DSCR loans evaluate a rental property based primarily on its income and expenses. Underwriting centers on the property’s ability to support the proposed debt service, allowing investors to qualify based on asset performance rather than personal income documentation.
Eligible Property Types:
Property types include 1–4 unit residential rentals and select small multifamily assets where cash flow supports debt service. Properties are evaluated based on income, operating expenses, and overall performance to determine DSCR eligibility.
1–4 Unit Rentals
Small Multifamily
Short-Term Rentals
Portfolio Rentals
Cash-Flow-Based Underwriting
Qualification driven by property performance.
No Personal Income Required
Underwriting is not dependent on W-2 or tax-return income.
Purchase & Refinance
Designed for acquisitions and refinances of rental assets.
Investor-Friendly Structures
Common options include fixed-rate, ARM, and interest-only structures.
Rates and Terms
Discover a wide range of real estate services tailored to meet your needs. From property management to investment advisory, we are here to assist you every step of the way.
1-4 Unit DSCR Loans
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Property Type: Single Family Rentals, 2-4 Unit Properties, Condos, Townhomes
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Loan Amounts: $50,000 – $2,000,000
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Minimum Property Value: $75K
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Loan to Value (LTV): Up to 80% on purchase/refinance, 75% on cash-out
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DSCR Ratio: 1.05x
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Minimum FICO: 680+
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Loan Term Options: 5, 10 or 30-year options
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Prepayment Penalty Options: None, 3/2/1, 3/3/3 or 5/4/3/2/1
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Interest Rate: Starting at 5.75%+
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Eligible Borrowers: U.S. Citizens, Foreign Nationals & Permanent Residents
5+ Unit Multifamily Loans
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Property Type: 5-8 Unit Multifamily
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Loan Amounts: $250,000 – $2,000,000
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Minimum Property Value: $350K
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Loan to Value (LTV): Up to 80% on purchase/refinance, 75% on cash-out
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DSCR Ratio: 1.05x
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Minimum FICO: 680+
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Loan Term Options: 5, 10 or 30-year options
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Prepayment Penalty Options: None, 3/2/1, 3/3/3 or 5/4/3/2/1
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Interest Rate: Starting at 7.5%+
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Eligible Borrowers: U.S. Citizens, Foreign Nationals & Permanent Residents
DSCR Loan FAQs
Q: Why are DSCR rates higher than conventional loans?
DSCR loans offer more flexibility and speed by removing personal income verification. The slightly higher rate (typically 0.75-2% above conventional) reflects this convenience and the asset-based risk model. For many investors, the time saved and ability to scale faster is worth the rate difference.
Q: What if my property doesn't cash flow yet?
Our minimum DSCR is typically 1.05x. For value-add properties or those needing minor repairs, bridge or fix-and-flip loans may be better short-term options before refinancing into a DSCR loan once stabilized.
Q: Can I use projected rent, or do I need a lease in place?
Both work. For occupied properties, we use the actual lease. For vacant properties, we use comparable market rent data from the appraisal.
Q: How do you calculate DSCR?
DSCR = Monthly Rent ÷ Monthly Debt Payment (principal, interest, taxes, insurance, and HOA if applicable).
Example:
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Monthly rent: $2,500
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Monthly mortgage payment (PITI): $2,200
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DSCR = $2,500 ÷ $2,200 = 1.14
What We Look For:
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1.05 or higher = Meets our minimum requirement
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Our minimum: 1.05 DSCR
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Sweet spot: 1.10-1.25 for best terms
Q: What's included in the monthly debt payment?
Principal, interest, property taxes, homeowners insurance, HOA fees (if applicable), and mortgage insurance (if required). We call this PITI.
Q: Do I need reserves?
Yes. Typically 6-12 months of PITI in liquid reserves (cash or equivalent). The exact requirement varies by loan amount, borrower experience, and number of financed properties in your portfolio.
Q: What credit score do I need?
Minimum 680 FICO as stated in our published program guidelines.
Q: What are typical closing costs?
Expect 2-4% of loan amount including: appraisal ($500-800), title/escrow fees, origination/lender fees, and prepaid taxes/insurance. We provide a detailed fee breakdown with every quote. Note: Some lenders charge additional "junk fees" - we keep our fee structure transparent and competitive.
Q: Can I close in an LLC?
Absolutely. We work with single-member and multi-member LLCs, as well as trusts and other entity structures.
Q: What's the maximum number of financed properties?
No limit. DSCR loans don't count against conventional loan limits, making them ideal for portfolio investors.
Q: How long does it take to close?
Our average timeline is 14 days from application to funding.
Q: Do you lend in my state?
We lend in 45+ States nationwide. Contact us to confirm availability in your specific state.
Still have questions? Contact us or call +1 (929) 493-4289 to speak with a DSCR Loan Specialist.
