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DSCR Loans
How do rising interest rates affect DSCR loans?
Rising interest rates can increase the cost of borrowing and potentially affect your DSCR. Higher interest rates mean higher mortgage payments, which can reduce your property's cash flow and make it more challenging to maintain a healthy DSCR[16].
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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...