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Ever wonder if you could get a loan based on a property's income potential instead of your own finances? With a Debt Service Coverage Ratio (DSCR) Home Loan, you can! At Clear Rate Mortgage, we offer DSCR loans to help real estate investors get funding based on how much income their investment properties can generate.
What's a DSCR Home Loan?
A DSCR Home Loan is a financing option for property investors that looks at the property's ability to pay its debts, not the borrower's personal income. The Debt Service Coverage Ratio compares the property's income to its debt payments. If the ratio looks good—usually above 1.0—lenders are more likely to approve the loan since the property can make enough money to cover its mortgage.
Why Pick a DSCR Home Loan?
- No Personal Income Needed: Unlike regular loans, DSCR loans focus on the property's income, making it easier for investors who might not qualify for standard loans.
- Grow Your Property Portfolio: DSCR loans are great for those wanting to add more properties, as the property's income is the main factor.
- Use Funds How You Want: Whether you're buying, refinancing, or fixing up a money-making property, a DSCR loan gives you the freedom to grow your investments.
- Easier Approval Process: Since it's all about the property's income, getting approved can be quicker and simpler than with regular loans.
Who Can Get a DSCR Home Loan?
DSCR loans are made for real estate investors. You'll typically need:
- Good Property Income: The property must make enough money to cover its debts, usually shown by a DSCR of at least 1.0.
- Decent Credit: While your income might not matter, a good credit score will help you get better loan terms.
- Investment Property: DSCR loans are usually for investment properties like rental homes or small apartment buildings, not for where you live.
How Clear Rate Mortgage Can Help
At Clear Rate Mortgage, we know DSCR loans inside and out and understand what property investors need. Whether you're buying your first rental or adding to your collection, our team will help you through the process, making sure you get the funding you need based on how much money the property can make.
Want to Get Started?
If you're ready to invest smarter by letting the property's income do the talking, Clear Rate Mortgage is here to help. Pre-Qualify Now! and take the first step toward funding your next money-making property.
