DSCR Lenders in South Carolina

DSCR Loan Solutions in South Carolina

Property investment has always been an attractive proposition, from a single property for passive income to full portfolios, and it relies on stable financing. You have many options in this area, and a DSCR loan in South Carolina is one of the most popular. But will it work for your goals?

At BrickWood Mortgage, we specialize in helping people to obtain mortgage products that suit their goals and financial needs, and this includes real estate investors. Whether you’re exploring the world of DSCR lenders for the first time or have been in the investment world for many years, call our friendly team today for help in making sound financial decisions.

Contact BrickWood Mortgage today to learn more about DSCR lenders and the application process. As leading mortgage brokers in South Carolina, we’ll always provide tailored, transparent advice. Call (843) 314-4101 or use the contact form on our website now!

What is a DSCR Loan?

Short for debt service coverage ratio, DSCR lending allows investors to borrow using rental cash flow rather than income or any other consideration.

When obtaining a traditional mortgage, lenders will likely ask for your DTI (debt-to-income) ratio, income, and tax returns. A DSCR loan in SC allows real estate investors to scale their portfolio by considering the cash flow of the property instead.

The Basics of a Debt Service Coverage Ratio Loan

What is the annual rental income of the property compared to the debt obligations? This is the primary question that a lender will ask. So long as you meet the minimum credit score requirements, and you’ll make enough in rental income to cover the mortgage, any prospective lender will know that you’re a reliable borrower.

Here are the steps you can expect during this process:

  • The gross rental income is calculated by choosing the lower of the lease agreement and a Single-Family Comparable Rent Schedule (Form 1007).
  • Instead of an appraiser, borrowers can also submit rental income history over the last 12 months.
  • The annual debt is considered, including insurance, principal, taxes, and other fees.
  • The DSCR number is the result of annual rental income divided by annual debt.
DSCR Lenders in South Carolina
DSCR Loan Solutions in South Carolina

Benefits of a DSCR Loan

With a more tailored qualification to investors and an emphasis on property cash flow, many real estate investors are attracted to this option. Let’s explore the benefits in more detail and learn whether a DSCR loan lender is the right option for you.

Simpler Qualification for Investors – Many investors appreciate not having to worry about pay stubs and W2, especially if they’re self-employed. While a minimum credit score is required, you don’t have to submit information about personal income history or job history.

High-Value Loans – With loans available up to around $5,000,000, you’re likely to find DSCR lenders that provide exactly what you need.

Flexibility – You can use a DSCR loan in South Carolina for an unlimited number of properties, perfect for investors with a broad range of properties in a portfolio. This flexibility in property type and value make these loans ideal for both new and experienced investors.

Short-Term and Long-Term Rentals – Whether you’re in the long-term rental or Airbnb market, you’ll have options with a DSCR loan.

What is a Good DSCR Score?

Typically, a good DSCR score is 1.00 or above – this is the resulting number of the annual rental income divided by the annual debt. The higher your score, the better rates you’ll find when comparing the market.

If your score is below 1.00, you’ll need to prove that you have liquid assets such as cash to support your application. Don’t worry, these are all things you can discuss when you reach out to BrickWood Mortgage. If a debt service coverage ratio loan doesn’t suit your needs, we’ll recommend other routes, such as a bank statement loan.

Why Choose BrickWood Mortgage?

  • Extensive experience in the loan market in South Carolina (since 2007).
  • One-to-one customer service, from start to finish.
  • Positive track record with helping first-time buyers, experienced real estate investors, and others.
  • Access to many national lenders for FHA loans, VA loans, conventional loans, DSCR loans, and more.
  • Leading resources on our website, such as mortgage calculators, FAQs, and in-depth guides.

If you want to explore DSCR lenders, contact our friendly, experienced team today!

What Our Customers Are Saying

Brian Reynolds

Timmy Nash with Brickwood Mortgage is by far the best in the business. I went through 2 different mortgage companies that said they could get

Read More »
John Echeveste

Paul worked wonders to get us into our new home. Brickwood worked very quickly and efficiently to help us purchase a home under tight time

Read More »
Alyssa, Myrtle Beach

I am very thankful that I was referred to BrickWood Mortgage Inc and especially Paul Hankins! This was my first home buying experience and thanks

Read More »