DSCR Loans in Nevada

Griffin Funding offers DSCR loans to qualifying investors across Nevada, including the following locations:

Keep in mind that this is not an exhaustive list. If you’re interested in learning more about DSCR loans in Nevada and how to secure a loan for a new investment property, please reach out to us to speak to one of our loan specialists today.

Nevada DSCR loans are designed for real estate investors looking to purchase rental properties. Investors can prove their ability to pay back a loan by demonstrating the income made from a property rather than from their salary or employment documentation. The debt service coverage ratio (DSCR) is used for this purpose.

The DSCR measures the amount of cash available to cover the mortgage payment. Lenders use the DSCR to assess what loan amount can be paid back from the income on a new property.

If you’re looking to invest in real estate, a DSCR loan can be a powerful tool to help you achieve your goals. They are generally used to finance a wide range of residential real estate investments. A DSCR loan in Nevada can be used for both short-term and long-term rentals. You can use Nevada DSCR loans to invest in single-family homes, multi-family units, condos, and townhomes.

You typically need to make a down payment of 15-20% of the property’s purchase price, depending on the lender and the specific terms of the loan. This down payment requirement ensures that you have sufficient equity in the property from the start.

Apply now for a DSCR loan in Nevada to explore your options and secure the financing you need to grow your real estate portfolio.

DSCR loans are popular for real estate investors who want to finance new properties. Nevada’s DSCR loan requirements are typically flexible. Here are some advantages of DSCR loans in Nevada.

Pros of DSCR Loans in NV:

• Lower documentation requirements: DSCR loans do not require job history verification.
• Faster closings: Investors can close on properties more quickly, avoiding lengthy bidding wars and securing investments faster.
• No property limits: There is no limit on the number of properties you can own with a DSCR loan.
• High loan limits: Borrowers can access DSCR loans up to $5,000,000.
• Unlimited cash-out option: Investors have the flexibility to take advantage of an unlimited cash-out option.
• Flexible down payment: The average down payment can fluctuate, but Griffin Funding can offer some as low as 20%.

It’s also important to note that Nevada has one of the most favorable tax climates for investors due to its lack of a state income tax, low property tax rates, and affordable housing options.

However, there are some potential disadvantages of DSCR loans in NV. Here’s a closer look at what you can expect.

Cons of DSCR Loans in NV:

• Higher interest rates: DSCR loans normally have higher interest rates than conventional loans.
• Limited to investment properties: These loans are specifically designed for investment properties, so they are not suitable for purchasing a primary residence.
• Complex Qualification Process: Although income documentation is less strict, the overall qualification process can be complex, especially for first-time investors.

Download the Griffin Gold app to help you overcome some of these hurdles. It allows you to compare mortgage options, manage your finances, track home values, and receive personalized support throughout your loan process.

It’s critical for real estate investors interested in securing a DSCR loan to consider how their DSCR is calculated since it will be used to analyze whether they can successfully make enough cash to cover their loan payments. That’s why a good DSCR is crucial, as it can significantly impact your ability to secure financing.

DSCR is calculated based on the amount of cash available to cover debts. Lenders may require a different DSCR, and in a good economy, borrowers have a better chance of securing loans with a lower DSCR. To calculate DSCR, gross rental income is divided by total debt obligations for the property.

Total debt obligations typically include expenses such as the total annual principle, taxes, interest, and HOA fees, if applicable. The higher the DSCR, the easier it is for borrowers to secure financing for their investment property. Griffin Funding does not factor expenses such as management fees, maintenance, utilities, and repairs into the DSCR calculation.

A DSCR calculator can help you estimate your ratio and explore your financing options, helping you better understand your potential DSCR and how it impacts your loan eligibility.

Many lenders require a DSCR of 1.25 to qualify for a loan; however, Griffin Funding allows real estate investors to qualify for DSCR loans in Nevada with a ratio less than 1. Our goal is to help more investors qualify for the loan they need so they can continue building their real estate portfolio.

It’s also important to note that Griffin Funding does not require reserves for cash-out loans, and only six months of reserves are required on all other loans unless the DSCR ratio is less than 1.

To qualify for a DSCR loan in Nevada, you’ll need to meet the following requirements:

• Minimum credit score of 620
• Minimum loan amount of $100,000
• Property must be an income-producing investment property
• Appraisal

Griffin Funding specializes in various types of Nevada home loans including:

• Non-QM loans – Non-qualified mortgage loans, or non-QM loans, are aimed at helping new home buyers who don’t have the standard documentation to prove their income such as a W-2 form and tax returns. DSCR loans, bank statement loans, asset-based loans, and interest-only loans are examples of non-QM mortgage options.
• Interest-only loans: Interest-only loans are loans without principal payments, and generally, the monthly servicing requirements are low. The borrower pays only the interest on the loan for some or all of the loan term and the principal balance does not change.
• VA loans: VA home loans are backed by the federal government and accessed through private lenders. They are only available to active service members, veterans, and spouses of fallen service members. VA loans offer several distinct benefits, including no down payment.
• Bank statement loans – Similar to DSCR loans, bank statement loans don’t require borrowers to present employer-verified information or tax documents in order to secure the loan. Borrowers simply need to show proof of income through regular deposits on their bank statements.

DSCR loans in Nevada are often the most effective way for real estate investors to get the money they need to lock in a new property. Additionally, Nevada is considered a tax haven state, making it a great place to do business as a real estate investor.

Reach out to learn more about DSCR loans in Nevada, including our interest-only loan options. Our team is highly experienced in providing new and seasoned real estate investors with the loan guidance and support needed to reach their goals.

To learn more about how to secure the best loan possible or apply for a new loan, you can call us at (855) 651-2871. Or, to get started now, you can submit an online application for a DSCR loan in NV.