Debt Service Coverage Ratio (DSCR) Loans for Arizona Real Estate Investors

If you’re looking to expand your rental property portfolio, a Debt Service Coverage Ratio (DSCR) loan from the Scottsdale, AZ-based LM2 Investment Group can make that possible.

The most notable feature of DSCR loans: they’re geared toward investors, so you can qualify for them based on the income that the property would generate, rather than through documentation of your personal income.

For real estate investors, some of the best applications for DSCR financing include purchase of rental properties and refinancing investment assets.

LM2 Investment Group offers flexible lending solutions with lightning-fast loan approval, so Arizona-based investors can act quickly when they recognize a valuable investment opportunity.

What Sets DSCR Loans Apart From Other Loan Options

LM2 Investment Group is committed to providing rapid financing with flexible terms for Arizona-based real estate investors.

DSCR loans make it possible for investors to secure financing based on a property’s rental income potential, rather than based on personal income documentation like tax returns and employment income.

The decision of whether to offer a DSCR loan for a property is based on that property’s Debt Service Coverage Ratio: a measurement of whether it produces sufficient income to cover its loan payments.

This means that DSCR loans make the process of qualifying for a loan significantly faster and easier.

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Reasons to Choose LM2 Investment Group for Your DSCR Loan

Specialized Focus

LM2 Investment doesn’t just offer DSCR loans. We specialize in DSCR loans, because our primary goal is to empower real estate investors to expand their portfolios quickly and easily.

Fast Approval for Loans

We can often review and approve DSCR loans in 24 hours or less, so you can immediately respond to promising investment opportunities.

Flexible Terms

Every investment is unique, so it’s important that we fine-tune the terms of your loan to suit your investment strategy and your particular goals for the property.

Deep Knowledge of AZ Real Estate

Based in Scottsdale, our team has been working with investors in the Arizona real estate market for many years, both within the Phoenix metropolitan area and across the state.

DSCR Loans: Frequently Asked Questions

What is a DSCR loan?

A Debt Service Coverage Ratio (DSCR) loan is a type of mortgage geared toward investment properties. Rather than qualifying for DSCR loans based on their personal income, the loan is offered based on whether rental income for the property can cover the cost of loan payments.

How do you calculate a property’s DSCR?

In order to calculate the DSCR, divide the property’s net operating income by its total loan payment. If the resulting number is equal to or greater than 1.0, it demonstrates that the property can likely produce sufficient income to cover for its mortgage payments.

Do I need to submit tax returns or W-2s to apply for a DSCR loan?

No. In most cases, as part of the DSCR loan application process, there is no need to provide documentation of your personal income.

What kinds of properties can qualify for DSCR loans?

In most cases, DSCR loans are used to invest in income-producing residential properties like single- and multi-family rentals, as well as both short-term (vacation) rental properties and longer-term properties.

Can I live in a property financed with a DSCR loan?

No, DSCR loans cannot be used for owner-occupied homes. They are intended for investment properties only.

Can I use a DSCR loan for refinancing?

Yes, you can use a DSCR to refinance an existing rental property. This includes cash-out refinances, which make it possible for investors to access equity for new investments.

A DSCR Loan Can Finance Your Next Investment

In many cases, a DSCR loan is the fastest, most flexible way to purchase or refinance an income-generating property. Contact LM2 Investment Group today to get started and explore DSCR loan options for your next real estate investment.