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In recent years, a fairly new loan product called “DSCR Loans” (DSCR stands for “Debt Service Coverage Ratio) has become enormously popular with real estate investors; many of which have been able to achieve dreams of financial freedom through rental properties.
DSCR Loans have been the number one tool these investors have utilized. These loans, meant specifically for investment properties only, are so effective and popular because they require no income verification (or DTI – Debt-To-Income Ratio) and no tax returns or endless paperwork.
Further – while the qualification and documentation is much less than conventional mortgages – the interest rates are just barely higher (typically less than 1% more). These loans offer fixed rates for 30 years (including options where its interest-only for the first 10!), so you avoid the payoff and refinance pressure that often comes with hard money alternatives.
Put together, it's no wonder why investors have flocked to these loans to scale their portfolios and achieve their dreams of financial freedom.
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