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What are common interest rates for DSCR loans?
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What are common interest rates for DSCR loans?
Lending rates for DSCR loans are slightly higher than those of conventional loans due to qualification based on a business’s cash flow, and not its income from employment or other personal revenue sources. Interest rates can vary from 6% and up to 10%, based on such a loan provider, LTV, DSCR and borrower credit score. Where the DSCR is high, the rates may be better, especially where the properties are well positioned to generate solid cash flow. Consumers should use comparison tools and examine the possibility of the fixed rates to hedge for raising interest from the borrowers.
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