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How Is a DSCR Loan Priced?
In this episode, learn how a DSCR loan is priced.
First off, what are the benefits of a DSCR loan?
1. No tax returns required
2. Can close in a business entity like a corporation or LLC
3. Often, not reported on your personal credit report
4. No DTI (debt-to-income) restrictions
5. Less paperwork and aggravation
All of the above and more and what you get when you use DSCR financing.
DSCR – Debt Service Coverage Ratio. It's the ratio of operating income available to debt servicing for interest, principal, and lease payments. It is a popular benchmark used in the measurement of an entity's (person or corporation) ability to produce enough cash to cover its debt (including lease) payments. The higher this ratio is, the easier it is to obtain a loan. The phrase is also used in commercial banking and may be expressed as a minimum ratio that is acceptable to a lender; it may be a loan condition. — Source: Wikipedia (https://en.wikipedia.org/wiki/Debt_service_coverage_ratio)