The Debt Service Coverage Ratio (DSCR) measures the ability to pay the property’s monthly mortgage payments from the cash generated from renting the property.
DSCR = Monthly Rental Income / PITIA *The ratio must equal or exceed 1.00
Some of the advantages of DSCR loans include:
- LTVs up to 80%
- Loan amounts up to $2.5M
- Credit scores starting at 680
- Great program for real estate investors who own multiple properties (no limit)
- You only qualify the loan against the subject property
- No other income is calculated
- Loan can close in borrower’s name, LLC or corporation
This is a great program to discuss with your realtors and builders. Real estate investors typically own multiple properties that could fit this program. Interested in growing your client base? Become a partner today!
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