Who is using DSCR Loans?

[Alex Turner]

DSCR or (Debt Service Coverage Ratio) loans are loans granted on the bases that an investment property will cash flow based on a 1007 Rent schedule appraisal.

The rent schedule is based on LTR rents.

The greatest advantage to these loans that there is no income or employment required to qualify.

I wonder for investors out there that look at properties for STR, when you do an analysis of the property for STR would the property still cashflow for LTR as well? I assume you look at STRs for greater cash flow, but interested on the comparison between the analysis of a property for STR vs. LTR.

Thanks

[Joshua Strickland]

Certain lenders are doing these based off STR income now too. Host, Visio, The Lender, plenty others.

And yes they are a tick higher, but if .25 - .75% makes the loan not a good deal then the property was probably not going to work either way.