Before You Pay for a DSCR Appraisal, Ask This One Question
Wednesday, October 28
I’ve seen investors pay for an appraisal on a condo, only to have the loan die because of the HOA’s litigation or investor concentration, not the property itself. So let’s clear up which property types DSCR loans actually cover. The common assumption: DSCR is for apartment buildings. The reality:...
The Hidden Costs That Can Change a DSCR Deal
Wednesday, October 21
The payment is not the whole investment A rental can appear attractive when the analysis stops at principal and interest. But DSCR underwriting and real-world profitability are different tests. A lender may calculate qualifying DSCR using eligible rent divided by principal, interest, taxes, insur...
DSCR Loans Explained: What the Ratio Really Tells You
Friday, October 16
A debt-service coverage ratio (DSCR) compares a property’s qualifying rental income with its required debt payments. For a simple illustration, if a property produces $2,400 in eligible monthly rent and its principal, interest, taxes, insurance and association dues total $2,000, the ratio is 1.20...