How can changes in the real estate market or rental income affect my DSCR loan?
Changes in the real estate market, such as declining property values or rental rates, can impact your DSCR loan. If rental income decreases or expenses increase, your DSCR may fall below the lender's requirements, potentially putting you at risk of default[3].
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Related Questions
What is a DSCR loan?
A DSCR loan, or Debt Service Coverage Ratio loan, is a type of mortgage designed for real estate investors. Unlike tradi...
How is the DSCR calculated?
The DSCR is calculated by dividing the property's net operating income (NOI) by its annual debt service (total principal...
What is a good DSCR ratio?
Lenders typically prefer a DSCR of 1.25 or higher, indicating the property generates 25% more income than needed for deb...