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DSCR LOANS
DSCR LOANS
A DSCR loan is for real estate investors, where approval is based on the property's rental income, not the borrower’s personal income. It compares the property’s income to the loan payments. No job or income verification is needed, making it ideal for investors​​.
DSCR Loans Explained
DSCR (Debt Service Coverage Ratio) loans provide financing for real estate investors looking to purchase and manage income-generating properties. Unlike traditional loans that rely on personal income, DSCR loans focus on the cash flow generated by the property itself, making them ideal for experienced investors seeking to expand their portfolio without the burden of income documentation.
Main Features of Our DSCR Loans
Flexible LTV Options: Loan-to-Value ratios up to 80%, providing significant financing opportunities for property acquisition.
No Income Verification: Approval is based on the property's rental income, not the borrower’s personal financials.
Investment-Focused: Suitable for both short-term and long-term rental properties, allowing you to grow your real estate investments efficiently.
Why Choose Our DSCR Loans?
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Streamlined Approvals: Quick and efficient approval process focused on the property’s performance, ensuring you secure investments without unnecessary delays.
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Maximized Leverage: Use rental income to qualify for higher loan amounts, giving you the ability to scale your real estate holdings.
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Portfolio Expansion: Whether you're purchasing a new property or refinancing an existing one, our DSCR loans provide the flexibility to grow your portfolio while keeping personal capital liquid.
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Cash Flow-Based Qualification: Approval is tied to the property's ability to generate rental income, allowing you to focus on acquiring high-potential assets.
Our DSCR loans are designed to help real estate investors maximize their property investments by focusing on cash flow rather than personal income. With flexible terms and a streamlined process, these loans offer an ideal solution for growing your investment portfolio.
Qualification Criteria
Determine if You Qualifies for DSCR Loans
Credit Score
Minimum 620 FICO required for loan amounts up to $1 million. Higher loan amounts may require a minimum FICO of 700 for better terms​​.
Property Value
Minimum property value of $100,000 to ensure investment viability​.
Loan Term
Loan terms range from 5 to 30 years, offering flexibility based on the investment strategy
Property Type
Eligible property types include single-family homes, 2-4 unit properties, condos, townhomes, and multifamily properties​​.
Maximum Loan-to-Value (LTV)
Up to 80% LTV for purchases and rate/term refinances, and up to 75% LTV for cash-out refinances​​.
Prepayment Penalty
Most terms come with no prepayment penalties, allowing early repayment without extra costs​.
Loan Amount
Loan amounts range from $100,000 to $2,500,000, accommodating various investment sizes​​.
Location Requirements
Properties must be in established or growing commercial areas. Rural properties are generally ineligible unless they meet specific commercial viability criteria​.
Liquidity Requirements
Borrowers must provide for closing costs, down payment, and reserves of 6 to 12 months, depending on loan size and LTV​.