For Cash-Flowing Rentals
DSCR Rental Loans
Best for investors seeking competitive financing based on the property’s rental income.
DSCR loans are designed for real estate investors purchasing or refinancing income-producing rental properties. They are especially useful for borrowers who want to qualify primarily through the property’s rental income rather than personal income or employment documentation.
Most borrowers should expect to make a down payment of approximately 20% to 25%. Qualified borrowers with strong credit, sufficient reserves, and relevant real estate investment experience may be eligible for financing with as little as 15% down. Final leverage depends on the complete borrower and property profile.
DSCR is generally calculated by dividing the property’s qualifying monthly rent by its monthly housing expense, including principal, interest, property taxes, insurance, and applicable association dues. If the property is vacant, market rent may be used instead of an existing lease when permitted by the program. The appraiser can complete a Form 1007 Comparable Rent Schedule to estimate the property’s market rent.
Our DSCR programs may allow a minimum DSCR of 0.75 and a minimum qualifying credit score of 660. Stronger credit, higher DSCR, greater experience, and lower leverage may result in more favorable terms. All loans remain subject to underwriting and program requirements.
Generally, no. DSCR loans qualify primarily using the property’s rental income, so personal W-2s, tax returns, and traditional debt-to-income calculations are typically not required. Borrowers must still provide the property, entity, asset, credit, and other documentation needed for underwriting.
Eligible properties may include single-family residences, two- to four-unit properties, townhomes, condominiums, and qualifying short-term rentals. Certain non-warrantable condominiums may also be considered. Property eligibility depends on condition, location, occupancy, rental use, and applicable program guidelines.
