Fast, Flexible DSCR Loans for Real Estate Investors
No Prepayment Penalty | 12 Months or Less Terms
Looking for a real estate investment loan based on your ability to generate cash flow?
A Debt Service Coverage Ratio (DSCR) loan is a type of commercial lending instrument that evaluates a borrower’s capacity to repay a loan based on their cash flow and ability to service the debt. The DSCR is a financial metric commonly used by lenders to assess the creditworthiness and financial stability of a business or individual before granting a loan. It determines the extent to which a borrower’s net operating income (NOI) can cover their debt obligations, including principal, interest, and other related expenses.
Intrust Funding’s DSCR loans are designed to provide you with the financial flexibility you need to succeed in the ever-changing real estate landscape. By prioritizing your property’s cash flow, we’re able to offer you competitive loan terms that maximize your investment potential.
48 Hour Closing
We can close a deal within 48 hours, which is critical when you need to act quickly to secure your replacement property.
We offer a wide range of loan options to meet your specific needs, including fix-and-flip loans, buy-and-hold loans, and more.
No Draw Inspections
Our draw process requires no inspections, so you can complete your project quickly without having to wait for appraisals or other time-consuming evaluations.
We Are Local Investors
Our team of experienced professionals understands the local real estate market and can provide you with the guidance you need to make informed investment decisions.
Choose Intrust Funding for your next real estate investment and discover the benefits of our fast, flexible DSCR loans. Contact us today to learn more about how we can help you unlock the full potential of your real estate ventures.
We help with DSCR loans for real estate investors in Washington state.
DSCR Loan Program
DSCR loans can be used for acquiring, expanding, or refinancing commercial and, in some cases, residential investment properties, providing a flexible and accessible financing alternative for real estate investors.
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is a type of commercial loan that evaluates a borrower’s capacity to repay a loan based on their cash flow and ability to service the debt. Lenders use the DSCR to assess the creditworthiness and financial stability of a business or individual before granting a loan.
How is the DSCR calculated?
The DSCR is calculated by dividing a borrower’s annual net operating income (NOI) by their annual debt service (principal, interest, and other related expenses). For example, if a business has a net operating income of $100,000 and an annual debt service of $80,000, the DSCR would be 1.25 ($100,000 / $80,000).
What is a good DSCR?
Lenders typically look for a DSCR of at least 1.20 to 1.25, depending on the industry and specific circumstances. A higher DSCR demonstrates a stronger capacity to service the loan, which reduces the risk for the lender and may result in more favorable loan terms for the borrower.
What types of businesses can benefit from DSCR loans?
DSCR loans are particularly suitable for businesses with steady cash flow, such as those in the real estate or manufacturing sectors. They are also helpful for businesses seeking to expand, invest in equipment, or refinance existing debt.
Can a borrower with a low credit score or lack of collateral qualify for a DSCR loan?
Yes, a borrower with a low credit score or lack of collateral may still qualify for a DSCR loan. The primary focus of a DSCR loan is the borrower’s cash flow, rather than their credit score or collateral.
Are there any drawbacks to DSCR loans?
The main drawback of a DSCR loan is that it may have higher interest rates compared to traditional loans, as lenders consider these loans to be riskier. However, for businesses with consistent cash flow or those looking to expand, DSCR loans can be an attractive financing option.
Can I use a DSCR loan for residential properties?
DSCR loans are primarily designed for commercial properties, but some lenders may offer DSCR loans for residential investment properties as well.