DSCR Rental Loans

30 Year Fixed "DSCR" Loans
​Rates from 5.85%
​Debt Service Coverage Ratio loans uses the borrowers credit score and rental income as qualifier for the loan. "DSCR" is calculated as follows: Rental Income divided by the  principle, interest, taxes and insurance (PITI).
Rent / PITI = DSCR
​(i.e  if Rent is $1200 and PITI is $1000, then the DSCR is 1.2  (1200 / 1000 = 1.2)
Bank statements are usually required with 3-6 months reserves, but tax returns, check stubs, and other income documents are not required for loan approval. Non-Owner Occupied loans for Purchase, Rate Term Refinance and Cash-Out Refinances are eligible for DSCR loans

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Terms

Purchase
Up to 80% Loan to Value/Loan to Purchase Price
Rate and Term Refinance
Up to 80% Loan to Value
Cash Out Refinance
Up to 75% Loan to Value
​3 Months Seasoning for Full ARV
Debt Service Coverage Ratio
1.0 - 1.2
Asset Types
SFR, 2-4, Condos & Townhomes
Interest Rates
5.85% +
Origination Points
1 - 3
Other Requirements
Credit Score: 660+
Prepayment Penalty: 5/4/3/2/1 or 3/2/1
Locations: Nationwide, typically needs to be in cities with populations of 7,500+ (lender will determine location eligibility)
Rural Properties/Mobile Homes: No
Short Term Rentals: Yes
Minimum Loan Amount: $100,000
Maximum Loan Amount $3,000,000
Liquidity Requirements: Down payment, Closing Costs, &
​ 6 -12 months of PITI payments in reserves
No limit on number of properties owned
Recourse & Non-Recourse Portfolio Loans Available