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West Forest Capital

Jersey City DSCR Loans

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If you you’re looking for a DSCR rental loan in Jersey City, we have you covered.

West Forest Capital is a leading Jersey City DSCR rental loan provider, financing real estate investments up to $3 million.

What is a DSCR Rental Loan?

  • A DSCR (Debt Service Coverage Ratio) rental loan is long term real estate financing – often up to 30 years
  • Personal income and personal credit are not significant factors in the underwriting
  • The loan is based off the property value, and the income it generates
  • Fast closing, can be done within 2-3 weeks

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(Investment Properties Only)

Property Types

Lending Parameters

Loan Size$100,000 - $3,000,000
Loan to ValueUp to 80%
Primary ResidenceNot accepted
Rental statusRented preferred but not required (can use market rents)
TermUp to 30 years
FormatFixed or Variable available
RateVaries by product, correlation with Treasury Rates
PointsTypically 2%

Counties Covered

We provide DSCR rental loans in the following counties in Jersey City:

  • Hudson County
  • Bergen County
  • Passaic County
  • Essex County
  • Morris County
  • Sussex County
  • Warren County
  • Union County
  • Somerset County
  • Middlesex County
  • Hunterdon County
  • Mercer County
  • Monmouth County
  • Burlington County
  • Ocean County
  • Atlantic County
  • Cape May County

Recently Funded Bridge Loans

Why Use a Jersey City DSCR Rental Loan

  1. If you own your own business. Business owners have many expenses and unpredictable income.  Your business might have significant income, but you personally might not.  Since a DSCR loan does not require personal income, it’s ideal for business owners.
  2. If you have imperfect credit. To qualify for a DSCR rental loan, the underlying customer metrics, such as FICO score, are less important than the actual asset – your rental property.  Typically, if your FICO is in the mid-600s or above, we can work with you.
  3. Fast approval process. DSCR rental loans have a much faster approval process (2-3 weeks) than traditional loans, allowing investors to secure financing quickly and take advantage of investment opportunities as they arise.
  4. Flexible Repayment Terms. DSCR rental loans come with flexible repayment terms. This can be especially beneficial for investors who have multiple rental properties and need to manage their cash flow effectively.  Examples of options are 30 year fixed rate or a 5/1 ARM (which simply means the rate is fixed for 5 years and then resets every year going forward; there are also 7/1 ARMs, and so on).
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Why Choose a Jersey City DSCR Rental Loan

Investing in Jersey City real estate affords the long-term benefits of real estate investments: collecting rents, upside of price appreciation over time, and the tax advantages of real estate depreciation. Unless you are a cash buyer, obtaining smart financing will be the key to your success. Outside financing will allow you to control a much large portfolio and exponentially increase your returns. A very convenient way to obtain financing for a rental property is by using a DSCR rental loan.

Jersey City’s DSCR rental loans provide a practical approach to property financing without the overwhelming complexities of traditional bank loans. We simplify the process and lock in long-term financing for up to 30 years at favorable rates. This extended duration sets us apart from conventional banks, which typically offer their best rates for shorter-term loans of 5 to 10 years.

Jersey City has seen a tremendous amount of improvement over the last decade, and offers a dynamic and robust vibe to its residents. Journal Square has become not just an ideal commuter’s location, but a desirable destination itself. Bergen-Lafayette has experienced extensive investment by real estate investors, with particularly strong commercial activity around Communipaw Avenue. As another example, the West Side of Jersey City has seen substantially increased rents due to demand from renters. By strategically investing in these areas, you can achieve consistent returns on rental income and take advantage of property valuations. Our DSCR rental loans aim to help you navigate the market. Our approach allows for attractive loan terms while minimizing unnecessary risks.

Jersey City has a growing economy and population, and the lack of new housing has spiked demand. The city attracts a mix of locals, commuting professionals, and students. This diverse mix of residents ensures a stable renter base that is not overly reliant on one industry. Accordingly, our DSCR rental loans will take into account the rental value stability and low vacancy rate, which will allow for the highest LTV and lowest loan pricing available.

Getting a DSCR Rental Loan in Jersey City

Securing a DSCR Rental Loan in Jersey City is straightforward and much easier than dealing with a bank, and the associated red tape. We evaluate the property (the value, the rent collections, and the expenses). After that, we simply ensure that the property can support our loan. That’s it. Our goal is to simplify the process, ensuring you have access to the funds you need without unnecessary hassles. The loan approval period is typically two to three weeks — a smooth and predictable experience.

Asset Based Lender Providing DSCR Rental Loans in Jersey City

As a specialized asset-based lender, we are laser focused on providing you the best available loans for your real estate investments which are based on the property itself, and not external factors like your outside income or credit score. So long as your rents minus expenses are able to cover debt service, and your credit is over 650, we will be able to provide attractive financing. We aim to be your reliable partner in helping you grow your rental property portfolio.

