Why Now Is the Perfect Time to Invest in Real Estate with DSCR Loans

With over 20 years as a realtor and investor, I’ve navigated every type of market—buyer’s, seller’s, and everything in between. My name is Stacy Ann Stephens, and I’m here to tell you that it’s always the right time to invest in real estate, as long as the numbers make sense. Whether you’re a seasoned buy-and-hold investor or a self-employed professional hesitant to dip your toes into the investment world, there’s one tool that’s been a game-changer for real estate investors: DSCR loans.

DSCR (Debt Service Coverage Ratio) loans are a powerful option for investors, offering flexibility and opportunity in any market. As a mortgage broker with Jhenesis Mortgage, I’ve seen firsthand how these loans empower both new and experienced investors to seize real estate opportunities. Here’s why DSCR loans are a must-consider for anyone looking to build wealth through real estate—and why now is the time to act.

The Power of DSCR Loans for Real Estate Investors

DSCR loans are designed specifically for investors, focusing on the income potential of the property rather than your personal income. This makes them ideal for self-employed individuals, realtors, and anyone looking to grow their real estate portfolio. Below, I’ll share four key reasons why I love DSCR loans—and why you will too.

1. Income Based on Property Potential, Not Your Paycheck

One of the biggest advantages of DSCR loans is that they use the property’s current or market rent to determine income, not your personal earnings. As an investor, my strategy is to make money at the purchase—buying properties below market value or with strong potential for added value (ARV). When I secure a deal with built-in equity, any rental income is just icing on the cake.

With a DSCR loan, the rental income needs to cover all property expenses, including the mortgage, taxes, insurance, and maintenance. This gives lenders confidence in the deal and provides me with peace of mind knowing the property is cash-flow positive. For example, buying a property below market value and having the rent cover all expenses creates a win-win scenario that sets you up for long-term success.

2. Skin in the Game Builds Financial Discipline

While I love leveraging other people’s money to grow my portfolio, DSCR loans typically require a 20-30% down payment. This “skin in the game” is a feature I appreciate because it ensures I’m not over-leveraged. If the market shifts, having significant equity in the property acts as a buffer, protecting my investment.

This requirement also serves as a self-imposed boundary, encouraging disciplined investing. It forces me to focus on deals that make sense financially, avoiding the temptation to overextend. For new investors, this structure provides a safety net while building confidence in their real estate journey.

3. Market Shifts Are Your Opportunity

Whether the market is hot or slow, DSCR loans position investors to thrive. In a slower housing market, like we’re experiencing now, opportunities abound. Working with an experienced investor-realtor like myself, you can negotiate respectful low-ball offers and find sellers willing to make a deal. As an investor, my focus is simple: secure a property at a great price, ensure the rent covers all expenses, and don’t sweat higher interest rates. DSCR loans make this possible by prioritizing rental income over market fluctuations.

In a low-rate, high-price environment, DSCR loans shine just as brightly. Lower interest rates mean lower monthly expenses, making it easier for rental income to cover costs. Even though DSCR loan rates typically run 1.5-2% above conventional rates, the math still works as long as the rent pays the bills. No matter the market, DSCR loans give you the flexibility to capitalize on opportunities.

4. Stability with 30-Year Fixed Terms

Most DSCR loans are 30-year fixed-rate loans, offering the stability and predictability investors crave. Unlike the shady hard money lenders of the past, DSCR loans are often serviced by reputable companies or major banks, with familiar terms like escrow and regular payments. This structure feels like a traditional mortgage (minus the owner-occupancy requirement), providing peace of mind and a sense of normalcy.

While DSCR loans are non-QM (non-qualified mortgage) products, meaning they don’t follow conventional lending rules, they still offer a variety of loan options. However, the 30-year fixed term is a favorite for buy-and-hold investors like me, ensuring consistent payments over the long haul.

Why Self-Employed Investors Should Act Now

If you’re self-employed—especially if you’re a realtor—don’t let another market shift pass you by. Real estate is one of the most reliable ways to build wealth, and DSCR loans make it accessible for investors at any stage. Whether you’re looking to buy your first investment property or expand your portfolio, the current market offers incredible opportunities to secure deals.

At Jhenesis Mortgage, we specialize in helping investors like you take advantage of DSCR loans. Our team of real estate investment consultants is ready to guide you through the process, from finding the right property to securing financing that fits your goals.

Take the Next Step Today

Real estate investing is about seizing the moment, and there’s no better time than now. With DSCR loans, you can build wealth, create passive income, and navigate any market with confidence. Don’t wait for the “perfect” time—it’s already here.

Ready to get started? Schedule an appointment with one of our real estate investment consultants at Jhenesis Mortgage today. Let’s turn your investment dreams into reality.

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