Alabama DSCR Loans
EasyRent is our tailored and industry-leading DSCR Loan solution for Alabama real estate investors. Whether you are acquiring property to expand your portfolio or cashing out your capital in a refinance, we have a loan for you. Our DSCR Lending Program has solutions for anyone – from first-time investors to industry veterans looking to rapidly scale their portfolios. We are confident we can find you a great Alabama DSCR loan in a quick, efficient and easy process. Click the button below and get started today!
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What is a DSCR Loan?
A DSCR Loan is a mortgage loan for a residential income-producing property. It is primarily based on the “Debt Service Coverage Ratio” or the cash flow of the property, rather than the borrower’s income. A traditional mortgage loan will require income verification, tax returns and a “Debt-to-Income” (DTI) ratio. DSCR Loans require none of these! Perfect for real estate investors ready to scale (no more W2!) or are looking leave behind the hassle, paperwork and headaches of conventional financing, DSCR Loans are quickly becoming the go-to loan option for real estate investors.
For a comprehensive definition, “DSCR Loans are mortgage loans secured by residential real estate turnkey properties strictly used for a business purpose and underwritten primarily based on the property.”
DSCR Loan Definition Breakdown
- Mortgage Loans = form of loan that is secured by collateral, collateral = real estate
- Residential Real Estate = properties used for people to live in vs. commercial, which is used to operate businesses (offices, retail, industrial, hotel, self-storage, etc.). In real estate finance, residential also typically refers to “1-4 unit” properties, anything more would be considered “multifamily”
- Business Purpose = DSCR loans strictly do not allow the owner of the property to live in the property, it must be used for “business” or investment purposes. Includes use of “cash-out proceeds”
- Underwritten = How lender evaluates (and then prices) the risk of the loan
- Primarily Based on Property = Mostly based on property, but also look at sponsor
- Turnkey = property doesn’t require any renovation, “turn the key and go”
Looking to get a deeper understanding of all things DSCR? Check out our DSCR Loans Guide below!
Alabama Recent DSCR Fundings
Real Investments. Real Results.
Real estate investors in the Yellowhammer State are turning to DSCR Loans as a strategic tool to expand and manage their investment property portfolios. DSCR loans allow investors to secure financing based on the property's ability to generate income (rather than an investor's individual credit profile). In a market like Alabama, where real estate prices have shown steady growth and rental demand remains steady, DSCR loans offer investors a flexible and effective means to acquire new properties, improve existing ones, or refinance their assets. Easy Street Capital is proud to be a leading provider of DSCR loans for Alabama real estate investors looking to build rental portfolios! Check out our most recently funded DSCR loans in Alabama below:
Triplex
Alexander City, AL
$215,800 Alabama DSCR Rental Loan for a Cash-Out Refinance of a rental property in Alexander City. This triplex features extensive updates, including a new roof, remodeled kitchens and bathrooms, and fresh flooring throughout. Located less than a mile from downtown Alexander City, it offers easy access to local shops, restaurants, and services.
Single-Family Residence
Birmingham, AL
$134,400 Alabama DSCR Rental Loan for a Cash-Out Refinance of a rental property in Birmingham. Renovations to this property include fresh paint, enhanced landscaping, new drywall and flooring, upgraded kitchen finishes, and renovated bathrooms. The residence is currently occupied on a long-term lease.
Single-Family Residence
Jasper, AL
$161,000 Alabama DSCR Rental Loan for a Cash-Out Refinance of a rental property in Jasper. Known for its small-town atmosphere, Jasper has a charming downtown area with historical buildings and local shops as well as beautiful landscapes, including the Bankhead National Forest and Lewis Smith Lake.
Duplex
Tuscaloosa, AL
$112,500 Alabama DSCR Rental Loan for a Cash-Out Refinance of a rental property in Tuscaloosa. The property is fully occupied on long-term leases and is located only a few minutes away from the center of Tuscaloosa, allowing easy access to the city’s conveniences while enjoying the calmness of the suburbs.
Single-Family Residence
Cordova, AL
$79,500 Alabama DSCR Rental Loan for a Rate-Term Refinance of a rental property in Cordova. With newly renovated kitchen and bathrooms, this property is in good condition.
Duplex
Montgomery, AL
$75,000 Alabama DSCR Rental Loan for an Acquisition of a rental property in Montgomery. Featuring two units of varying size, this duplex was built in 1925 and has an effective age of 30 years due to its adequate maintenance. The property will be utilized as a long-term rental upon acquisition.
Duplex
Tuscaloosa, AL
$132,000 Alabama DSCR Rental Loan for a Cash-Out Refinance of a rental property in Tuscaloosa. In the heart of Tuscaloosa, The University of Alabama, attracts students nationwide making this a hotspot for savvy investors.
Single-Family Residence
Huntsville, AL
$143,500 Alabama DSCR Rental Loan for an Acquisition of a rental property in Huntsville. This contemporarily designed property showcases new luxury vinyl tile flooring, along with a new roof, vinyl windows, and water heater. Not to mention the sleek updated bathrooms with black finishes and a remodeled kitchen with stainless steel appliances, granite cabinets, and a subway tile backsplash. The backyard is also large enough to add a pool, for now, the porch on the side of the house offers great shade to escape the Alabama heat.
Cash-Out Refinance
Equality, AL
Experienced real estate investors cash-out on their waterfront Lake Martin property, proceeds will be used to acquire additional properties.
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