DSCR Loans
No tax returns or paystubs are required to qualify.
DSCR Loan (Debt Service Coverage Ratio), is a type of long-term rental financing for refinances and new purchases. In our DSCR loan program, you can qualify based on property cash flow, not personal income.
DSCR Loan Highlights
- Low Rates
- 680+ FICO Score
- $100,000 Minimum Property Value
- Shorter timeline with no prepayment options
- No income or employment required
- Single family and 2-10 unit residential
- Portfolio loans, vacant properties, and semi-rural properties welcome
Loan Features
Loan Amounts
Minimum Property Value
Max LTV
Amortization
FICO Score
Frequently Asked Questions
The DSCR is calculated by dividing the property’s net operating income (NOI) by its total debt service (the sum of principal and interest payments on the loan).
DSCR = Monthly Rent / Monthly Loan Payment
A DSCR of 1.0 means the property generates just enough income to cover the loan payments. Most lenders want to see a DSCR of at least 1.0 to 1.25, depending on the loan program.
Like other hard money loans, DSCR hard money loans are typically secured by the property itself.
Typical document requirements for a DSCR hard money loan include:
1. Property financials (income statement, rent roll)
2. Property appraisal or valuation
3. Purchase agreement or contract
4. Borrower’s personal financial statements
5. Proof of funds for down payment or reserves
6. Property insurance information
7. Title insurance
8. Borrower’s credit report
9. Business entity documents (if applicable)
10. Exit strategy plan (how the borrower plans to repay the loan)
11. Any additional documents specific to the lender’s requirements or the property’s condition.
These documents help lenders like us assess the property’s value, the borrower’s ability to repay the loan, and the overall risk associated with the transaction.
Let’s work together on your next real estate project
Get a customized financing solution for your investment property. Set up a free consultation with us via call, video conference, or an in-person meeting.