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A DSCR loan is designed for real estate investors or commercial property owners who are seeking financing for income-producing properties. Unlike traditional mortgages, which primarily focus on the borrower’s personal income and creditworthiness, DSCR loans evaluate the property’s cash flow potential.
This type of loan takes into account the property’s ability to generate sufficient income to cover its operating expenses and debt obligations. By considering the property’s revenue-generating potential, DSCR loans offer an alternative financing solution for those looking to invest in or expand their commercial real estate portfolio.