Overview
DSCR
DSCR (Debt Service Coverage Ratio) loans are innovative financing solutions designed for real estate investors who want to qualify based on the property's rental income potential rather than personal income verification.
These loans are perfect for investors building rental property portfolios, as they focus on the property's ability to generate sufficient cash flow to cover the mortgage payments.
Unlike traditional mortgages that require extensive personal income documentation, DSCR loans streamline the qualification process by analyzing the property's rental income against the proposed mortgage payment. This makes them ideal for self-employed investors, those with complex tax situations, or anyone looking to expand their investment portfolio without the constraints of traditional income verification.
Key Benefit
- No personal income verification required
- Qualify based on property cash flow potential
- Perfect for self-employed investors
- Portfolio lending options available
- Competitive interest rates
- Loan amounts up to $50 million
- Terms up to 30 years available
- Cash-out refinancing options
- Multiple property financing
- Streamlined application process
Requirements
- Minimum credit score of 575
- Property must have positive cash flow (DSCR ≥ 1.0)
- Down payment of 20-25% minimum
- Property appraisal and rent roll analysis
- Landlord experience preferred but not required
- Property insurance and reserves required
- Single-family to 50-unit properties eligible
- Investment property only (no owner-occupied)
Do You Have A Scenerio?
FREQUENTLY ASK QUESTIONS
We’re Ready to Answer Your Questions
Here are answers to some common questions our clients always ask:
We typically require a minimum DSCR of 1.0, meaning the property’s rental income covers the mortgage payment. However, ratios of 1.2 or higher often qualify for better rates and terms.
Yes, we can use market rent analysis and comparable properties to determine the rental income potential for vacant or renovation-required properties.
While landlord experience is preferred, it’s not strictly required. First-time investors can qualify with strong credit and adequate reserves.
Single-family homes, condos, townhomes, and 2-4 unit properties are eligible. The property must be used as an investment rental, not as a primary residence.
Our DSCR loan approval process typically takes 21-30 days from complete application to closing, depending on property complexity and appraisal timing.
