Introduction: Build It, Then Bank On It
Real estate investing isn't limited to buying existing properties. More investors are turning to new construction to build cash-flowing assets from the ground up—whether it's a single-family rental, a duplex, or a build-to-rent community.
But construction financing can be tricky, especially for self-employed investors or those using LLCs. Traditional banks require extensive documentation, personal guarantees, and slow timelines.
DSCR loans for new construction are changing the game. These loans allow investors to fund ground-up builds based on future rental income, not personal W2s or tax returns.
What Is a DSCR Construction Loan?
A DSCR construction loan is a private lending solution that provides capital to build investment properties. Rather than relying on your personal income, the lender qualifies the project based on projected DSCR after completion.
What It Covers:
- Land acquisition (optional)
- Hard and soft construction costs
- Interest-only payments during construction
