DSCR Loans in Weatherford, TX
Ready to build your investment portfolio? Let Pure Funding help you with a DSCR loan.
DSCR loans from Pure Funding
Debt Service Coverage Ratio Calculation
Here is a real world example for real estate investors for the debt service coverage ratio calculation. Simply take the gross rental income, which for this scenario we will use $100,000 gross rental income and an annual debt of $80,000.
$100,000/$80,000 = 1.25 DSCR
The easy way to know if you have a good DSCR is that you have a ratio that is > 1.0. This means that your property is also cash flow positive. Now that you know how to calculate the ratio, let’s discuss some of the benefits of a DSCR loan:
No income documents required
No job verification / great for self-employed borrowers
No rental / investor experience necessary
Long term rentals
Short term rentals (VRBO, airbnb, etc.)
Interest-only options up to 5 years in some cases
Limited underwriting requirements
Unlimited properties
Close/Vest in an LLC
As little as 20-25% down payment