DSCR Loan Georgia

30-year fixed DSCR Loan Georgia for rental properties

Interest Ratefrom 7.5%
Origination Fee2-3%
Loan To Purchase Priceup to 80%
Loan To Valueup to 80%
Minimum DSCRNone
Term30-yr fixed rate
Minimum Loan Amount$100,000
Maximum Loan Amount$2,000,000
Minimum FICO680
Type of PropertyResidential 1-4 units

What You Need To Know About Georgia DSCR Loans

There are a few things you should know about DSCR Loans in Georgia.

Firstly, the Georgia property market is currently going through a growth spurt. This bodes well for long term real estate investors.

In addition, the average property price in Georgia isn’t too expensive. In fact, the average home value in Georgia ($318,919) is less than the average home value in the US ($348,853).  Based on these numbers, it’s fair to say that the Peach state offers excellent value for money. There are a number of vibrant cities that you can invest in, and the rental rates are respectable.

The Georgia market also caters to fix-and-flip investors. Provided you can identify a property that meets your investing requirements, there is every reason to consider investing in the Georgia property market.

DSCR Loan Georgia Requirements

  • Interest Rate: from 7.5%
  • Minimum DSCR: None
  • Minimum FICO: 680
  • Down Payment Required: 20%
  • Loan To Value: up to 80%
  • Loan To Purchase Price: up to 80%
  • Minimum Loan Amount:$100,000
  • Maximum Loan Amount: $2,000,000
  • Origination Fee: 2-3%

When considering a real estate investment loan in Georgia, key factors to bear in mind are as follows:


Interest Rate: The Georgia DSCR loan carries a fixed interest rate of 7.5%, impacting the overall borrowing cost and influencing the investment’s financial feasibility.

Minimum DSCR: Notably, there is no minimum debt service coverage ratio (DSCR) mandated, providing greater flexibility in loan structuring.

Credit Score: Eligibility for the loan requires a minimum FICO score of 680, indicating a relatively good credit history for the borrower.

Down Payment: A 20% down payment based on the property’s purchase price is necessary, reducing the lender’s risk and ensuring the borrower’s significant stake in the investment.

Loan-to-Value (LTV): The loan can cover up to 80% of either the property’s value or purchase price, necessitating a minimum 20% down payment from the borrower.

Minimum & Maximum Loan Amounts: The loan is available for amounts between $100,000 and $2,000,000.

Origination Fee: A lender’s origination fee of 2-3% of the loan amount applies to cover administrative costs.

In summary, a Georgia DSCR loan offers a fixed interest rate of 7.5%, without a minimum DSCR requirement. To qualify, borrowers need a minimum FICO score of 680 and must provide a 20% down payment. The loan-to-value and loan-to-purchase price ratios permit up to 80% financing, and the loan amount can range between $100,000 and $2,000,000. Additionally, an origination fee of 2-3% is applicable. Careful consideration of these factors will enable potential borrowers to evaluate whether a Georgia DSCR loan aligns with their investment needs.


DSCR Loan Georgia Down Payment

At the current moment in time, investors are required to make a 20% down payment in order to secure a DSCR Loan in Georgia.


DSCR Loan Georgia Interest Rates

The interest rates for DSCR Loans in Georgia currently start at 7.5%. However, it is important to recognize that there several factors that determine the final interest rate offered to rental property investors in GA. These factors include:

  • FICO Score & Credit History
  • The Investment Property
  • Real Estate Investing Experience
  • The Current Repo Rate
  • The Local Property Market Where The Property Is Situated

There are also other considerations that a loan origination team will consider before offering the final terms of the DSCR loan.


How To Use DSCR Loans To Buy Rental Properties In Georgia

One of the biggest advantages of DSCR loans is that the rental income potential of the investment property is factored into the loan terms. So, instead of being personally responsible for making the entirety of the monthly loan repayment, the rental income that the property can produce helps to determine if the loan can be granted.

To use DSCR Loans to Buy Rental Properties In Georgia:

  • Step 1: Identify a property that can produce good rental rates
  • Step 2: Ensure you have the finances to cover the down payment
  • Step 3: Apply for a DSCR Loan with top rated DSCR Lender

Obviously, there are intricacies involved in each of these key steps, but from a high-level perspective, that is effectively what you need to do.

Frequently Asked Questions

In most cases, DSCR lenders will require a down payment from the real estate investor. Currently, the typical down payment is around [20]%.

If your investment property is expected to generate positive cash flow from the get go, you can try negotiating for a lower down payment. Even though success is not guaranteed, there’s no harm in trying.

Most conventional lenders don’t offer DSCR loans. Instead, they focus on providing residential mortgages for home owners that plan to live in the house that they purchase.

In the end, it all comes down to the amount of risk that a lender is willing to take on. Conventional lenders tend to steer clear of loan products that are considered ‘risky’. This includes DSCR Loans and Fix-and-Flip loans, and it helps to explain why real estate lenders like New Silver exist.

Despite this resistance, real estate investors need capital to purchase investment properties. While traditional banks tend to deny capital requests for real estate investing projects, this creates an opportunity for DSCR Lenders to supply the capital that real estate investors require.

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