DSCR / Rental Loans
DSCR / Rental Loans Overview:
· Long term loan typically minimum 3-year term
· Typically see 30yr fixed, 3/1, 5/1, 7/1 or 10/1 ARM options
· Prepayment penalties range from 5 / 4 / 3 / 2 / 1 sliding options
· Rates are slightly higher than conventional loans
· Cannot have a rehab component
· Cannot have lots of deferred maintenance or need major rehab
· Cannot be lived in by the borrower, MUST be a rental property
· Typically, a tenant or lease must be in place
· Lender wants to see last 2 months rent or proof of deposit
· Property must meet DSCR requirements: Long Term & Airbnb
· Property cannot be listed on MLS for sale