DSCR Loans
Secure funding based on your property's profit potential rather than personal creditworthiness.
In a DSCR Loan (Debt Service Coverage Ratio), we assess a property’s income to determine its ability to cover debt payments. This loan type is useful for real estate investors because it hinges on property revenue rather than personal credit, enabling them to secure financing for ventures in Houston’s robust real estate market.
Loan Features
Loan Amounts
Max LTV
Amortization
Frequently Asked Questions
The DSCR is calculated by dividing the property’s net operating income (NOI) by its total debt service (the sum of principal and interest payments on the loan).
Like other hard money loans, DSCR hard money loans are typically secured by the property itself.
Typical document requirements for a DSCR hard money loan include:
1. Property financials (income statement, rent roll)
2. Property appraisal or valuation
3. Purchase agreement or contract
4. Borrower’s personal financial statements
5. Proof of funds for down payment or reserves
6. Property insurance information
7. Title insurance
8. Borrower’s credit report
9. Business entity documents (if applicable)
10. Exit strategy plan (how the borrower plans to repay the loan)
11. Any additional documents specific to the lender’s requirements or the property’s condition.
These documents help lenders like us assess the property’s value, the borrower’s ability to repay the loan, and the overall risk associated with the transaction.
Let’s work together on your next real estate project
Get a customized financing solution for your investment property. Set up a free consultation with us via call, video conference, or an in-person meeting.