Areas We Serve
Griffin Funding offers Delaware DSCR loans throughout the state of Delaware, including the following cities:
What Is a DSCR Loan?
A DSCR loan is a Non-QM loan that uses a borrower’s debt service coverage ratio (DSCR) to identify their ability to repay. This ratio is found by comparing an investor’s cash flow against their debt. In simple terms, the DSCR is an investor’s estimated annual rental income divided by their debt.
DSCR investor loans allow investors to qualify for a loan based on the income they receive from non-owner occupied rental or investment properties.
Are DSCR Loans for Investors?
Unlike traditional mortgage programs like FHA loans and VA loans, Delaware DSCR loans are designed for real estate investors who want to qualify for a loan based on cash flow rather than proof of income, employment verification, and tax returns. DSCR loans are an attractive option for investors because they identify a borrower’s ability to repay quickly and may be ideal for those who don’t qualify for a standard loan because they deduct their business expenses from their income.
Commercial DSCR loans can be used for a variety of real estate investments, including short-term rentals like Airbnbs and long-term rentals like multi-family properties that are held in an LLC.
Benefits of a DSCR Loan in Delaware
Delaware DSCR mortgage loans can generate cash flow by qualifying borrowers based on their ability to generate rental income to cover the mortgage payment, ultimately freeing up cash flow for investors. Some key benefits of Delaware DSCR loans include the following:
- No personal income requirement
- Quicker closing times
- Loan amounts up to $5,000,000
- Unlimited cash-out
- As little as 20% down
- Minimum credit score required
- Ideal for new and veteran investors
- Interest-only loan options
- Long-term and short-term rentals are eligible
- Close in an LLC
DSCR loans in Delaware are a great option for investors who aren’t eligible for conventional loans based on income requirements, making it possible for anyone to become an investor based on their estimated cash flow rather than personal income and job verification.
Since many investors take deductions on their taxes for business expenses, their net income may not qualify them for a traditional mortgage loan. However, a DSCR loan in Delaware allows you to purchase an investment property without the need to verify income, making them significantly more accessible to borrowers. In addition, because the requirements are less stringent, they offer a faster time to close with a streamlined application process.
How to Qualify for a DSCR Loan in Delaware
The most significant requirement to qualify for a DSCR loan in Delaware is your DSCR, which tells lenders whether or not you have the ability to repay. Every Delaware DSCR lender has its own criteria, which borrowers must meet to be approved for a loan. A qualifying DSCR typically ranges from 1.0 to 1.5, with a DSCR of 1 indicating that your income equals your annual debt.
However, with Griffin Funding, you can qualify for a Delaware DSCR loan with a DSCR as low as 0.75, qualifying with the potential cash flow of the property rather than any other strict requirements like income. However, you can get lower interest rates and avoid requiring 12 months of reserves by having a higher DSCR.
DSCR loans also require a minimum down payment and credit score. DSCR loans also require an appraisal to establish the loan’s value and ensure the loan is fair.
If you don’t qualify for DSCR investor loans, you still have options at Griffin Funding. We offer several loan options for investors, including Non-QM loans like bank statement loans and asset-based loans.
How to Apply for a DSCR Loan in Delaware
Getting approved for a DSCR investor loan is easy because it depends on your property income rather than your personal income. You can apply for a DSCR loan in Delaware by working directly with a Non-QM lender like Griffin Funding. You can complete our online application or call us at (855) 394-8288 to begin the application process. We’ll ask for information about the investment property you intend to purchase, including the address, size, number of units, and estimated income.
Next, we’ll identify whether you qualify for a loan by calculating your DSCR. We don’t need information about your financial history, including personal income. Instead, we’ll learn about your business and rental property. Once you’re approved for the loan, we’ll provide you with an estimate.
Once you lock in your rate, we’ll send over paperwork you can sign digitally, along with a list of documentation we’ll need from you to secure your loan. It’s just that easy.
See If You Qualify for a DSCR Mortgage in Delaware
Growing your investment business is easier when you have loan options. Even if you don’t qualify for a traditional loan, you may still be able to purchase an investment property. Delaware DSCR loans can help new investors break into the industry, and veteran investors take their businesses to the next level.
Whether you’re looking for short-term rental funding or long-term financing, Griffin Funding can help with DSCR mortgage loans in Delaware. We have interest-only options available and require a lower DSCR than many other mortgage lenders, allowing you to free up cash flow for your real estate endeavors.
Find out if you qualify for a DSCR loan in Delaware by contacting us today. If you don’t qualify, we can help you find other mortgage loan options you may be eligible for. You can call us at (855) 394-8288, or, if you’re ready to begin the application process, you can complete our online application form.