Commercial Real Estat eal Estate Loan Products
There are many commercial real estate loans. A very popular loan is the Debt Service Coverage Ratio Loan, known as the DSCR Loan. A DSCR loan is a unique mortgage product designed specifically for real estate investors that qualifies the loan based on the property's potential rental income rather than the borrower's personal income. • Allows financing up to 20 properties • Uses projected monthly rental income to qualify • Eligible for investment purchases, rate/term, and cash-out refinances • Can close in an LLC Key Features of UWM's DSCR Loan: • Pre-payment penalty options available (3/2/1, 2/1, 1/1) • Designed for real estate investors looking to expand their portfolio • Unique Calculation Method: The Debt Service Coverage Ratio (DSCR) is calculated by dividing the gross rental income by the proposed PITI(a) (Principal, Interest, Taxes, Insurance, and Association fees).
• Rental Income Scenarios: • Long-term lease properties • Unleased properties • Short-term rental properties • Important Limitations: • Not available in West Virginia • Not available for Texas 50(a)(6) loans • Pre-payment penalty options vary by state
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