What are the disadvantages of DSCR?

What are the disadvantages of DSCR?

Hello Beau, everybody is talking about DSCR loans. Can you tell me what the disadvantages are with DSCR loans?

Jim

Timestamps
[00:13] The disadvantages of a DSCR loan
[00:34] The advantages of a DSCR loan far outweigh the disadvantages
[00:40] Some people consider a conventional loan if they have the bandwidth to do so
[00:50] No issues with DTI, not minding about buying the property and owning it in their name
[00:59] Not owning the property in the business entity

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In this video, Beau discusses the disadvantages of DSCR loans. He notes that conventional financing is typically cheaper, and that DSCR loans may have prepayment and declining payment penalties. Interest rates and costs may also be slightly higher for DSCR loans compared to conventional financing.

Despite these drawbacks, Beau suggests that the advantages of DSCR loans outweigh the disadvantages, but notes that conventional financing may be more appropriate for some individuals who have no issues with DTI and do not mind having the mortgage on their personal credit reports.

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💥 Thanks for watching 💥
#dscrloans #dscr #sbaloan

About Beau: Beau Eckstein is a real estate entrepreneur, TV personality, and commercial mortgage advisor, specializing in construction financing and multi-family lending.

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