What are typical loan-to-value (LTV) ratios for DSCR loans?
LTV ratios for DSCR loans typically range from 70% to 80%, but can vary depending on the lender, property type, and your creditworthiness. A lower LTV means a lower loan amount relative to the property's value, which may require a larger down payment but could potentially lead to more favorable interest rates[5, 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...