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DSCR Loans
Debt Service Coverage Ratio loans, or DSCR for short, allow real estate investors to purchase investment property qualifying solely on the subject property's cash flow. DSCR loans are ideal for investors that may not qualify using traditional documentation such as pay stubs, w-2s or tax returns. DSCR loans are also great for investors that have exceeded the conforming limit of 10 financed properties.
You can be Pre Approved by the end of the day!
Finance 80% of the home's sales price/appraised value
Credit scores of 640+ required
30 Year Fixed terms are available
No limit on the number of properties financed
Popular DSCR Loan Topics
Mortgage Rates for DSCR Loans
Your mortgage rate is an important factor in your overall home payment and family budget. Our company is built to offer lower mortgage rates which will help make your home more affordable.
On average, our mortgage rates are .326% lower than the national average. This equates to $23,836 in life of loan interest savings. See details on rate savings calculation here.
Program Highlights
Fixed or Adjustable Rates
Investment Property only
No Pre Payment Penalty Options Available
No limit on number of properties financed
640 minimum credit score
20% down payment is required
Frequently Asked Questions
DSCR loans are ideal for investors that may not qualify using traditional documentation such as pay stubs, w-2s or tax returns. DSCR loans are also great for investors that have exceeded the conforming limit of 10 financed properties.
Who are DSCR loans best for?
You will need at least a 20% down payment for a DSCR loan.
How much down payment do I need for a DSCR loan?
Yes, you can purchase your first investment property using a DSCR loan as long as the proposed rent exceeds the mortgage payment.
Can a first time investor use a DSCR loan?
Any investment property will have higher interest rates than loans for primary residences. DSCR loans are a bit higher than normal investment property loans due to their limited documentation requirements. However, high credit scores and increased down payment can improve your DSCR interest rate.
How are the rates for DSCR loans?
DSCR Loans
Overview
Debt Service Coverage Ratio (DSCR) loans are designed specifically for real estate investors who want to qualify based on the cash flow of the property—not their personal income. Instead of tax returns or pay stubs, DSCR loans use the property's rental income to determine eligibility. This makes them a great option for self-employed borrowers, seasoned investors, or anyone looking to expand their real estate portfolio without traditional income verification hurdles.
Our DSCR loan program focuses on the income potential of the property, using a simple ratio: if the monthly rent covers the monthly mortgage payment (typically 1.0 or greater), you may qualify. With flexible credit requirements, no limit on the number of properties financed, and options for short-term rentals or long-term leases, DSCR loans offer the flexibility and speed investors need in today’s market. Whether you're buying or refinancing, this loan is built to help your investment work for you.
What can I use a DSCR loan for?
DSCR loans can be used to purchase or refinance investment properties. Refinances can be rate/term or cash out.
What is the minimum credit score for a DSCR loan?
You will need a credit score of 640 or higher for a DSCR loan.
How much can I borrow with a DSCR loan?
DSCR loans are available up to $3,000,000.
How much down payment do I need with a DSCR loan?
DSCR loans will require at least a 20% down payment. More down payment may be required based on credit score and loan balance.
What documentation do I need to provide for a DSCR loan?
DSCR loans will require that you fully document your down payment and reserve assets. You will need to provide two months bank statements showing adequate funds for down payment and any required reserves.
What types of properties can be financed with DSCR loans?
DSCR loans can be used to finance single family residences, multi-family properties up to 4 units, condominiums, and townhomes.
Can I use a DSCR for short term rentals?
Yes, we allow for short term rentals with our DSCR program. The DSCR is calculated using historical rental incomes from Airbnb, VRBO, Homeaway, or any other applicable short-term leasing company.
Can I close a DSCR loan in the name of an LLC or Corporation?
Yes, DSCR loans are intended for business purposes and may close in the name of your LLC, Corporation or General Partnership.
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