Financing built around an investment property
A debt service coverage ratio (DSCR) loan generally evaluates a rental property’s qualifying income in relation to its debt payments. This can provide a different starting point from financing that relies primarily on your personal employment income. The borrower and property still need to meet the lender’s program requirements.
Who may find it useful?
Investors who are self-employed, hold several rentals, or have a more complex personal income picture may want to explore this route. U.S. borrowers, Canadians and other foreign nationals can discuss their scenarios with me. Lender availability and documentation requirements depend on residency, credit, property and ownership structure.
What it does not tell you
A coverage ratio alone does not establish that a deal will be approved or that it will be profitable. A lender may also review credit, liquid funds, reserves, experience, condition, value and location. Your own budget should include vacancy, repairs, management and other costs beyond the lender’s coverage calculation.
What to do next
Bring the address, property type, purchase price or estimated value, rent and key expenses. For a refinance, include the purchase date and current debt. I can help clarify the questions before you decide whether to proceed.