Alabama DSCR Loans

Private DSCR Lender in Alabama

CoreVest helps fund DSCR projects for real estate investors with its fix and flip credit line and bridge products. Our approach to efficient underwriting and appraisal service relationships allows us to close deals quicker than our competition. The Alabama DSCR market is booming right now and many fix and flip investors have successfully leveraged their Capital with CoreVest. Whether it’s a complete fixer upper, or you need funds for a quick rehab to get the property purchased, CoreVest Can help you leverage a competitive dscr loan program in Alabama today.

Alabama investment property loans

Alabama DSCR Loan

  • Single rental property

  • Long or short term leases

  • Single-family, 1-4 units, condo, townhome

  • $75k – $2M+

  • Up to 75% of value

  • 30-year term

  • Purchase or refinance

  • Foreign nationals eligible

  • Nationwide lending

How Is an Alabama DSCR Loan Calculated?

Calculating the Debt Service Coverage Ratio (DSCR) involves a straightforward process that requires accurate financial data and a clear understanding of the numerator and denominator components. To ensure precise calculations, follow these step-by-step instructions:

Determine the Numerator:

Identify the net operating income (NOI) of the property or business.

Subtract any non-operating income and add back any non-operating expenses.

Exclude interest and taxes from the NOI.

Determine the Denominator:

Sum up all debt payments within a specific period, typically annually.

Include principal, interest, lease payments, and other relevant obligations.

Calculate DSCR:

Divide the numerator (NOI) by the denominator (debt payments).

The resulting value represents the DSCR.

Your Alabama DSCR Loan Calculation Example

To illustrate how DSCR is calculated, let’s consider an example of a borrower applying for a real estate loan from a bank:


Property value: $500,000

Loan amount requested: $400,000

Annual net operating income (NOI): $60,000

Annual loan payment: $30,000

DSCR Calculation:

Determine Net Operating Income (NOI): In this case, it is $60,000 per year.

Calculate Debt Service Payment (DSP): This represents the annual loan payment of $30,000.

Apply DSCR formula: Divide NOI by DSP ($60,000 / $30,000), resulting in a DSCR of 2.

In this example, the borrower has a DSCR of 2. A DSCR greater than 1 indicates that the property generates sufficient cash flow to cover its debt obligations.

Alabama DCSR Loan Rates from CoreVest Finance

Types of Properties Single-family, 1-4 units, condo, townhome
Loan Amount $75k – $2M+
LTV Up to 75% of value
DCSR Interest Rates Varies
Minimum Qualifications / Documentation Credit score: at least 680, Borrower must be a business entity, Call for more details
Other Financing Available Rental Portfolio Loan, Single Asset Rental Loan, Bridge Loans, Fix and Flip Credit Line, Rental Aggregation Line, Single Asset Bridge Loan

*Exceptions may be granted due to borrower history and experience with DCSR loans. Call for details.

Apply for a Alabama DSCR Loan

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