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What Is a Debt Service Coverage Ratio Mortgage?
What Is a Debt Service Coverage Ratio Mortgage?
 
Real estate investors have long turned to private money loans when conventional mortgage lenders have determined that either they, with their multiple property holdings, or the properties they are looking to buy, pose too great a risk.  But for its benefits of closing quickly and not involving an intrusive qualifying process based on ability-to-repay (ATR), hard money loans are expensive and most often have terms that require the investor to refinance or pay off the loan in the short term --- not an ideal fit for those who own, or are building, a portfolio of rental properties and who are looking to stabilize their cash flow.  Enter the DSCR or "debt service coverage ratio" mortgage.  This unique program seeks to provide the investor with a way to qualify for the mortgage without focusing on personal tax returns and debt-to-income (DTI) ratios.  These are conventional loans that look more at the property than the borrower --- almost like a commercial or private money loan --- but with the added benefit of more appealing terms.
 
Our DSCR or "DCR" (debt coverage ratio) mortgage is designed for borrowers who are experienced real estate investors looking to purchase or ... more

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