Frequently Asked Questions

A good DSCR signifies that a person or company has sufficient cash flow to cover debt obligations. Generally, a DSCR above 1 means there is enough cash flow to cover ongoing debt payments, while anything below this number may suggest the opposite. If a company or individual has a DSCR ratio of 1.2 or higher, then it indicates that they have plenty of excess cash flow after servicing their debt obligations; this is an ideal situation for lenders to be in since it indicates strong creditworthiness.
A stated income loan is known for speeding financial procedures. It is unlikely that a seller will wait another week to come to an agreement. So, it may be worth it if you’re sure you need this deal.
DSCR loans are generally easier to qualify for than other types of commercial real estate loans. They offer more flexible terms and lower interest rates than other types of loans. But compared to traditional loans, DSCR mortgage programs require the borrower’s ability to pay back the loan based on the income generated by the property. Lenders will need more documentation and may have stricter underwriting guidelines for DSCR loans. The DSCR requirements also depend on the lender, the property, and the borrower’s credit, financials, and experience. It’s highly recommended to work with a specialist in DSCR loans to have a good understanding of the requirements before applying.
While many DSCR loan options have a 30-year fixed term, some lenders may offer shorter terms such as 5, 7, or 10 years.
People often believe that they may save money by taking out state income loans. You should know that the stated income loan is only available to people with a significant down payment, good credit, and big equity. Still, none of these factors can change the reality that stated income loans sometimes might be risky to finance.

DSCR mortgage loans have many benefits, but there are still some drawbacks to pay attention to:

Higher Interest Rates DSCR loans typically come with higher interest rates than traditional loans, as they are considered higher risk by lenders. It can make them less attractive to borrowers looking for low-cost financing options.

Potentially Risky DSCR loans can be risky, because they require a property to generate enough income to cover the loan payments and other debt services. If the property is not generating enough income, the borrower may default on the loan.

One downside of a DSCR mortgage is that if your property does not generate enough income to cover the monthly payments, you may be at risk of defaulting on your loan.
While DSCR mortgage programs can be a good option for real estate investors, they may come with higher interest rates and fees than traditional mortgages. Additionally, the underwriting process can be more complex and time-consuming. As such, it is important to carefully consider all the terms and conditions before applying.
Yes, you can take cash out of your house and payoff some or all of your other debts. Generally, mortgage interest rates are lower than other types of loans, hence, refinancing into a higher amount to pay off you other debts will be beneficial.
DSCR loans allow foreigners to purchase property in the United States. There are a few things that make these loans different from regular investment property loans, however. For one, DSCR mortgages require a lower down payment than traditional investment loans. Additionally, they also come with more flexible underwriting standards, making it easier for foreign investors to qualify. As a result, DSCR mortgages have become a popular financing option for foreign buyers looking to purchase property in the U.S.
In order for us to issue a pre-approval for you, we would need to review your taxes, income and assets. Contact our office to get started.

Yes, cash-out refinancing allows you to access the equity in your home and use that cash for other purposes, such as home improvements, debt consolidation, or other expenses. It’s important to consider how this affects your overall financial situation. Want to explore cash-out options? Schedule a consultation!