If you are looking for a safe investment, consider buying a home in Florida. The Sunny State offers a variety of investment advantages: a developed economy, a pleasant location, and a large population. Demand for real estate in Florida is rising — so now is the time to consider buying. A DSCR loan would be a good solution for you.
A DSCR loan will make a sound investment decision based on the property’s net income. Therefore is considered a less risky option for lenders and more favorable for investors.
How does the DSCR loan work in Florida?
DSCR is the debt service coverage ratio. This is what lenders consider when providing a loan for your business. The ratio is calculated using the formula: net operating income is divided by the total amount of debt service. The stronger the ratio, the more favorable your interest rate will be.
A good DSCR is at least 1.25 times debt service coverage. This means your monthly income is at least 1.25 times your monthly debt obligations.
Benefits of the DSCR Loan
A DSCR is generally used for business purposes and has a more extended repayment period than a personal loan. The main advantage of it is the maximum variety of credit purposes, from business expansion to covering unexpected debts.
Let’s take a closer look at other benefits:
Increased credit capacity
You’ll have access to more significant amounts of capital than traditional loans because the DSCR is based on your business’s cash flow.
Longer repayment terms
Payments are spread over a more extended period, making it easier for you to manage your debts.
Flexible repayment options
DSCR lenders often offer flexible repayment options — so that the borrower can tailor debt repayments to the business’s cash flow. For example, in good times, you can pay more, and in financial difficulties, you can pay less.
No personal guarantees
The borrower is not personally liable for the debt. This protects it in case the business is unable to repay the loan.
Access to additional financing
As long as you comply with all obligations and pay your loan on time, you will be able to receive additional financing from the lender in the future. This amount will also help you grow your business.
It is an excellent opportunity to both scale your business and a way to cover old debts.
Therefore, the following point becomes quite logical — how to get more favorable terms on a loan in Florida.
We will look at several life hacks that will help increase your chances of getting a profitable deal:
- Provide complete and accurate financial statements to your lender.
- Increase the business’s operating income — for example, try to reduce expenses and find ways to increase revenue.
- Negotiate favorable terms for your company.
If you want comprehensive advice on DSCR mortgage, schedule a free consultation with LBC Mortgage and discuss the details with a broker.
DSCR Terms:
- Up to $5 million of the loan amount
- No income reports or income calculations are required
- 20% down payment
- 640 credit score
- Deferred financing options
- The cash flow of the property is used to qualify
- Unlimited withdrawal of money
- Ideal for new and experienced investors
- Total number of investment properties
- Possibility of interest-only repayment
- Easy to qualify
Make your essential mortgage decision with LBC Mortgage — we lead the DSCR in Florida. And we can understand your individual situation and loan requirements — to cover debts or expand your business.
Apply with LBC Mortgage to avoid paperwork hassles and quickly expand your investment portfolio. Our DSCR loans are a secure way to invest in your prosperity.
Contact us and you can get approval in 24 hours!
Applying for a loan in Florida with LBC Mortgage is a great way to expand your portfolio without worrying about mortgage issues. Our mortgage loans are an excellent mortgage alternative for new and experienced investors. So why not apply today? Contact us for a free consultation, or get approved in just 24 hours!