Easier qualification: DSCR loans are based on the property’s income rather than the borrower’s credit score or credit history. This makes it easier for borrowers with limited credit to secure financing.
Higher leverage: DSCR loans generally allow for higher levels of leverage than traditional financing options. This means that borrowers may be able to borrow a larger percentage of the property’s value.
Lower risk: Because DSCR loans are secured by the property’s income, they are considered less risky than other types of financing. This can translate to lower interest rates and fees for borrowers.ider all of their options before choosing this type of financing.