DSCR LOANS

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

DSCR Loans

Unlock Investment Opportunities with Pure Funding Mortgage's DSCR Loans:

Building a strong real estate portfolio requires access to the right financing. Pure Funding Mortgage offers DSCR loans, a unique option ideal for investors looking to expand their horizons. But what exactly are the benefits of a DSCR loan through Pure Funding Mortgage?

Focus on Property, Not You: Unlike traditional loans, DSCR loans prioritize the property's income potential over your personal finances. This means no need for income verification or employment history checks. Pure Funding Mortgage focuses on the property's Debt Service Coverage Ratio (DSCR), a metric that measures its ability to generate enough income to cover its expenses, including your mortgage payment.

Open Doors for Various Investors:

  • Self-employed? DSCR loans bypass the need for income documentation, making them perfect for those with less traditional income structures.

  • New to the Game? Prior rental experience isn't a requirement, opening doors for aspiring real estate investors.

  • Looking to Diversify? DSCR loans can be used for both short-term rentals like AirBnB and traditional long-term rentals, giving you flexibility in your investment strategy.

Maximize Your Investment Potential:

  • Interest-Only Options: In some cases, Pure Funding Mortgage offers interest-only loans for the first five years. This can improve your cash flow during the initial investment period.

  • Unlimited Properties: Unlike some lenders, Pure Funding Mortgage doesn't restrict the number of properties you can finance with a DSCR loan, empowering you to scale your portfolio strategically.

Faster and Streamlined Process: DSCR loans often boast faster closing times compared to conventional loans. This allows you to seize time-sensitive opportunities and get started on your investment journey quickly.

Important to Consider:

While DSCR loans offer significant advantages, they typically come with higher interest rates than traditional loans. Remember, a DSCR loan is secured by the property itself, so careful analysis of the property's income potential is crucial.

Ready to Unlock Your Real Estate Potential?

Pure Funding Mortgage's DSCR loan program can be the key to accelerating your investment goals. Contact us today to discuss your options and see how a DSCR loan can help you build a successful real estate portfolio.