DSCR Loans Illinois
So you're looking for a DSCR loan for your rental property in Illinois? Whether it's an upcoming purchase or refinance, you are in capable hands with OfferMarket!
The goal of this article is to answer frequently asked questions from our Illinois clients about DSCR loans, and provide you with the most competitive DSCR loan terms so you can grow your rental property portfolio as profitably as possible.
What is a DSCR loan?
A DSCR loan is a mortgage specifically for your Illinois rental property. The most common DSCR loan is a 30 year fixed rate mortgage, though there are adjustable rate and interest only options available.
DSCR Loan Guidelines
Credit Score
In most cases, a 720 credit score will qualify you for the lowest interest rate and highest loan amount. We recommend protecting your credit score and striving for a 740+ score to make sure you get the best terms.
No Seasoning
Most DSCR lenders require 6 months of seasoning. At OfferMarket, we have a no seasoning program for qualified borrowers. We also offer 90 day (3 month) seasoning for borrowers with 700+ credit score or 5+ rental experience.
Rural Properties
Rural properties are not a good fit for DSCR loan programs. If your property is considered rural in any of the following ways, it may not be eligible:
- Rural designation by Federal Government (CFPB, USDA)
- Rural designation by appraiser
- Population under 10,000
- 5+ miles from a 100,000+ population center
Rural designation is a gray area so we recommend proceeding with caution on any purchase where the subject property checks one or more of the above bullets.
| Guidelines | Criteria |
|---|---|
| Max Loan Amount: Purchase | 80% of purchase price (20% down payment) |
| Max LTV: Refi | 75% cash out, 80% rate and term |
| Min credit Score | 660 |
| Min seasoning | No seasoning or 3 months depending on experience, loan amount |
| Appraisal | On-site (As Is 1004/1007 for single family, As Is 1025 for 2-4 units) |
| Credit report | Tri merge |
| Property location | Non-rural |
DSCR Loan Chicago
Chicago can be a great market to own rental properties. We are actively funding rental property investors in Chicagoland, and we would love to be your lender. Here are some things to know about Chicago DSCR Loans:
- avoid properties on blocks with a high number of board-ups, or board-ups that are next door
- be advised that DSCR loans for 5+ unit multifamily properties cary lower leverage, higher rates and the capital markets are not as healthy as 1 - 4 unit properties. OfferMarket specializes in 1 - 4 unit residential DSCR loans.
- Chicago has higher taxes which reduce DSCR and max loan amount. Use our DSCR Calculator to better understand your expected loan amount, cash flow, cash to close or cash out.
Fastest growing rental markets in Illinois
| City | Population | Population Growth Rate | Median Home Price | Market Rent |
|---|---|---|---|---|
| Aurora | 211,224 | 3.1% | $250,000 | $1,300 |
| Joliet | 102,419 | 2.9% | $200,000 | $1,200 |
| Rockford | 2.8% | $175,000 | $1,100 | |
| Bloomington | 85,124 | 2.7% | $225,000 | $1,250 |
| Champaign | 88,866 | 2.6% | $235,000 | $1,300 |
Best DSCR Lender Illinois
There are many DSCR lenders in Illinois and you have many options to get your loan funded. As fellow rental property investors, we built OfferMarket to be a low cost DSCR lender. We believe you should never have to wonder if you're getting the best possible terms from your lender. You should never need to waste time negotiating. That's why we provide you with our best possible term sheet every single time -- you get our lowest rate and lowest fees.
Your first loan with OfferMarket is the start of a long term relationship. It's our opportunity to provide you with remarkable value and prove that we deserve to be your partner on your real estate investing journey. We feel a sense of obligation to prove we deserve your business on each and every loan.
How to get started with your DSCR loan
⚡ get your instant DSCR loan quote -- takes less than a minute, be sure to submit so we can confirm the best possible terms (our instant quote is conservative and we commonly can actually provide a lower rate and higher loan amount)
📄 upload your purchase agreement or lease in your online Loan File
🧑💻 schedule your relationship manager call from your online Loan File
