When banks tighten their lending requirements and underwriting becomes a hassle, smart investors turn to DSCR loans to fund their rental properties. Why? Because these loans are designed to offer flexibility, efficiency, and maximum leverage. Here’s why many of our clients are making the switch:

Simplified Underwriting Means Faster Closings

DSCR, or Debt Service Coverage Ratio, loans focus on the property’s cash flow rather than the borrower’s personal finances. This means:

  • No tax returns, W2s, or lengthy financial disclosures.
  • Credit scores are considered, but no Debt-to-Income ratio is required.

This streamlined process means you can close deals in as little as 30 days, saving you time and effort, especially if you own multiple properties.

Higher Loan-to-Value and Flexible Terms

DSCR loans offer higher Loan-to-Value (LTV) ratios than most commercial bank loans:

  • Up to 75% LTV on cash-out refinances.
  • Up to 80% LTV on purchases.

Plus, they provide the option for 30-year fixed rates, offering predictable terms and the stability most investors prefer. Unlike conventional loans with shorter terms, complicated amortization schedules, or balloon payments, DSCR loans set you up for long-term success.

Minimal Seasoning for Cash-Out Refinances

Here’s a game-changer for fix-and-flip investors or those adding value to properties:

  • You can access 75% cash out after owning a property for just three months.
  • This means you can recoup your initial investment—even add cash to your pocket—in under 90 days.

For those purchasing, renovating, and forcing appreciation in distressed properties, this is a fast path to building your real estate portfolio.

Why Investors Choose DSCR Loans

DSCR loans are growing in popularity because they provide quick closings, higher LTV options, and the flexibility investors need to maximize returns. While traditional lenders can still be a great option in certain scenarios, more investors are discovering that DSCR loans are the key to scaling their real estate investments.

Take the Next Step

Explore how DSCR loans can fuel your investment strategies. Whether you’re growing your portfolio or reaping the rewards of forced appreciation, DSCR loans ensure you’re not slowed down by the red tape of traditional underwriting.