DSCR Loans
Unlock Your Vision: Realize the Potential
Experience the leading destination for funding your real estate ventures at Kalakrithi Capital. Our affiliate partner Alpha Funding provides specialized loan programs that cover fix and flips, new construction, and rentals. Conducted by our in-house underwriters, swift evaluations ensure timely approvals. Whether you're a seasoned investor or just starting, VESBA empowers your real estate journey. Apply now for expert funding services.
Debt Service Coverage Ratio (DSCR)
The debt service coverage ratio is a ratio of a property’s annual gross rental income and its annual mortgage debt, including principal, interest, taxes, insurance, and HOA (if applicable). Lenders use DSCR to analyze how much of a loan can be supported by the income coming from the property as well as to determine how much income coverage there will be at a specific loan amount. Lenders do not take into account expenses such as management, maintenance, utilities, vacancy rate, or repairs in the debt-service-coverage ratio calculation.
DSCR loan enables real estate investors to get a loan because it takes into account cash flow from investment properties rather than pay stubs or W-2s, which many investors do not typically have. Lenders use DSCR to evaluate a borrower’s ability to make monthly loan payments.Deductions from properties may lower taxable income, making it hard for investors to prove their true income. Lenders use DSCR to determine whether someone can make loan repayments. Otherwise, many investors might struggle to meet the basic eligibility standards for real estate loans.
Think you qualify for a loan? Contact us today to find out!
How Does a DSCR Loan Work?
Because real estate investors write off expenses on their properties, some may not qualify for a conventional loan. The debt service coverage ratio loan allows these individuals to qualify more easily because they don’t require proof of income via tax returns or pay stubs, which investors either don’t have or don’t represent their true income due to write-offs and business deductions.
Real estate investors looking for home buying tips should consider a DSCR loan because it’s ideal for properties you intend to rent out or otherwise turn into income-generating properties. From renting to a long-term tenant or operating a short-term rental business on Airbnb, there are many situations where a DSCR loan is a good option, especially if you don’t have W-2 income.Some of the property types you can use a DSCR loan for include:
a . Single Family Residences (SFR), including single family homes, condos, and townhomes.
b. Multifamily properties(2-10 Units). Small balance DSCR commercial loans are an alternative to adjustable regional bank loans that have balloon payments.
c Rural (acreage limitations apply and the property’s income must be supported by comparable rents in the area).
Ready to apply for a loan? Contact us today.
Our Funding Programs
Fix & Flip
Short-term financing option designed to fund the purchase and renovation of a property with the intent of quickly selling it for a profit
New Construction
Funding for developers to build residential new construction homes through a short-term financing solution.
Rental Application
Competitive financing for real estate investors holding residential properties for rent.
Commercial Bridge
Bridge loan facilitates the purchase and enhancement of a commercial multifamily or mixed-use property.
Transactional Funding
Short-term loans enable seamless real estate buying and selling, empowering confident A-B-C transactions.
Cash-out Refinance
Unlock cash from your property's equity quickly and reliably through our streamlined cash-out refinance program.
(914) 671-0078
info@kalakrithicapital.com
2389 Main St. Suite 100, Glastonbury CT 06033
Important Information
The above content is provided for general informational purposes only. It is not intended to constitute investment advice or any other kind of professional advice and should not be relied upon as such. Before taking action based on any such information, we encourage you to consult with the appropriate professionals. We do not endorse any third parties referenced. Market and economic views are subject to change without notice and may be untimely when presented here. All images and figures shown are for illustrative purposes only and are not actual customer or model returns. Do not infer or assume that any securities, sectors, or markets described were or will be profitable. Investing involves risk, including the possible loss of your investment. Past performance does not guarantee future results. Please consider carefully the investment objectives, risks, transaction costs, and other expenses related to an investment prior to deciding to invest.
Any link or reference herein to financial publications is for information purposes only.
Kalakrithi Capital does not endorse, favor, or recommend any third-party website, commercial product, process, or service.
Kalakrithi Capital cannot verify the accuracy, completeness, or quality of the content of any third party website, or any products or services offered via those websites. To the extent any linked third party website collects personal information from end-users,
Kalakrithi Capitall cannot be held liable for such commercial activities.