#dscr-loans

#dscr-loans

The group reportedly purchased more than 700 homes largely in majority-Black neighborhoods at inflated prices financed by debt service coverage ratio (DSCR) loans. Investors are accused of taking out $100 million in DSCR loans from dozens of private lenders using projected rental income as collateral. According to the report, many transactions were recorded for prices far above each property's previous sale value or public appraisal estimate.