DSCR Loan Illinois

Last updated: Dec 9, 2024

Why is now the right time to get a DSCR Loan in Illinois?

DSCR loan interest rates are down over 1% since this time last year and continue to be more attractive than bank loans and conventional loans (see DSCR Loans Pros and Cons), is now the right time to use a DSCR loan for your next purchase or refinance? If you're looking for a DSCR loan for your rental property in Illinois, 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.

Rental properties in Illinois tend to generate strong rental income relative to As Is value and are therefore a great fit for financing with a DSCR loan.

How Do DSCR Loans Work in Illinois?

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. The overall process of getting a DSCR Loan in Illinois is approximately as follows. You submit an application for a loan (you can get started on your loan with an instant quote) answering 14 questions about your property. An instant quote will tell you if you qualify for the loan in under 1 minute of your time. It will also show you the a preliminary interest rate and loan amount. Once you select desired LTV (which can be changed later), your quote will be converted to a Loan File for processing purposes.

You will have to submit documents as part of your Loan File for underwriting. Documents we may ask for will include personal and property documents such as purchase contracts, current leases, borrowing entity documents, deeds, title work (we will engage a title company or an attorney on your behalf to draw up these documents), background and credit reports (that we will order), bank statements for liquidity verification as well as other documents that may be applicable to your specific deal. Full list of requirements can be found here in DSCR loan requirements.

We will also handle all the aspects of scheduling and appraisal for you. Please note that we have a promotion, where new clients receive a 100% refund at closing for their appraisal and existing clients forever get a 50% refund for their appraisal at closing as our way to say thank you for allowing us to partner with you! Once all the loan documents are submitted, the Loan File goes through underwriting, at which point the underwriting committee may ask for additional documents depending on their discretion. Once the committee receives all the documents and approves the file, closing can be scheduled.

The closing, will be handled by the title company or at the office of closing attorney. Once closing is complete, funds will be wired. Post closing, the loan will be entered into servicing and you will receive information regarding setting up auto-pay or other options that may be available for your loan depending on the specific servicer's capabilities.

How to get a DSCR Loan in Illinois?

The easiest way to start your Illinois DSCR loan is to click the start button next to "apply for DSCR loan" banners at the top or bottom of this page. OfferMarket's team has expansive experience working with real estate investors across Illinois.

Do you do cash out refi no seasoning for Illinois loans?

We do offer refinance options with no seasoning requirements. Here is the general criteria for cash out refi no seasoning for Illinois loans. Minimum loan amount has to be above $55,000. Minimum As-Is value on the appraisal has to be $100,000. Between 1-4 units. Must have an active lease with proof of security deposit collected. Property condition must be C4 or better. Minimum credit score of 680. Credit score between 680 to 699, gets maximum LTV of 70%, credit score of 700+ gets maximum LTV of 75%. Max LTC, 100% (less than 90 days seasoning), 140% (90 to 179 days seasoning). Minimum verified rehab, 20% of purchase price (less than 90 days seasoning), n/a (90+ days seasoning). Minimum verified rehab, is an improvement that has been done to the unit to verify increase in as-is value in such as short period of time (less then 90 days) to justify the no seasoning period. Origination fee of 1 to 2 points depending on the loan amount to keep the lights on. Lender fee, $1,995 (doesn't go to OfferMarket), includes multiple fees to several different 3rd party verification services, necessary to certify the information in the Loan File for closing. Appraisal at AMC market price, we also have a promotion that new clients get 100% of their appraisal refunded at closing and 50% refund for existing clients. Time to close, 20-25 days.

I know this is a lot of information. You don't have to lift a finger to calculate any of this to see if you qualify, all you have to do is answer 14 simple questions about your deal and we will tell you if we are a good fit for you and what kind of deal we can offer you. To get an answer on your specific situation, please answer 14 simple questions here in our online quoter for Illinois DSCR loans.

You can read more about our cash out refi no seasoning requirements or get started on your Illinois DSCR loan.

Can you lend on properties worth less then $100k?

In short, no, appraisal as is value must come in at above 100k. We can only lend on properties that are less then $100k if they are in a portfolio with other properties and the portfolio's total as-is value on the appraisal is above $250k. In order to qualify for our loans, the property must appraise for at least $100k as-is at the time of the appraisal, however, total loan amount may be less then 100k, minimum loan amount is $55k.

What are the requirements for a DSCR loan in Illinois?

If you scroll up on this page, you will see a simple checklist that details high level requirements for our DSCR loans in Illinois. If you want a more detailed quote for your specific deal, click "start" next to "apply for a DSCR loan" and our online quoting system will produce an accurate quote based on 14 questions related to your deal. Most investors are able to get a complete quote in under a minute because those 14 questions most investors will know answers to. Our most detailed DSCR Loan Requirements can be found here. Once you complete an online quote, you can proceed to your Loan File, where you can peruse the Loan Terms which will detail all the fees and proceeds of the loan in one convenient interface. Get an instant loan quote and Loan File

Otherwise, you can read on to see common guideline breakdowns:

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. We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as not rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural

Full list of requirements can be found here in DSCR loan requirements.

