If you are purchasing a rental property in Atlanta or elsewhere in Georgia or the Southeast region, one flexible way to do it is with a DSCR loan, also called an “investor cash flow loan.”
What is a DSCR Loan?
DSCR is an abbreviation for “debt service coverage ratio.” But the name “investor cash flow loan” makes it easier to understand what a DSCR loan is. We look only at the projected cash flow from the rental property to assess your eligibility for financing. You do not need to document your personal income, which plays no role in establishing your qualifications.
DSCR = Net Operating Income / Debt Service
To calculate the DSCR, the subject property gross rent is divided by the subject property monthly payment.
The DSCR we are looking for is 1.00%
Example 1: Gross Rent = $2,000; PITI = $1750; $2,000/$1,750 = 1.142 DSCR (acceptable)
Example 2: Gross Rent = $800; PITI = $1,000; $800/$1,000 = 0.80 DSCR (not acceptable)
You can use an investor cash flow loan to buy any of the following types of properties:
• 1-4 unit investment properties
• Single Family / PUDS/ Condos
• Non-Warrantable Condos
DSCR Loan Features
• Purchase / Refinance
• No personal income to qualify
• Qualification based on property cash flow
• No limit on number of properties financed
• Min credit score 640
• Min loan amount $150,000
• Max loan amount $2,000,000
• 30 yr fixed / 5 yr ARM / 40 yr interest only
Benefits of Debt Service Coverage Ratio Loans in Georgia
• When you submit your application, you do not need to verify your employment history or personal income. Neither will prohibit you from moving forward with your real estate investments.
• The DSCR loan application is simple and streamlined. Since you can close rapidly, you have a better chance of beating competing buyers to the finish line and being the one to win your dream property.
• The DSCR loan process allows you to buy as many properties as you want. So, this is an excellent product to choose if you want to expand your portfolio.
Apply for an Investor Cash Flow Loan in Atlanta and Beyond
Ready to apply now for the flexible financing you need to add to your real estate holdings? Please give us a call today at (404) 303-7411. We have offices in Roswell, GA, Pensacola, FL, and Lake Wylie, SC, and work with homebuyers and homeowners throughout the states of Georgia, Florida, Alabama, North Carolina and South Carolina.