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West Forest Capital

New Jersey DSCR Loans

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

West Forest Capital is a leading New Jersey 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 New Jersey:

  • Atlantic
  • Bergen
  • Burlington
  • Camden
  • Cape May
  • Cumberland
  • Essex
  • Gloucester
  • Hudson
  • Hunterdon
  • Mercer
  • Middlesex
  • Monmouth
  • Morris
  • Ocean
  • Passaic
  • Salem
  • Somerset
  • Sussex
  • Union
  • Warren

Recently Funded Bridge Loans

Why Use a New Jersey 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).
Rental loan apartment
Rental Loan
Fast rental loans Florida - finance house

Why Choose a New Jersey DSCR Rental Loan

Investing in rental properties in the state of New Jersey presents an excellent opportunity to attain the long-term advantages of real estate investments: growing rents, historically strong appreciation, and depreciation of real estate for accounting purposes. For real estate investors, securing financing stands as a pivotal step in acquiring and managing a lucrative rental property portfolio. However, the search for the right loan can be difficult and confusing, particularly when seeking a loan primarily based on property value and investment quality rather than personal FICO score or personal income.

DSCR rental loans in New Jersey offer a viable avenue for property financing without the painstaking document requests and stringent requirements commonly associated with traditional bank loans. Besides being way faster to obtain, DSCR rental loans also allow investors to lock-in long term financing up to 30 years at attractive rates.  This type of duration is often not easily offered by banks, which offer their best rate terms on shorter duration loans, typically ranging from 5 to 10 years.

New Jersey offers attractive real estate opportunities in each part of the state. Urban centers like Jersey City, Newark, Paterson and Elizabeth accommodate a busy lifestyle with an ever growing corporate base.  As companies continue to move, and employees follow, demand for housing is at an all-time high. Other areas such as Harrison, Union City, Cherry Hill, Montclair, and Livingston offer elegant suburban living with convenient access to nearby larger cities.  Renters, particularly those in search of single-family homes, often gravitate towards these cities, fueling a robust demand for rental properties.  Consequently, New Jersey real estate investors can realize tremendous gains both in rental income and property valuations.

New Jersey’s economy is strong and growing at a rapid rate; in fact, the unemployment rate is one of the lowest in the country.  The population has been growing steadily – people are permanently moving, working, and enjoying their time in New Jersey. This population trend paves the way for higher rental income with considerable upside, which fits perfectly with the requirements of a DSCR loan.

Rental Loan

Getting a DSCR Rental Loan in New Jersey

Simply put, a DSCR Rental Loan in New Jersey is much easier to quality for than a traditional bank loan. Conventional financial often impose stringent criteria for real estate loans, and these restrictions have grown even more rigid in recent times. This rings particularly true if you possess a less-than-ideal credit history or have a diverse real estate portfolio.  While a bank will do a full underwrite of personal income, and personal credit score.

However, New Jersey real estate investors who opt for DSCR rental loans can find solace in the fact that this loan type allows lenders to evaluate each property individually, thereby minimizing the impact of personal credit history or the number of properties owned on loan approval. Another notable advantage lies in the swiftness of loan approval, as DSCR loans in New Jersey can often be funded within a short timeframe of merely two weeks.

Asset Based rental loan Lender

Asset Based Lender Providing DSCR Rental Loans in New Jersey

As an asset-based lender specializing in rental loans within the state of New Jersey, we concentrate on expeditiously providing loans based on real estate assets generating net operating income (NOI) surpassing the property’s debt service. We comprehend that real estate investors frequently embody an entrepreneurial spirit and may not possess a consistent monthly income. Additionally, who desires to endure a lengthy wait and furnish copious amounts of documentation pertaining to income and bank statements? Whether you aspire to acquire your initial rental property or expand an existing portfolio, our unwavering support remains at your disposal throughout the entire process.

Do you need a partner with us on this journey? Let’s go! contact us today to delve into the depths of the DSCR rental loan program tailored for your investment property in New Jersey.


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 New Jersey

New Jersey 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 New Jersey DSCR Loans Lender, give us a call.

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