DSCR Loans

A Smart Solution for Real Estate Investors

At Ameristar Financial, we provide tailored financial solutions, including DSCR (Debt Service Coverage Ratio) loans, which are specifically designed for real estate investors looking to expand their portfolios. Unlike traditional loans that rely heavily on personal income verification, DSCR loans focus on the cash flow generated by the investment property itself.

What is a DSCR Loan?

A DSCR loan measures the ability of a property to generate enough income to cover the mortgage payments. The Debt Service Coverage Ratio is a key indicator used by lenders to evaluate the financial health of the property.

Profits

Why Choose a DSCR Loan?

No personal income verification required

DSCR loans rely on the property’s cash flow, not your personal income.

Quick and streamlined approval process

With fewer requirements compared to conventional loans, DSCR loans can often be approved faster.

Great for real estate investors

Ideal for those who own multiple properties or need a loan that evaluates rental income rather than personal finances.

Flexible down payment and loan terms

Competitive terms that suit your investment strategy and cash flow needs.

Flexible down payment and loan terms

Competitive terms that suit your investment strategy and cash flow needs.

Use for residential or commercial properties

Whether you’re purchasing single-family homes, multi-unit properties, or commercial real estate, DSCR loans offer versatility.

Build your portfolio with ease

As long as your property generates sufficient income, securing additional loans becomes easier.

Why Choose a DSCR Loan?

Fast funding

No personal income verification required

DSCR loans rely on the property’s cash flow, not your personal income.

Flexible loan terms

Quick and streamlined approval process

With fewer requirements compared to conventional loans, DSCR loans can often be approved faster.

Cover purchase and rehab costs

Great for real estate investors

Ideal for those who own multiple properties or need a loan that evaluates rental income rather than personal finances.

Credit

Flexible down payment and loan terms

Competitive terms that suit your investment strategy and cash flow needs.

Payment

Use for residential or commercial properties

Whether you’re purchasing single-family homes, multi-unit properties, or commercial real estate, DSCR loans offer versatility.

Flexible uses

Build your portfolio with ease

As long as your property generates sufficient income, securing additional loans becomes easier.

How Fix and Flip Loans Work

How DSCR is Calculated

The Debt Service Coverage Ratio is calculated as follows:
DSCR= NetOperatingIncome (NOI) / TotalDebtService (TDS)

A DSCR of 1.0 means the property generates exactly enough income to cover the mortgage payments. Generally, a DSCR of 1.2 or higher is preferred by lenders for approving loans.

Benefits of DSCR Loans

  • No tax returns required
  • High loan-to-value (LTV) options available
  • Cash-out refinancing allowed
  • Interest-only loan options available

Ready to take the next step in your investment journey? Contact Ameristar Financial today to learn more about how a DSCR loan can help you achieve your real estate investment goals.

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Key Benefit

How DSCR is Calculated

The Debt Service Coverage Ratio is calculated as follows:
DSCR= NetOperatingIncome (NOI) / TotalDebtService (TDS)

Number1

Net Operating Income (NOI)

The property’s annual gross income minus operating expenses.

Number2

Total Debt Service (TDS)

The total annual mortgage payment, including principal and interest.

A DSCR of 1.0 means the property generates exactly enough income to cover the mortgage payments. Generally, a DSCR of 1.2 or higher is preferred by lenders for approving loans.

Benefits of DSCR Loans

No tax returns required

High loan-to-value (LTV) options available

Cash-out refinancing allowed

Interest-only loan options available

Ready to take the next step in your investment journey? Contact Ameristar Financial today to learn more about
how a DSCR loan can help you achieve your real estate investment goals.