DSCR Loan Advantages

[Kelly Schroeder]

For landlords expanding their rental portfolios, have you compared DSCR-based financing versus conventional loans lately?

DSCR seems to be growing in popularity due to flexibility and less paperwork — but I'd love to hear if others have seen any drawbacks when scaling with DSCR.

[Chris Seveney]

Quote from @Kelly Schroeder:

For landlords expanding their rental portfolios, have you compared DSCR-based financing versus conventional loans lately?

DSCR seems to be growing in popularity due to flexibility and less paperwork — but I'd love to hear if others have seen any drawbacks when scaling with DSCR.

DSCR is less paperwork but as it continues to move to securitizations the paperwork is not that much less. Rates are slightly higher which makes sense due to added risk, but the fact you can scale based on property vs. having it go against your personal credit is incredible and allows for the opportunity to build a significant portfolio in real estate.