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DSCR Loans Explained 2022 (Updated)
By now, you've no doubt seen or heard that mortgage interest rates are rising. This is no different for DSCR loans, which, a couple of months ago were in the four percent area, and now they're in the six, seven, and even higher ranges.
So what should you do? Should you just scrap your plans for this type of financing? Are your Airbnb dreams dead? Of course not. You can still make it work, even at higher interest rates.
In this video, Beau walks you through the ins and outs of DSCR loans. You don't want to miss it.
A little background on what a DSCR loan is:
The formula for the debt-service coverage ratio requires net operating income and the total debt servicing for the entity. Net operating income is a company's revenue minus certain operating expenses (COE), not including taxes and interest payments. It is often considered the equivalent of earnings before interest and tax (EBIT).