans are primarily for real estate investors, they still technically qualify as a non-QM loans. So, what’s the difference? Non-QM Loans are a solid option to consider for those who can qualify for a conforming loan that meets CFPB standards and are typically used by self-employed individuals for personal home purchases. DSCR loans are specifically geared towards the investment market and may have far less strict qualification requirements than traditional self-employed Non-QM loans.
FAQ's About DSCR Loans
What Is a Debt Service Coverage Loan?
Debt Service Coverage Ratio (DSCR) Loans are types of non-QM loans specifically designed for real estate investors. Without needing to verify income, lenders like us can use DSCR to determine whether or not a real investor has the ability to repay a loan. Conventional loans can be tricky to secure if you’re a real estate agent because of the numerous write-offs you make on your properties. So, DSCR loans can be a great way to get approved without needing traditional financing documentation.
Benefits of DSCR loans:
They don’t require proof of income via tax returns or pay stubs
Quicker closing times than typical conventional loans. You’re an investor, and time is money.
Unlimited number of properties (compared to VA loans, for example, which only permit one home loan at a time)
Loan amounts as high as $5,000,000 if financing a larger investment property.
As little as 20% down payments required
Both long-term and short-term rental properties are eligible. This means if you plan to rent your property through vacation rental online services you can.
Interest-Only options for 10 years
40-year options
Closes in an LLC
And more
Are you a real estate investor in Florida and think that a DSCR loan might make the most sense for your next investment property? Get in touch with our team of DSCR loan experts to see how to qualify today.
How do you qualify for a DSCR loan in Florida?
Securing a DSCR loan in Florida isn’t too much different than getting approved in other states. However, one thing to keep in mind is that property values could be different in Florida than elsewhere, which means that the average rent cost is also higher. You won’t need to provide us with the typical documentation required to qualify for a conventional loan (prior tax returns, pay stubs, W-2s, etc.) as long as you have an excellent DSCR ratio.
Your DSCR ratio is calculated by taking your net operating income then dividing it by total debt service (this figure includes principal and interest payments on a loan). For example, if a business has a net operating income of $200,000 and a total debt service of $125,000, its DSCR would be approximately 1.6.
Obviously, you want as high of a DSCR as possible and will almost certainly need above a 1 (and in many cases, 1.25) to indicate that you can bring in more money than you’re taking out in debt.
Find Debt Service Coverage Ratio Mortgage Lenders In Florida
Our team here at Leopard Lending SI works with Florida-based real estate investors and professionals every day on their DSCR loan applications. We guide you through the entire process and answer your questions along the way. Reach out today if you want to get started on a DSCR loan application for your next investment property.
Non-QM Loans for Borrowers with Low DSCR
If you’re a real estate investor with a low DSCR, a DSCR loan may not be the only option you can consider. You can look into alternative financing options such as asset-based loans, bank statement loans, interest-only loans, and recent credit event loans to see what you qualify for, even with a low DSCR.
Apply for Non-QM Investment Property Loan in Florida
Applying for a Non-QM investment property loan is straightforward. Get in touch with our team today to initiate the process, which is as simple as possible. You can reach out to have one of our team members contact you to schedule an appointment, or you can get your application started here.
Benefits of using a Debt Service Coverage Ratio Loan (DSCR)
There are many benefits of using DSCR loans for your real estate investments. The benefits include (but are not limited to):
They don’t require proof of income via tax returns or pay stubs
Quicker closing times than typical conventional loans. You’re an investor, and time is money
Unlimited number of properties (compared to VA loans, for example, which only permit one home loan at a time)
Loan amounts as high as $5,000,000 if financing a more significant investment property
As little as 20% down payments required
Both long-term and short-term rental properties are eligible. This means if you plan to rent your property through vacation rental online companies.
And more
Contact us below to start reaping the benefits of a DSCR loan today!
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These calculations are estimates and are not guaranteed for any particular loan.
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License Info
FL NMLS: #LO115222
AZ NMLS: #1019689
Groves Capital Inc. NMLS: #1678775
Licensed In: FL, AZ
For licensing information, go to NMLS Consumer Access Portal
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License Info
FL NMLS: #LO115222
AZ NMLS: #1019689
Groves Capital Inc. NMLS: #1678775
Licensed In: FL, AZ
For licensing information, go to NMLS Consumer Access Portal