If you are investing in a rental property in San Diego, you may be looking for a form of financing that is fast and easy to apply for. Applying for a specialized type of mortgage called a DSCR loan may be just what you need to speed the process along.
What are DSCR Loans?
The abbreviation DSCR is short for “debt service coverage ratio.”
Your income is one of the factors assessed for qualification for any type of mortgage. But with most lending products, we are only looking at your existing income.
DSCR loans differ by also taking into account the cash flow that you estimate your rental property will be able to produce.
DSCR = Net Operating Income / Debt Service
Advantages of DSCR Loans
DSCR loans offer many benefits to real estate investors. Here are a few reasons to apply for this type of loan:
- There is no income verification required for DSCR loans. That means you do not need to provide a W-2 or bank statements.
- Not only do you not need to verify your income, but you do not need to verify your employment status or history either.
- Compared to the standard mortgage process, the DSCR loan process is simple, quick and streamlined.
- The less involved application process frees up your time and reduces your stress. You can focus on searching for properties to buy or on other aspects of your real estate investment plans.
- DSCR loans allow for more rapid closing than the standard loan process. Because you are able to close fast, you can beat competing buyers to the finish line. That gives you the best chance of winning your dream property.
- The number of properties you can purchase is unlimited. Grow your real estate holdings at your own pace.
- With a competitive application for a DSCR loan, you can look forward to an equally competitive loan product. The credit score and down payment requirements may be suitable for investors with a wide range of financial situations.
- You can use this type of loan to buy long- or short-term rental properties.
Apply Now for a Debt Service Coverage Ratio Loan in San Diego
I can help you apply for a DSCR loan quickly and easily in San Diego or beyond. To schedule your consultation, please give me a call today at (619) 857-7191.