What types of properties are eligible for DSCR loans?
DSCR loans are typically used for income-generating properties, including: * Single-family rentals [5] * Multi-family units (duplexes, triplexes, quadplexes) [5] * Commercial real estate [4] * Vacation rentals [4] * Condominiums (including non-warrantable condos) [7] * Townhomes [8] * Mixed-use properties [8]
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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...