Debt Service Coverage Ratio

[Ann Covey]

Ok, folks who are excellent, easy DSCR companies to deal with. Reputable and you have had personal experience with? And go....

[AJ Exner]

Hey Ann, 

You'll have good ones all over the board, so nothing too crazy there. I guess my question(s) would be what market are you looking to invest in, what values are your deals going to be around, how many units will you generally aim to have, and what is your ballpark FICO?

All of these things would play a KEY role in which lender would actually be the best. Region is big because most DSCR lenders focus in different areas and might avoid other areas all together. Plus, some might avoid 'rural-ish' markets and they might have property minimums that certain regions just can't offer (see Ohio and Alabama markets)

Most will go up to 4 units with no problem, but if you are going to start looking to do DSCR for properties with 5+ units, then you will certainly run into plenty of DSCR lenders who won't touch it.

And of course, any DSCR lender will wildly differ based on what your FICO is. From leverage that they will give to the rates, whatever your FICO is will dictate a lot of the innerworkings of a loan. On top of that, some DSCR lenders might charge more in fees and points, while providing quality service, so finding that sweet spot is key.

Long winded answer to an open-ended question, but (biased opinion) that is where a broker could come into play. Good DSCR brokers know the ins-and-outs of the DSCR programs and can get you the best rates/terms.

Good luck in your hunt! Happy to connect and help if I can