Our DSCR rental loan program for Jersey City is tailored to support your investment properties, allowing you to build a strong asset foundation for long-term success.

Reach out and let us help you today. We’ll explain all the details and provide you a reliable loan offer in a no pressure setting.


Also known as a Debt Service Coverage Ratio loan, a DSCR loan is a type of real estate mortage loan that can be used to purchase or refinance a property. They differ from a traditional mortgage loans in two primary ways:

They are intended for investment properties only and they are based on the value and rental income potential of the property rather than the income of the borrower.

You are typically eligible for a DSCR loan if the below conditions are met:

  • The property is a condo, single-family residence, a duplex, triplex, quadplex, or multi-family
  • Investment property, cannot be primary residence
  • The property does not require rehab
  • The property is an LLC rather than a personal name (can be transferred to an LLC upon closing)
  • Insurance and taxes are up to date

Since DSCR loans are primarily lent on the asset rather than the borrower’s credit or income, FICO requirements are limited.  Typically, a score above 660 will work.

Additionally, since the property must be able to be able to produce income, vacant land, or primary residences are not permitted.

The minimum DSCR ratio requirement is typically 1.1x. DSCR ratios are calculated by dividing the Net Operating Income (NOI) by the Property Debt Service. The NOI is equal to the total rent minus taxes and insurance, while the Debt Service is equal to the mortage payment (principal plus interest).

DSCR loans make it possible for borrowers with non-W2 income and other non-traditional income sources to receive a loan to purchase real estate since they are based on the value of the property and the property’s ability to generate rental income and cashflow. As mentioned, these types of loans are not based on personal income, making the borrower’s income irrelevant.

There are several benefits which make DSCR loans superior to bank loans or other real estate financing products.  First, DSCR loans make it possible for borrowers with non-traditional forms of income to obtain a mortgage. Second, even if you can satisfy a bank’s requirements for income, DSCR loans allow borrowers with credit issues to secure a mortgage.  Finally, DSCR loans are simply much faster to get – they can be approved within as little as two weeks, a significantly shorter amount of time than a traditional mortgage loan.

The most common misconception about DSCR loans is that borrowers assume the qualification terms are the same for these types of loans as they are for traditional mortgage loans. But this is incorrect. Unlike mortgage loans, DSCR loans do not have any income requirements, and much fewer credit requirements. This makes it more likely for borrowers to receive funding for real estate properties that they otherwise would not qualify for.

One potential drawback to a DSCR loan can be the down payment requirement upon purchase, which can sometimes be close to 20 or 25% of the purchase price. A second drawback is that the mortgage rates tend to be a bit higher than traditional mortgage loans.  And finally, unlike traditional mortgage loans, DSCR loans are usually provided by smaller lending companies, so it’s important to understand the loan and be comfortable with the company providing it.

A lender evaluates the borrower’s ability to repay a DSCR loan based on the property’s DSCR ratio. As mentioned earlier, this metric takes into account the property’s NOI (Net Operating Income) and the total debt service.

The NOI is the income amount expected to be generated by a property after all operating expenses have been deducted (utilities, maintenance on the property, management fees, etc.).

The total debt service includes both the principal amount and interest payments due on the loan.

When both are taken into consideration, the ratio often needs to be at least 1.1x to show lenders that the borrower will have enough cash flow coming from the property to make the mortgage payments on the loan.

Borrowers can improve their chances of getting approved for a DSCR loan by having cash on hand to cover the down payment amount in the event of a purchase (which can be close to 20-25% of the purchase price).  (It’s worthwhile to note that borrowers don’t need to come up with a down payment when refinancing into a DSCR loan).  They also can improve their chances of being approved by having the property held in an LLC, rather than in the borrower’s name. The type of property and its use will matter as well – investment properties such as condos, single-family residences, multi-family homes, and some commercial properties will likely be easier to approve than land, primary residences, or properties for industrial use.

Borrowers can use a DSCR loan to expand their business by purchasing their first rental property and additional rental properties thereafter.   In fact, when using DSCR loans, there is no limit on the number of properties that can be acquired, so long as each property is able to produce cash flow with an acceptable DSCR ratio (typically 1.1x or more).  Before applying for a loan, borrowers should have enough cash to cover the down payment on the property.  They should also evaluate the costs associated with each rental purchase, including utility fees, any potential HOA costs, management fees, and maintenance expenses.   These costs, plus the mortgage payment should be compared against the actual or potential rents to make sure there is sufficient coverage.  In the event of refinancing, a DSCR loan can also be used.  In this case, the borrower should make sure that the maximum loan amount can be covered by the same calculation.

West Forest Capital is the fastest DSCR Loans Lender in Jersey City

Jersey City DSCR Loans Loan Lender

We fund DSCR Loans in 2-3 weeks.
Commercial and industrial loans are funded in two weeks.

If you are looking for a Jersey City DSCR Loans Lender, give us a call.

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A Jersey City direct lender you can rely on

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