DSCR Mortgage Loans

If you’re an investor looking to purchase or refinance investment properties, a DSCR (Debt Service Coverage Ratio) Mortgage might be the perfect solution. This innovative loan program is designed to help real estate investors qualify based on their property’s cash flow potential rather than their personal income, making it an ideal choice for those with multiple properties or non-traditional income sources.

What Is a DSCR Mortgage Loan?

A DSCR (Debt Service Coverage Ratio) Mortgage is a type of loan specifically for investment properties. Instead of focusing on the borrower’s income, lenders evaluate the property’s income-generating potential. This is done by calculating the property’s Debt Service Coverage Ratio, which measures whether the property’s rental income can cover the monthly loan payment, including principal, interest, taxes, and insurance.

Example:
If a property generates $2,000 in monthly rental income and the loan payment is $1,500, the DSCR is calculated as 2,000 ÷ 1,500 = 1.33. A DSCR greater than 1.0 indicates that the property generates enough income to cover the debt.

Benefits of DSCR Mortgage Loans

DSCR loans are uniquely designed for real estate investors and come with several advantages:

• Simplified Qualification: No personal income verification; approval is based on the property’s cash flow.
• Scalable Financing: Ideal for investors with multiple properties or looking to expand their portfolio.
• Flexibility: Loans can be used for purchasing or refinancing investment properties.
• No Employment Documentation: Eliminates the need for W-2s, pay stubs, or tax returns.
• Quick Closings: Streamlined approval process leads to faster transactions.

Who Can Benefit from a DSCR Loan?

DSCR loans are an excellent option for:

• Real estate investors seeking to grow their portfolio.
• Borrowers with complex income structures or non-traditional employment.
• Individuals focused on cash-flow-positive investment properties.
• Property owners looking to refinance and take advantage of their equity.

How DSCR Loans Work

1. Calculate DSCR: Divide the property’s gross rental income by the monthly loan payment (including PITI: Principal, Interest, Taxes, and Insurance).
2. Meet Lender Requirements: A DSCR above 1.0 is typically required, though some lenders may offer flexibility.
3. Choose Loan Terms: DSCR loans often provide flexible terms, including fixed and adjustable rates.

Apply for DSCR Loans Today

Looking to finance or refinance your investment properties? Our DSCR loan programs offer flexible, hassle-free financing tailored to real estate investors. With competitive rates and a focus on the property’s income potential, we make it easy for you to grow your portfolio.

Working With Sammamish Mortgage

At Sammamish Mortgage, we prioritize your goals, offering expert guidance to help you navigate the mortgage process. With decades of experience serving clients in Washington, Oregon, Idaho, Colorado, and California, we’re committed to finding the best solution for your needs.

We offer competitive rates and a seamless loan experience. Whether you’re purchasing or refinancing, our team is here to help you succeed.

Ready to get started? Use our free Instant Rate Quote tool or contact us today to explore your DSCR loan options.