Skip to main content

There are many investment property loans and all of them offer different solutions. Trying to find the best fit for your rental property can feel overwhelming. At Newfi, we offer simple solutions for different types of investment properties through our Debt Service Coverage Ratio (DSCR) loans. Today, we’re breaking down what is a Debt Service Coverage Ratio (DSCR) loan and why it might be the best solution for your lending situation.

Defining Debt Service Coverage Ratio (DSCR)

A Debt Service Coverage Ratio or DSCR loan is an investment property mortgage that borrowers qualify for based on the cash flow of the rental property. A lender uses the estimated market rent for an investment property instead of employment and debt qualifications so that investors can separate their property income from their personal income. These loans are also referred to as business purpose or private lender loans.

What Are the Benefits of DSCR?

Fewer Documents Needed

Because DSCR loans qualify borrowers based on their expected market rent, we don’t need proof of income or employment. That means we won’t look at your tax returns, pay stubs, or debt at all during the loan process! Newfi simplifies the loan process by requiring less documentation.

Easily Add Investment Properties to Your Portfolio

At Newfi we want our borrowers to grow their real estate portfolio, so we allow for unlimited properties! With our DSCR loans, borrowers can qualify without restrictions on the number of properties in their real estate portfolio.

Use Cash-Out Equity from Other Properties Towards New Investments

We understand that growing your real estate portfolio means having the best options available. With our DSCR loans, borrowers can take the equity out of an existing property and put it into a new investment property mortgage.

Refinance Your Vacant Properties

Renovating a property is hard enough without having to worry about your tenants being there. That’s why at Newfi, we offer refinancing on vacant investment properties!

A Mortgage Option for Your Airbnbs and VRBOs

DSCR loans allow for both short-term and long-term rental properties. When refinancing your home, you can use both short-term and long-term rental history to qualify.

Newfi’s Simple Solutions

With less documentation, faster closing, and innovative technology, Newfi is here to make the investment property loan process easier. With our knowledge and friendly service, borrowers never have to feel as if they’re on their investment property journey alone.

Interested in learning more about DSCR loans or investment properties? Talk to one of our loan officers today!

Don’t just take our word for it. Read any of our 1,300+ Newfi reviews and see what our clients have to say!

Close Menu