DSCR loans are a great loan for investors. An investor can finance as many as 20 rental properties based on the rental income of the property. Loan amounts can be as high as 3 million dollars depending on the property location and type. They also usually have a minimum loan amount requirement of 100,000.
Most of these loans will require at least 20% down and rates can be higher than traditional financing. However, if you are in a great rental market this is a great way to grow your financial portfolio.
Some lenders will allow as low as a 620-credit score but of course the better your score the better the rates. Lenders will often offer an option for you to add a prepayment penalty to the loan to improve the rate.
These loans will usually require reserves to cover rents up to 6 months in some cases.