No Point DSCR Rental Loan

May 1, 2024

No Point DSCR Rental Loan

FBC Funding, LLC is excited to announce it’s No Point DSCR Rental Loan as one of the many options we have for real estate investors. A real estate investor may chose this option to limit fees and yet still have a relatively good interest rate. This No Point DSCR Rental Loan is available for single properties and a portfolio of no owner occupied properties. The rate is determined by credit, experience, loan to value and cash flow. Listed below are the main terms for the No Point DSCR Rental Loan for real estate investors.

The No Point DSCR Rental Loan: What is it

A DSCR Rental Loan is a business purpose mortgage made to a business entity such as an LLC. These loans usually require a personal guarantee and the qualifications are based on the guarantors credit score, the guarantors experience, the cash flow of the property and the loan amount as compared to the value of the property. DSCR is the Debt Service Coverage Ratio. This means the rental income of the property determines the if there is cash flow to cover the mortgage and property expenses plus provide a profit to the investor. This is why there is no requirement for employment verification or income verification. Additionally, the loan does not show as a personal debt as it is a business debt and not on a real estate investors credit report. There are many other advantages of a DSCR Rental Loan for real estate investors including tax benefits and limited liability to the real estate investor.

The No Point DSCR Rental Loan: Credit

As a long term loan the credit score and credit profile are primary qualifying factors. Having a good or great credit score is not all it takes to qualify, but the credit profile is important also. The credit score determines the maximum Loan to Value as well as the rate. The higher the credit score the better the rate.

The No Point DSCR Rental Loan: Experience

The experience as a real estate investor owning and managing rental property is important in a DSCR Rental Loan. Just because someone has good credit and money does not make them a good landlord. The DSCR Rental Loan is a Landlord loan and experience mitigates risk. Risk is what pricing is all about. In the No Point DSCR Rental Loan greater experience is rewarded with lower rates.