The Low down on
DSCR Program
Qualify for a home loan without using your tax returns. A debt service coverage ratio loan is a type of non-QM loan for real estate investors. Lenders use a DSCR to help qualify real estate investors for a loan because it can easily determine the borrower’s ability to repay without verifying income
How Does a DSCR Loan Work?
Some individuals may not qualify for a conventional loan. The debt service coverage ratio loan allows these individuals to qualify more easily because they don’t require proof of income via tax returns or pay stubs that investors either don’t have or that don’t represent their true income due to write-offs and business deductions.
The Debt Service Coverage Ratio is a ratio of a property’s annual gross rental income and its annual mortgage debt, including principal, interest, taxes, insurance, and HOA (if applicable). Lenders use this 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 there will be at a specific loan amount.
Benefits of DSCR Loans for real estate investors include:
- No Income or job history verification
- As little as 20% on down payments
- Debt Service Coverage Ratios as low as .75%
- Interest-only loan option available
- Suited for new and seasoned real estate investors
- Both long-term and short-term rentals are eligible
- DSCR LLC loans: Close in the name of your LLC
- Complete our Commercial Loans Mortgage Qualifier
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
You ask, we answer
We know the mortgage process can be tricky. Here’s some questions people like you have asked us in the past.
At Channel Mortgage, we are dedicated to providing you with a comprehensive online platform for tailored mortgage solutions. Our commitment to integrity ensures that you receive prompt customized quotes and competitive rates. With our user-friendly tools and expert guidance, we strive to simplify the home loan process and assist you every step of the way. Experience a smoother journey towards homeownership with Channel Mortgage.
Channel Mortgage proudly holds the esteemed position of being a diamond partner with the nation’s largest wholesale purchase lender. This partnership translates into remarkable advantages for you, including the quickest turnaround time and access to an exceptional platform that ensures a consistent and successful loan closure. With an average closing time of just 12 days, we prioritize efficiency without compromising quality.
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Mortgage rates are subject to daily fluctuations and are influenced by individual circumstances. However, by initiating your application online, you will consistently receive our most competitive rates. Take advantage of this opportunity to access today’s rates and learn how rates are trending: get your free quote today!
Channel Mortgage is best for people who have a credit score of 620 or above and are ready to buy, sell, refinance, or build their dream home.
Do You Qualify?
To qualify for a mortgage, lenders typically require that you have a debt-to-income ratio of “43/49.” This means that no more than 43% of your total monthly income (from all sources, before taxes) can go toward your new mortgage payment, and no more than 4 late payments.