Looking for DSCR lenders

[Rob Tara]

Hi everyone,

I want to purchase a multi-family property and want to do it with a DSCR loan (this will be my first time using one). Thus, I'd like to ask for 1) lenders in the San Antonio area and 2) your advise choosing the right DSCR lender for my needs.

Thank you. 

[Lauren Robins]

When you're looking to purchase a multifamily property in San Antonio using a DSCR (Debt Service Coverage Ratio) loan, it's important to consider a few factors to help you choose the right lender and loan terms for your needs. DSCR loans are particularly attractive for real estate investors because they evaluate the property's income potential rather than the borrower's personal income, making it easier to qualify for larger loans.

There are a number of reputable lenders in the San Antonio area that offer DSCR loans. Longleaf Lending is one option that offers DSCR loans with interest rates starting at 6.6% and loans ranging from $75,000 to $3 million. They also have a minimum FICO score requirement of 660. LYNK Capital, located in Raleigh, NC, but with services nationwide, provides loans with no personal income verification required and offers up to 80% loan-to-value (LTV) ratios. They specialize in 30-year rental loans and also cater to multifamily property investments. Tidal Loans is another option, offering flexible terms and no seasoning requirements for their loans, starting at 7%. They also have lower minimum credit score requirements, making them an accessible choice for many investors.

To select the right DSCR lender for your investment goals, you'll want to compare several key factors. First, look at the loan terms and flexibility. Interest rates, loan-to-value (LTV) ratios, and repayment terms are all crucial to understand upfront. For example, some lenders may offer lower interest rates but higher fees, while others may provide more flexibility in loan structures, such as interest-only payments or longer repayment periods.

Another important consideration is property eligibility. Ensure that the lender finances multifamily properties, as some may specialize in single-family homes or specific types of residential properties. Some lenders may also have stricter requirements when it comes to property conditions, so verify that your investment property meets their guidelines.

The credit score and documentation requirements are also crucial. If you have a complex financial situation, look for lenders that offer loans with no personal income verification. DSCR loans are often more flexible when it comes to income verification, but each lender will have different guidelines.

Finally, consider the speed and efficiency of the lender. If you're working with tight deadlines or need a quick closing, ask about the typical processing and closing times. Some lenders can close in as little as 15-30 days, which could be a deciding factor if you're in a competitive market.

To help make the decision easier, consider comparing the following:

CoreVest Finance – Known for their experience in real estate investment loans, offering up to 80% LTV and flexible loan amounts.

Longleaf Lending – Offers fast closings with no income verification, making it an appealing option for investors with strong property cash flow.

LYNK Capital – Provides no personal income verification and is known for offering flexible loan terms and competitive rates.

Tidal Loans – Offers no seasoning requirements and interest-only payment options, which may be ideal for investors with a more complex financial picture.

Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice. No attorney-client, fiduciary, or professional relationship is established through this communication.