About The Program

Rental (DSCR) Loans

Rental _DSCR Loans
Start or expand your cash flow from your investment with a rental property loan, regardless of your experience. If you’re an investor and you’re looking for a way to increase your earnings through real estate, this program is a perfect fit for you. Our Rental (DSCR) Loans allow investors to grow their rental portfolios quickly with 30-year, fixed-rate financing. Also called “buy and hold” loans, this program requires little documentation and no prior real estate investing experience. Borrowers are qualified mainly on the property’s income/debt service coverage ratio (DSCR). This loan program can be used to purchase a property, refinance an existing property, or perform a cash-out refinance to access existing equity. Many of our borrowers employ the “BRRRR (Buy, Rehab, Rent, Refinance, Repeat) Method” of real estate investing, using our bridge financing program in conjunction with our DSCR rental program. Our Bridge loans provide financing for the purchase and rehab and our DSCR program offers great 30-year terms when refinancing a newly renovated property into a passive income-producing rental property.
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Rental DSCR Loans-Guidelines
Rental DSCR Loans-Guidelines

What is a Rental (DSCR) LOANS?

A Debt Service Coverage Ratio (DSCR) loan is a long-term financing option designed specifically for real estate investors. It is ideal for funding a new purchase, refinancing a property you own, or freeing up cash in your rental portfolio to gain asset appreciation and cash flow without the hassle of bank underwriting rules . This loan does not require income verification or tax returns. This allows you to get the most out of your investments properties.

 

Use our elite DSCR loan product to purchase or refinance your rental property on a 30-year fixed at competitive rates without using tax returns or personal income to qualify. Additionally, our loans only report to credit when in default, so you can avoid adding debt to your credit report with our DSCR loan.

 

Our DSCR loan rates are near conventional rates, but will less hassle and more investor-friendly loan options.

 

BRRRR Method – Use our DSCR loan to refinance to more permanent fixed rates once your remodel is complete and the property is rented. We can also assist with this as a Short Term Rental (STR) Loan.

 

  • Investment Properties Only
  • No Tax Return Needed
  • 2-50 Property Portfolio Options
  • Keep in the name of an LLC
  • Close in 10-14 days (and even in as few as 7 days)
  • First Time Flippers Welcome
  • Higher Leverage with More Experience
  • We Pay Brokers

At JCREIG Capital Funding, we offer faster financing with excellent terms. Simplified loans, amplified profits.

Frequently Asked Questions

Debt Service Coverage Ratio. This is simply = your total payment / your total rents. If this number is 1.0 or greater, than your rents are higher than your total payment. The higher that is, the better your rate generally is.
The ratio is calculated by dividing the property income (rental income) from the property PITIA (principal + interest + taxes + property insurance+ homeowners association dues). The resulting ratio lets the lender know how much income is available to pay the mortgage. A ratio of 1.0x means that the property that the revenue from rental income AND expenses is equal. A DSCR above 1 means the property is positively cash-flowing. Conversely, a DSCR of less than one means that the expenses exceed the rental revenue and the property has a negative cash-flow.
Our DSCR loans are tailored to consolidate and restructure existing debts, providing more favorable terms and extended durations. This can lead to reduced monthly payments and more efficient debt management, ultimately bolstering your long-term financial health.

There’s many reasons clients prefer DSCR loans vs. Conventional financing. First, DSCR loans do not take into account your other debts beyond the PITI payment of your loan. So, if you are self employed and report very little income, using a DSCR loan may be the best option.

Secondly, a DSCR loan does not report to credit, and therefore may not affect your future ability to qualify for additional properties.

Another benefit is that a DSCR loan allows you to vest in an LLC , whereas FNMA does not allow that on traditional financing.

  • No Personal Income or Employment Verification required.
  • Faster closing process
  • Very competitive rates
  • Allows a real estate investor to change a Short Term Loan such as a Fix and Flip, Bridge and Ground up Construction to a 30 year Loan.
The top 3 factors that affect the DSCR rate include the actual Debt Service Coverage Ratio (DSCR), Loan-to-Value, and your FICO (credit score). The higher the DSCR is on a property, the lender is able to forecast a lower risk for lending the capital since the property may be positively cash-flowing and the investor is able to pay the monthly loan payments. Loan-to-Value, or LTV, refers to the loan amount as it relates to the actual value of the property. Typically, DSCR loans will never exceed 80% LTV. That means that the borrower needs to bring about 20% +closing costs as a down payment for the loan. The lower the LTV, the less risk for the lender, hence a better rate. Finally, your credit score is still a factor when determining the rate. Lenders use the score and it affects the final rate for your DSCR loan.
Rates vary daily, but typically DSCR loans are .5% to 1.5% higher than a Conventional Loan. However, DSCR loans are much easier to qualify for given the fact they do not take into account your personal income.