DSCR Loan Requirements
Investing in real estate requires careful planning, and securing the right financing is crucial for success. At The Investor Loan, we understand the unique needs of real estate investors. That's why we're here to guide you through the key differences between DSCR loans and conventional loans, empowering you to make informed decisions and achieve your investment goals.
Instead of relying on tax returns, lenders analyze your bank statements, typically reviewing 12 or 24 months of deposit history. They calculate your average monthly deposits to determine your qualifying income. This approach provides a more accurate reflection of your actual earnings, especially if your income fluctuates or you have significant business expenses that reduce your taxable income.
DSCR loans typically require a down payment, which can range from 20% to 30% of the property's purchase price.
Self-employed individuals:
Freelancers, contractors, consultants, and small business owners who may not have traditional income documentation.
Business owners:
Entrepreneurs whose business income may not be fully reflected on their tax returns due to deductions or reinvestments.
Real estate investors:
Investors with multiple income streams or those who prefer to qualify based on the property's income potential rather than their personal finances.
