DSCR Loan georgia
- LTV: 75%
- Term: 30 Year
- Rate: 7.55%
- Points: 1.25%
What are DSCR Loans used for in Georgia?
What are dscr loans used for in Georgia?
DSCR loans are a powerful financing tool for real estate investors in Georgia, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In Georgia, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in Florida’s high-demand vacation markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
DSCR loans are a powerful financing tool for real estate investors in Georgia, allowing them to qualify for loans based on the rental income potential of the property rather than personal income.
These loans use the Debt Service Coverage Ratio (DSCR)—a calculation comparing rental income to property expenses to determine eligibility and loan amounts.
In Georgia, where rental demand is strong, DSCR loans are commonly used to finance long-term rental properties, short-term vacation rentals, and multi-unit buildings.
For those following the BRRRR investing strategy, DSCR loans are ideal for refinancing after stabilizing a property. This strategy allows investors to build a portfolio of rental properties while preserving capital for future projects.
If you're considering investing in Airbnb rentals, DSCR loans can also help finance short-term rentals in Georgia's high-demand vacation markets. Learn more in our guide: Financing Airbnb Rentals with DSCR Loans.
To understand how to calculate DSCR and determine your eligibility, visit the How to Calculate DSCR section of this page.
Georgia DSCR Loan Products
Low Rates, from 1.0% Origination for long term & short term rentals in Georgia.
Long Term Rental
DCSR Loans Georgia
Rates from 6.75%
LTV Up To 80%
From 1.0% Origination Points
Minimum DSCR: 1.0
Closing Time 14 Days
Appraisal Required
Minimum Credit Score: 660
Property Condition C4 Required
Purchase, Refinance, and Cash Out Available
Short Term Rental
DCSR Loans Georgia
Rates from 6.95%
LTV Up To 80%
1-2% Origination Points
Minimum DSCR: 1.0
Closing Time 21 Days
Appraisal Required & AirDNA Check
Minimum Credit Score: 680
Property Condition C4 Required
Purchase, Refinance, Cash Out Available
How To Determine DSCR For Georgia Rental Properties?
The Debt Service Coverage Ratio (DSCR) is calculated by dividing the monthly rent of the property by the monthly loan payment (principal + Interest), taxes, insurance and association fees (PITIA).
DSCR = Rent/PITIA
The basis of a DSCR loan in Georgia, is that the rent you collect from tenants leasing the property should be greater than the cost to own and operate the property.
Investment purpose rental properties with a DSCR greater than 1.0 are called “cash flowing”. You can calculate the DSCR of your rental property with our DSCR Loan Calculator.
(DSCR Evaluation)
Property Value: $474,000
Loan: $379,200
Interest Rate: 7.25%
Ammortization: 30 YR (FRM)
Monthly Rent: $3,995
P&I Payment: $2,586.81
Monthly Taxes: $400.00
Monthly Insurance: $180
Monthly HOA: $0
DSCR 1.26
Georgia DScr Loan process
Ridge Street closes Georgia DSCR loans in 14-21 days.
Apply Or Get Pre-Approved Online
Receive your term sheet
Submit Docs
Appraisal or BPO
Closing
When To Use a DSCR Loan?
DSCR loans are used by investors to "hold" real estate. These loans are long term and amortizing. This allows investors to continuously gain equity in their property while generating monthly cashflow.
Investors either use DSCR loans when purchasing a property or when refinancing it. The BRRRR Investing Strategy is popular among investors in which the DSCR loan is used to "cash out" the property.
Benefits Of DSCR LoanS Compared To Other Loan Types
Other benefits of DSCR loans include:
- No income verification
- Can be used for long term and short term rentals (Financing Airbnb's for example)
- Cost Effective
Best Rental Markets In Georgia For DSCR Loans
Georgia offers a compelling mix of opportunities for real estate investors, fueled by its dynamic economy, growing population, and strong demand for rental properties. From the bustling city of Atlanta to charming suburban and vacation markets, the state presents diverse options for long-term and short-term rental investments. DSCR loans allow investors to maximize their potential by leveraging rental income to secure flexible financing. In this guide, we delve into Georgia's top rental markets and why they stand out for DSCR-funded investments, helping you unlock consistent cash flow and long-term portfolio growth.
Atlanta
Atlanta, Georgia, offers a dynamic rental market fueled by its rapid population growth, strong job market, and diverse economy. The city’s mix of young professionals, families, and college students creates high demand for both long-term rentals and short-term options. With the rise of platforms like Airbnb, investors can tap into the city's tourism-driven rental market while also benefiting from steady cash flow from traditional rentals. Atlanta’s affordable housing and vibrant economy make it an attractive market for DSCR-funded investments, offering great potential for both rental income and portfolio growth.
Savannah
Savannah, Georgia, is a growing rental market with a unique blend of long-term and short-term rental opportunities. The city’s historic charm, scenic beauty, and thriving tourism industry make it a popular destination for both residents and visitors. As a result, there is strong demand for rental properties, especially short-term vacation rentals like those on Airbnb. Investors can take advantage of Savannah’s robust rental income potential, with the option to generate steady cash flow from both traditional and Airbnb rentals. The city's blend of affordability and high tourist traffic makes it an attractive market for DSCR-funded investments.
Augusta
Augusta, Georgia, presents a growing rental market with steady demand driven by its expanding economy and rich cultural heritage. Known for hosting the prestigious Masters Tournament, Augusta attracts both short-term visitors and long-term renters. The city's affordable housing market, along with its stable job base, makes it an appealing choice for investors. With the added opportunity to generate income through short-term rentals during major events like the Masters, Augusta offers a unique blend of traditional and vacation rental opportunities. Its combination of affordability and rental demand makes it a strong market for DSCR-funded investments.
Georgia DSCR Loan FAQ’s
How can I Improve the DSCR of my property?
- Increase Your Down Payment. By Increasing your down payment your loan amount will go down and your DSCR will increase. If you’re struggling to improve your DSCR past 1.0, increasing your down payment is an option you may have to consider.
- Ask Your Lender About A Rate Buy Down. Some lenders, including Ridge Street, allow you to pay an additional fee at closing in exchange for a lower rate. In some cases, a rate buydown will allow you lower your DSCR without increasing your overall cash required to close.
- Push For Less Expensive Insurance. Ask your insurance broker if there is anything they can do to lower your policy fee. A lower insurance policy fee will increase your DSCR.
Could I use a DSCR loan if I have to renovate a property?
You can start by getting a short term fix and flip loan to renovate the property and then refinance the property with a DSCR loan. The strategy of buy, rehab, rent, refinance, and repeating is called The BRRRR Strategy.
Can I use a DSCR loan on a Vacation property?
Absolutely! This is one of the main use cases for a DSCR loan.
What loan amounts can I get for a DSCR loan?
Between $50K and $2M. As long as a the DSCR is greater than 1.0, Ridge Street will lend on it.
Are DSCR loans only for investment properties?
Yes. If you are buying a piece of real estate which you intend to live in, then you would not qualify for a DSCR loan.
For refinances and cash outs, does the property have to be rented?
The short answer is no. We understand that investors who fix and refinance properties intend to refinance as soon as possible after renovating a property.
This said, providing a DSCR loan on a rental property that is not rented is higher risk. We'll want to see that the market you are in is very "rentable" at the market rent for your property. We will not provide a DSCR loan on a rental property that has been listed for rent for 3 months with no bites, for example.
How to Get A DSCR Loan In Georgia with Ridge Street?
Ridge Street is the #1 DSCR Rental Property Lender in Georgia. We pride ourselves on fast closings and fairly priced loans. Get approved for your next project today.