Debt Service Coverage Ratio (DSCR) loan is a type of commercial loan that is based on the borrower's capacity to repayment of the loan.
The requirements for a DSCR loan in Louisiana are as follows.
- Proof of steady income.
- Good credit score.
- Well-established business.
- Financial statements.
To calculate the DSCR in Louisiana, your or your property's income is divided by the loan amount payments. If this ratio is more than 1.25 then you can apply for DSCR loan.
The interest rate for DSCR loans in Louisiana is not fixed. It depends on many things, first of all, if your lender provides you loan at more or less interest rate, then it is his personal matter. Secondly, your loan amount, your loan tenure, your credit score, there are many such factors which affect the interest rate of DSCR loan.
So you have to contact your lender to know the real interest rate. But the average interest rate for DSCR loans in Louisiana ranges from 5% to 15%.
Yes, you can use a DSCR loan to refinance your existing debt in Louisiana,
Yes dscr loan is available in Louisiana?
The average DSCR for bank loan in Louisiana is 1.25 or more.
The maximum loan amount for DSCR in Louisiana are not fix. You can apply any loan amount related to your property of business .
Full form of DSCR loan is debt service coverage ratio loan. It is a loan that reflects one's loan repayment capacity.