You want to buy an investment property in Missouri. Affording the loan would be no problem if you could incorporate the revenue you will be generating with that property. There is a specific lending product that lets you do exactly that, called a DSCR loan.
McGowan Mortgages offers a competitive DSCR loan program that offers up to 85% LTV, depending on your qualifications.
What is a DSCR Loan?
DSCR is short for “debt service coverage ratio.” DSCR loans are classified as non-QM loans.
When you apply for a DSCR loan, your projected cash flow from the property is used to help determine if you qualify for the loan.
This is the formula for DSCR:
DSCR = Net Operating Income / Debt Service
These components comprise debt service:
- Principal repayment
- Lease payments
- Interest payments
Benefits of DSCR Loans in MO
- The income you will earn from your property is used as part of the calculations to determine loan eligibility. In some cases, this may make the difference between approval or denial. In others, it might mean qualifying for a more competitive rate than you would otherwise.
- Your personal income is not assessed during the qualification process, nor is your employment history or status.
- There is no limit on how many properties you can purchase with DSCR financing, which makes it ideal for expanding your real estate portfolio.
- You can close quickly when you apply for a DSCR loan since you do not need to provide much documentation. This also leaves you free to focus on selecting the ideal properties to buy.
Apply for a DSCR Loan in Kansas City or Beyond
Your investment dream property won’t wait forever. If you want to close before your competitors and start generating revenue from real estate in Kansas City or anywhere in Missouri, McGowan Mortgages can make it happen. To apply now to our McGowan Cash Flow (DSCR) Program, call (816) 631-9687 to schedule your consultation.
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