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logo
  • Home
  • Loan Programs
  • Conventional Loans
  • 5% Down Jumbo Loans
  • FHA Loans
  • USDA Loans
  • VA Loans
  • Self Employed loans (Alternate Documentation)
  • Investor Cash Flow DSCR Program
  • Investor Cash flow worksheet (DSCR)
  • Short Term Rental Loans (Air BNB / VRBO)
  • Foreign National Loans
  • Commercial Loans
  • Apply Now
  • Resources
  • Mortgage Basics
  • Online Forms
  • Mortgage Calculators
  • Loan Process
  • Credit Card Builder
  • Blog
  • Careers
  • Why Join Coast2Coast Mortgage?
  • Loan Officer New Hire Referral Program
  • Apply for a Loan Originator Position
  • Career Opportunities
  • Loan Officer Dashboard
  • Pricing Engine
  • WeMLO Processing
  • Marketing Toolbox
  • Listing Booster
  • Go Paperless Credit Authorizations
  • Zoom Meetings
  • G-Suite Learning Center
  • Employee Portal
  • Closed Loan Submission forms
  • Reviews
  • Locations
  • 1-888-456-9796

Investor Cash Flow (DSCR) loans 

Debt Service Coverage Ratio loans are loans designed for real estate investors that do not want to use their tax returns to qualify to buy investment property. 

The debt service coverage ratio is the property’s annual net operating income (NOI) compared to its annual mortgage debt service (annual debt obligation for the property). The DSCR is typically used by lenders to qualify a borrower for a real estate investment loan because it determines the borrower’s ability to repay the loan, also known as the income coverage.

Real estate investors often write off a lot of expenses on their rental properties, and therefore a DSCR loan is more appropriate and easier to qualify for. Other benefits include no limit on the number of financed properties unlike Fannie Mae and Freddie Mac (Bankable loans). You can also close these loans in a commercial entity such as an LLC. 

The Basics of DSCR

From a lender's point of view, DSCR refers to the borrower's ability to pay back a loan based on the monthly rent of the property. Essentially, it is a way to measure cash flow. The tricky thing about DSCR is that each lender may calculate it differently, and the minimum requirements often vary.

So what is a good DSCR?

While it varies between lenders, typically anything above 1.2 is usually considered good, and anything above 1.5 is considered great. 1.0 means the investor is getting exactly the same amount of rent as their monthly payments. We calculate DSCR by dividing PITIA (monthly principal, interest, taxes, insurance, and association dues) by the gross monthly rent. We also have a No DSCR program which can be very beneficial for Air BNB / VRBO or short-term rental properties. 

Here are some of the other benefits:

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Contact us today to discuss this amazing program and see if you can take advantage of this amazing product!

About Us

We've been helping customers afford the home of their dreams for many years and we love what we do.

Company NMLS: 376205
www.nmlsconsumeraccess.org

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Contact Us

9050 Cypress Green Dr Suite 403
Jacksonville, Florida 32256
Phone: 1-888-456-9796
info@coast2coastmortgage.com

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These materials are not from HUD, FHA, the USDA, or the VA. These materials were not approved by any government agency. They are independent of any government agency. We are not in any way affiliated with any organization listed or referenced within this website, including HUD/FHA/USDA/VA. The inclusion of various education, information, web links, or materials are not an endorsement of the Sender or any of its employees or business partners.
For information directly from HUD/FHA, visit http://www.hudclips.com
For information directly from the VA, visit http://www.benefits.va.gov/HOMELOANS/
For information directly from the USDA, visit http://www.usda.gov/wps/portal/usda/usdahome?navid=GRANTS_LOANS

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