At American Mortgage we offer DSCR’s. Understanding how Florida DSCR loans work requires basic knowledge of the debt service coverage ratio (DSCR) itself. So, your debt service coverage ratio is the ratio of your cash flow to the amount of debt you should repay if you take out a loan. This refers to your annual rental income vs. your annual debt as a rental property investor.
Debt service coverage ratio loans are non-QM loans, which means you won’t have to go through the traditional mortgage application procedure to get it. When applying for conventional Florida home loans, you typically need to get a credit report, disclose your assets, prove your income and employment, and jump through various additional symbolic hoops. Indeed, some non-QM loans are designed for typical homebuyers who do not qualify for a conventional mortgage, but DSCR loans are solely for property investors.
The most significant advantage of Florida DSCR loans is that you may be eligible for one even if you are ineligible for a conventional loan in Florida. This allows more borrowers to get a loan and step into the world of real estate investing. You can receive the cash you need to invest in Florida rental homes if you have a good DSCR. If you’re considering investing in real estate property in Florida, a DSCR loan may be the right option for your needs.