DSCR loan programs, also known as debt service coverage ratio loans, are a type of loan offered to businesses and real estate investors. The loan amount is determined based on the borrower’s ability to repay the loan, as measured by their debt service coverage ratio.
Pros:
1: Flexibility: DSCR loans offer flexible terms and repayment schedules, making them suitable for a wide range of borrowers.
2: Favorable rates: Because DSCR loans are secured by the borrower’s assets, they often come with lower interest rates than unsecured loans.
3: Lower risk: By assessing the borrower’s ability to repay the loan, DSCR loans mitigate the lender’s risk of default.
4: Higher loan amounts: DSCR loans can provide larger loan amounts than other types of loans, due to the emphasis on the borrower’s ability to repay.
5: Longer repayment terms: DSCR loans typically have longer repayment terms than other types of loans, allowing borrowers to make smaller, more manageable payments over time.
Cons:
1: Higher requirements: DSCR loans often require more extensive financial documentation and a higher credit score than other types of loans.
2: Lengthy application process: Due to the thorough underwriting process, DSCR loan applications can take longer to process and fund than other types of loans.
3: Collateral required: DSCR loans are typically secured by the borrower’s assets, such as real estate, which can be a disadvantage for borrowers who don’t have sufficient collateral.
4: Lower LTV ratios: DSCR loans may have lower loan-to-value (LTV) ratios than other types of loans, meaning borrowers may need to provide a higher down payment.
5: Prepayment penalties: Some DSCR loans may have prepayment penalties, which can be a disadvantage for borrowers who want to pay off their loan early.
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Carlos & Aubrey R.
2023-03-17"Buying a home is incredibly stressful, and for someone without a financial background securing a mortgage is the most confusing part. For some crazy reason we have put ourselves in the buying/selling position multiple times in the past 5 years...
Carlos & Aubrey R.Carlos & Aubrey R.55stars"Buying a home is incredibly stressful, and for someone without a financial background securing a mortgage is the most confusing part. For some crazy reason we have put ourselves in the buying/selling position multiple times in the past 5 years...
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2023-03-17"We were looking at available options for possibly selling or refinancing our home. We initially tried working with our financial institution, but became frustrated at their inflexibility & disorganization. We decided to reach out to Dale b...
Steve & Shanon M.Steve & Shanon M.55stars"We were looking at available options for possibly selling or refinancing our home. We initially tried working with our financial institution, but became frustrated at their inflexibility & disorganization. We decided to reach out to Dale b...
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2023-03-17"I have been working with Dale for 21 years. He has taken part in the purchase of each of my properties both personally and professionally. He always responds quickly and with concise instructions on what is needed for my next investment. Throu...
Emily M.Emily M.55stars"I have been working with Dale for 21 years. He has taken part in the purchase of each of my properties both personally and professionally. He always responds quickly and with concise instructions on what is needed for my next investment. Throu...
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Valerie G.
2023-03-26"I confidently endorse and recommend working with Dale DeShaw. I have been fortunate to work with Dale three times in the past five years for financing and refinancing properties and not only has it had a positive financial yield but it was a p...
Valerie G.Valerie G.55stars"I confidently endorse and recommend working with Dale DeShaw. I have been fortunate to work with Dale three times in the past five years for financing and refinancing properties and not only has it had a positive financial yield but it was a p...
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Chris H.
2023-04-14"I have had the great fortune to be able to work with Dale several times over the last 20 years. Dale patiently walked us through our first home purchase, then a refinance when the rates dropped to the purchase of a brand new home. Dale always ...
Chris H.Chris H.55stars"I have had the great fortune to be able to work with Dale several times over the last 20 years. Dale patiently walked us through our first home purchase, then a refinance when the rates dropped to the purchase of a brand new home. Dale always ...

