"DSCR stands for Debt Service Coverage Ratio. A DSCR loan allows investors to qualify for financing based on the projected income of the property itself - not the borrower's personal income. Lenders use the ratio between the rental income and the mortgage payment to determine whether the property can "cover" its debt obligations. The formula looks like this: DSCR = Gross Monthly Rental Income ÷ Monthly Mortgage Payment (PITI) For example:"
"Miami's strong rental market makes DSCR loans a natural fit. With high demand for short-term and long-term rentals, investors often target the area for income-producing properties - from beachside condos to multifamily buildings in Little Havana or Brickell. A dscr loan in Miami allows these buyers to qualify without needing to prove income through tax returns, which is especially helpful for:"
DSCR loans allow investors to qualify for property financing based on the property's projected rental income rather than the borrower's personal income or tax returns. Lenders calculate the debt service coverage ratio by dividing gross monthly rental income by the monthly mortgage payment (PITI); a ratio above 1.0 indicates the property generates more income than the loan costs. DSCR lending suits Miami investors due to high demand for short- and long-term rentals across condos and multifamily buildings. The focus on property performance reduces paperwork, streamlines approvals, and helps borrowers with non-traditional income access investment property financing.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]