Are you able to lend on rural properties?

We can't lend on rural properties. How can I find out, if my property is rural? Here are more detail on how to verify if your property is rural in our Rural Designation Search Tools. The 2 search tools are hosted by USDA Rural Development Property Eligibility and CFPB Rural and Underserved Areas Checker. Both of the tools must flag the property as none rural for it to be eligible for our funding. Use these instruction to find out if your property is considered rural

Do I need to have my property insured to qualify for funding?

Yes, but if you don't already have insurance, we can roll it into the lending process with no extra charge or effort to you. Our insurance team works with thousands of carriers and is intimately familiar with the insurance requirements of your loan. They will be able to ether talk to the agent of your choice or find the most competitive offer without our network of carriers to complement your loan with no extra effort or expense to you. If you already have insurance, you should get an instant quote to see if we can offer you a more competitive rate and save you thousands of dollars over the lifetime of your policy. Get you instant insurance quote here.

Do you offer DSCR Loan in 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.

What are the fastest growing rental markets in Illinois

Instant off market listing alerts in these areas. Thousands of private sellers and wholesalers have listed their off market properties on our marketplace.

Aurora, IL, economy has been bolstered by its strong manufacturing sector, which includes major employers like Caterpillar, Navistar, Rush Copley Medical Center, Walter Payton College Preparatory High School, Cabot Microelectronics, Alstom Transportation, and Fermilab (Fermi National Accelerator Laboratory) - A major particle physics laboratory operated by the U.S. Department of Energy with a large campus located just outside Aurora. Aurora's location along the Fox River and proximity to Chicago make it an attractive option for companies, contributing to the city's relatively low unemployment rate compared to state and national averages.

Joliet, IL, also has a sprawling industrial base with several anchor employers in the area that serve as a cornerstone of the local real estate market. Amazon operates several massive distribution and fulfillment centers in the Joliet area that employ thousands of workers. Diageo, has a large production facility for this alcoholic beverage company that produces brands like Smirnoff, Johnnie Walker, and Guinness. Amita Health Saint Joseph Medical Center is a major regional hospital and healthcare provider that is located in Joliet. Engineered Glass Products is a manufactures glass components for the automotive industry. Harrah's Joliet Casino & Hotel is a large casino and resort that is a major employer in the hospitality/entertainment sector. Silgan Containers is a produces metal food cans and has a large manufacturing plant in Joliet. Traders Point Christian Academy is a private K-12 school with a large campus. So like Aurora, Joliet has built an economic base around manufacturing, logistics/distribution, healthcare, and hospitality industries taking advantage of its location along major transportation corridors.

Rockford, IL economy has traditionally had a strong manufacturing base, especially in aerospace, automotive, and industrial machinery. It is also a regional hub for healthcare delivery given the large hospital systems headquartered there. Some of the local employers are Mercyhealth, a major regional healthcare system with hospitals, clinics, and a large workforce in Rockford. Woodward, a large aerospace and industrial manufacturing company with operations in Rockford. UTC Aerospace Systems is an aerospace products manufacturer that is one of Rockford's biggest industrial employers. Chrysler Belvidere Assembly Plant is a major automobile manufacturing facility operated by Stellantis. Renaissance Care Centers operates several large senior living and skilled nursing facilities in vicinity of Rockford. Rockford Public Schools is one of the largest employers in the city through its district schools and facilities. Hamilton Sundstrand is an aerospace manufacturer of aircraft systems and components. Diversity of the employment landscape in the area lends to a solid demand for local real estate from industry professionals.

Bloomington, IL. While manufacturing is present, its economy is heavily driven by insurance/financial services, healthcare, and education as major employment sectors. The addition of Rivian's EV plant has also brought new manufacturing jobs. Here are some of the largest employers in the area. State Farm Insurance, which has its corporate headquarters and operations center in Bloomington, employing over 15,000 people. It is by far the city's largest employer. Illinois Wesleyan University, a private liberal arts university with a large campus in Bloomington. Country Financial, an insurance and financial services company headquartered in Bloomington. Afni, Inc. a call center and receivables management company with a large facility. Camoplast Solideal a company that manufactures off-road tires and track systems for vehicles.

Champaign, IL employment scene is primarily driven by education and healthcare sectors with some additional exposure to food manufacturing, technology, and research and development operations that take advantage of proximity to the University of Illinois. Some of the largest area employers are University of Illinois at Urbana-Champaign, a major public research university, UIUC is the largest employer in the area with over 13,000 faculty and staff. Carle Foundation Hospital, a regional healthcare system that operates hospitals, clinics, and has over 7,000 employees based in Urbana. Kraft Heinz Company, a major food processing plant that produces Kraft products and employs over 800 people. Littelfuse a manufacturing facility for this circuit protection products company. Wolfram Research which develops computational software and is headquartered in Champaign. Yahoo Data Center, a large data center operation run by Yahoo/Verizon Media. Champaign Unit 4 Schools, a public school district, one of the area's biggest employers. Amdocs, a software and services provider for communications companies with a development center.

## What are the 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