Loan Program

A DSCR loan is a useful tool for real estate investors to get a mortgage based on Net Operating Income, or Cash Flow, generated from an investment property, as opposed to their personal income. No tax returns necessary.  This is an especially beneficial option for the experienced real estate investor looking to grow their portfolio of a first-time investor wanting to purchase their first rental property. 

The DSCR is a ratio of the property’s annual net operating income and its annual mortgage debt, including principal and interest. Lenders use the DSCR to analyze how much of a loan can be supported by the income coming from the property as well as to determine how much income coverage will be at a specific loan amount. 

The main benefit of these loans is the lender focuses more on borrower credit and property cash flow and less on the borrower’s personal oncome. Additionally, lenders may allow borrowers to purchase properties in the name of an LLC or corporation, something typically not allowed with conventional loans. 

Considering an investor based mortgage loan? Our mortgage specialists at Preferred Mortgage Source are here to help whether you would like to consider a DSCR mortgage or explore the many other mortgage products we have available. Give us a call at 404-383-1003 or complete our easy contact form below. One of our experienced mortgage advisors will contact you soon.