How do you get approved for a DSCR loan?

How do you get approved for a DSCR loan?

Hi Beau, I don't know anything about DSCR loans. I know I can't qualify for a conventional loan because I am now self-employed and can't show too much income at the moment. Please give me an overview of what the process would look like and how I could work with you to see if investment type deals are a good fit for the DSCR loan program.

Thanks,
Phil

Timestamps
[00:46] DSCR loans were created to not need income documentation
[01:04] The lenders want to see that the property is going to cash flow
[01:22] You are looking at the maximum LTV if you have a higher credit score
[01:54] What to do if the property is vacant
[02:07] The calculation to use to get approved for a DSCR loan
[02:15] Simple steps to get approved for a DSCR loan and buying a property

Are you a real estate investor or business owner looking to expand? Book a discovery call with Beau to learn all the ways he can help you - https://investorfinancingpodcast.com/rumble

1️⃣ DSCR loans are designed for borrowers who can't qualify for a conventional loan due to insufficient income documentation, and rely on the rental income from the property to pay the debt.
2️⃣ The lenders evaluate the potential rental income and require that it can pay at least 120% of the loan.
3️⃣ The loan approval is based on credit score, with higher scores being eligible for higher loan-to-value (LTV) ratios.
4️⃣ The loan process is simple and does not require income documentation, with the appraisal, title work, and closing attorney procedures similar to a regular property purchase.
5️⃣ The borrower needs to sign a personal guarantee, and the loan is usually made to a business entity.
6️⃣ The loan approval depends on the property's potential income and purchase price.
7️⃣ Beau Eckstein offers a free strategy call to help real estate investors with their financing plans - https://investorfinancingpodcast.com/rumble

💰 Summary: DSCR loans are a viable financing option for self-employed individuals or those with insufficient income documentation, relying on the rental income to pay the debt. The loan approval is based on credit score and the property's potential income, and the loan process is simple and similar to a regular property purchase.

#DSCRloans #RealEstateInvesting #RentalIncome #CreditScore #LoanApproval

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About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

🎥 The video interviews we do on IFP will help you scale your real estate business and learn how to finance your all your projects.

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