Areas We Serve

At Griffin, we can provide financing services to all areas of New Jersey. Some of the areas we serve include:

  • Edison
  • Haddonfield
  • Lakewood
  • Norwood
  • Ramsey
  • Upper Montclair
  • Elizabeth
  • Jersey City
  • Newark
  • Paterson
  • Roseland
  • Woodbridge

What Is a DSCR Loan?

DSCR loans in New Jersey are designed for real estate investors. A DSCR real estate loan uses the income generated by a investment property to determine if the cash flow is sufficient to cover the servicing debt. For the purposes of a DSCR loan, an investment property is one that generates income from tenants.

Essentially, DSCR loans allow New Jersey real estate investors to bypass the process of applying for a conventional loan. Instead, they can qualify for financing based on their DSCR, which measures a company’s cash flow versus its debt obligations.

How Does a DSCR Loan Work in New Jersey?

A traditional loan looks at the debt-to-income (DTI) ratio of the person that’s seeking to buy an investment property. A borrower that has an appropriate DTI ratio is considered as qualified for the loan because they demonstrated their ability to safely borrow. However, not all borrowers want to use their income to qualify for investment property loans for various reasons. In these cases, a debt service coverage ratio loan offers an alternative to traditional lending.

In order to qualify for a DSCR loan in New Jersey and secure financing through Griffin Funding, you must have a DSCR of .75 or above. You can use a DSCR calculator to figure out the total income of the property and compare that against the amount needed to pay the mortgage and related costs of ownership. If the property generates that much or more in income, you can potentially qualify for a DSCR loan.

How to Calculate DSCR

You can use a simple formula or a DSCR calculator to figure out if the target property generates enough income for a DSCR loan. The steps to calculate DSCR are as follows:

  1. Calculate the gross income from the property.
  2. Calculate the annual property debt including mortgage principal, taxes, interest, insurance and any other applicable fees.
  3. Divide the annual gross rental income by the annual debt to determine the ratio.

How to Get a New Jersey DSCR Loan

After you identify a property that you’d like to purchase using a DSCR loan, you have to take steps to calculate the DSCR. If you have a DSCR of at least .75, give us a call at Griffin Funding and speak to one of our lending experts about getting a DSCR loan through us. We’ll explain how our DSCR loan process works, then have you fill out an application for us to process and get you funding to purchase the commercial property.

Begin the application online or request a free quote today!

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Who Qualifies for a DSCR Loan in New Jersey?

You can qualify for a DSCR loan in New Jersey if you can demonstrate the following criteria:

  • Minimum 660 credit score
  • Maximum loan amount of $5,000,000
  • Minimum down payment of 20%
  • Conforming property type
  • Minimum DSCR of .75
  • 6-12 months of reserves required (except for cashout loans)

Who Are DSCR Loans for?

New Jersey debt service coverage ratio loans are for real estate investors that are looking to purchase income-producing properties. Loans taken out by LLCs and other corporate entities must be personally guaranteed.

See If You Qualify for a New Jersey DSCR Loan

A DSCR real estate loan for an investment property in New Jersey is a great alternative to seeking out traditional sources of funding. You may not qualify for a traditional mortgage or prefer to not use traditional funding sources for purchasing a property for any reason. A debt service coverage ratio loan is a valid type of Non-QM loan, has less stringent borrowing standards, and makes it easier to build a real estate portfolio. We at Griffin Funding are here to help you get a DSCR real estate loan so you can close on your purchase and move forward.

Griffin Funding is a mortgage company that offers a variety of financing products, including New Jersey DSCR loans to borrowers looking to buy investment property and grow their income. Contact us today to talk to a lending expert and discuss your options for obtaining a investment property loan. Our DSCR loan process is straightforward and easy to understand, and our lending experts are ready to answer any questions you may have. There is no limit on the number of properties you can buy using a DSCR loan, and we offer an unlimited cash out.

Explore our website or call us today at Griffin Funding to get a quote and learn more about debt service coverage ratio loans in New Jersey and other states.