The best rates
Close in 2 weeks
No income docs
Fast clear to close
Close in 18 days or less. Order appraisal on day one.
Flexible guidelines
Scores as low as a 575 credit score, no title seasoning, close in an LLC, no ratio.
Start with a soft credit check
Receive a full pre-approval with just a soft credit check.
Different rates available
Access the entire rate stack for your scenario. Know all of your options.
85% LTV on rate/term and purchases
80% LTV on cash out
$100M max loan amount
$75k minimum loan amount
600 minimum credit score
No ratio allowed
No title seasoning
Vesting under LLC ok
First time buyers / investors ok
$50k minimum loan amount
What documentation is required for a DSCR loan application?
- Proof of rental income (lease agreements, rent rolls). If unleased, this is not required.
- Appraisal report with rental income analysis (Form 1007)
- Property insurance and flood insurance (if applicable)
- Entity documentation (if closing in an LLC or other legal entity)
- Mortgage statement for any mortgages
- ID or Driver's License Copy
- Social Security Card Copy
What is the minimum DSCR?
The minimum DSCR is 0. The property can be unleased, a short term rental, a month to month lease, or a long term lease. The DSCR is calcualted by the 1007/ comparabale market rent appraisal. If the market rent is low on the appraisal, then 3 months proof of rent can be used to supersede the appraisal.
How is the DSCR ratio calculated?
DSCR is calculated by dividing the rental income by the total (PITIA) mortgage payment. For example, if the rental income is $5,000 and the mortgage payment (PITIA) is $4,000, the DSCR would be 1.25.
What is the minimum title seasoning?
There are some options available with title seasoning as low as 30 days. This is ideal for recently purchase properties that have been rehabbed.
What if the market rental income comes in lower than expected?
It is always possible to adjust the ratio, either by adjusting the loan amount, a lower rate, or opting for interest only. Or, with 3 months proof of rent, the market rent can be superseded.
Can I borrow through my LLC?
Yes. You’ll limit your liability without sacrificing rate.
Can I use a DSCR loan to refinance an unleased property?
Yes, you can refinance an unleased property using a DSCR loan. However, the maximum Loan-to-Value (LTV) ratio must be reduced by 10% if the property is unleased at the time of refinance.
What are the eligible property types for DSCR loans?
1-29 unit residential properties
Condominiums (both warrantable and non-warrantable)
Planned Unit Developments (PUDs)
Townhomes
Condotels
Manufactured homes
Can DSCR loans be used for properties listed as short-term rentals?
Yes, DSCR loans can be used for properties listed as short-term rentals, such as those on platforms like Airbnb or VRBO. The DSCR for these properties is calculated based on the average actual rental income over 12 months or the market rent from the appraisal, depending on whether it's a purchase or refinance transaction.
What are Prepayment Penalties (PPP) in DSCR Loans?
Prepayment Penalties (PPP) are fees that are charged if a borrower pays off a loan before a specified period. These penalties are standard in DSCR loans and are offered in 1-year, 2-year, and 3-year options. The penalties are structured as follows:
1-year PPP: A penalty applies if the loan is paid off in the first year.
2-year PPP: Penalties apply if the loan is paid off in the first or second year.
3-year PPP: Penalties apply if the loan is paid off in the first, second, or third year.
The penalty itself varies from 1% of the loan amount for 1 year PPP options to 6 months of interest for 80% of the remaining balance.
What loan terms are available?
30-year fixed-rate mortgages
30-year fixed interest-only loans (1o years interest-only)
5/1 Adjustable Rate Mortgages (ARMs)
40-year fixed interest-only loans (10 years interest-only)
15-year fixed rate mortgages
What are the reserve requirements for DSCR loans?
Reserve requirements vary based on the Loan-to-Value (LTV) ratio:
No reserves required for LTV ≤ 65%
3 months of PITIA reserves for LTV between 65% to 70%
6 months of PITIA reserves for LTV > 70% or when DSCR is under 0.75
Cash-out transactions allow cash-out proceeds as reserves.
What if my property that I wish to refinance is listed for sale?
The property would have to be removed from the market prior to submitting the loan to underwriting. Additio
The lowest is 15% down, but it does require a DSCR of 1, which means the rent must cover the mortgage payment.
The pricing is better with higher DSCR ratios and higher downpayment's.
There are options for long-term leases, unleased property, and short-term rentals, such as Airbnb.
If it's a short-term rental, an average is okay.
This can be through banks statements, cancelled checks, etc. The amount received has to match the amount in the agreement.
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