What is a typical DSCR loan rate?


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What is a typical DSCR loan rate? | Valor Lending Group

What is a typical DSCR loan rate?

Valor Lending Group has the new DSCR investment property loan programs you have been searching for and we are ready to hook, line and sinker your loan scenario!

Our new investment property loans can be a short-term or long-term process. The needs of a home buyer are different from the needs of a investor, so it is important to work with an lender that understands your goals.

Valor Lending Group has multiple funding sources for all types of rental property loan scenarios. By choosing Valor Lending Group you are signing on to receiving professionalism, outstanding communication and a team that will go the extra mile to deliver perfection.


What is a typical DSCR loan rate?

What is the current DSCR Loan interest rate? Currently DSCR loan interest rates are in the mid to low 9’s, depending on your FICO score.

What is a DSCR Investment Property Loans?

Sometimes called “Investment property loans” or “rental loans,” no tax return investment property loans do not consider a borrower’s income in the traditional sense.

The “cash flow” is just the monthly rental amount the property brings in. For example, a property renting for $2,000/month would be attributed a qualifying income of $2,000/month. The main requirement for these investment property loans is that the monthly rents cover the monthly expenses. It is that simple.

Not only is a borrower’s income not considered in the loan application process, investment property lenders do not request income amounts, in fact there is no income verification of any kind. No letters from employers, no W2s, and no pay stubs. Again, the income of the investment property is simply the cash flow of the property.

What is Debt Service Coverage Ratio (DSCR)?

The DSCR = Properties Current Rents / New PITI (principal, interest, taxes and insurance) monthly Payment. If your property is collecting rents that covers your current PITI Payment your property debt services aka your properties rents cover your total mortgage payment.

Example of DSCR Calculation: New P&I = $1,851.26 + 758.53 taxes + $147 insurance = $2,756.79 PITI | $3200 Current Rents/$2756.79 = 1.16 DSCR

Debt service coverage ratio (DSCR) is one of many financial ratios that lenders evaluate when considering a loan application. DSCR is an important ratio that helps indicate to the lender whether or not you will be able to pay back the loan with interest. A ratio over 1 is good, and the higher the better.

The minimum DSCR a lender will demand depends on macroeconomic conditions. If the economy is growing, lenders may be more forgiving of lower qualifying ratios.

DSCR Investment Property Loan Highlights:

  • No Tax Returns
  • Employment NOT Required
  • No Income Required
  • No Debt to Income Ratio Calculated
  • Cash Flow based on Subject Property rents | if property is vacant upon purchase market rents from the appraisal will be used to calculate DSCR
  • SFR, Condo and 1-4 Unit
  • Maximum Loan $2.5M | Purchase and R/T Refinance
  • Maximum Loan $2M | Cash out Refinance
  • Unlimited Financed Properties OK

Don’t let rising rates prevent you from acquiring more investment properties!

Valor Lending Group has solutions to access capital through a refinance with rates that will let your property’s cash flow.

Contact me today for immediate attention to your scenario!

Recap of our Loan Products:

  1. Hard Money Loans (20% down / minimal documentation) Typically Fund in 7-10 days.
  2. Stated Income Loans (Great for business owners and self employed ) No tax returns!
  3. 100% financing is available (we can cross collateralize other properties if there is enough equity)
  4. Valor VA Home Loan 100% financing up to $1.5MM
  5. Investor Cash Flow Loan – No tax returns or DTI calculation! Based on subject property cash flow
  6. Flipper & Rehab Loans (Flip a property with one of our many options)
  7. 2nd Position Loans up to $5mm
  8. Raw Land & Lot Loans
  9. Ground up Construction for spec homes, custom homes and commercial ground up.
  10. Farms, Vineyards, Ranches and Agricultural Properties (25-30% down)
  11. Manufactured Housing / Mobile Homes (20% down / 600+ credit score)
  12. Acreage Properties
  13. Commercial Loans up to $500mm
  14. 3% & 5% down Conventional Loans– LPMI (Lender paid mortgage insurance)
  15. Foreign Nationals Loans (no social security or residency required)
We also offer:
  1. 10, 15, 20, 25, 30 year Fixed, Conventional Conforming Loans
  2. High Balance Conforming aka Super Conforming
  3. Jumbo’s to $10 Million / 10% down Jumbo to $1.5mm
  4. FHA, USDA
  5. ARM’s
  6. Reverse mortgages up to $1 Million Value
  7. Refinance including Cash Out

CALL or EMAIL for immediate attention to your scenario!

**Rates and terms subject to change without notice

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