What are the interest rates for DSCR loans?
Interest rates for DSCR loans can vary based on factors like your credit score, the property's DSCR, the LTV ratio, and prevailing market conditions. DSCR loans typically have higher interest rates than conventional mortgages due to the increased risk for lenders[4, 11].
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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...