DSCR loan.
A loan for a rental property that qualifies on the rent the property earns, not your tax returns. How the ratio works and what to plan for, explained first.
A loan for a rental property that qualifies on the rent the property earns, not your tax returns. How the ratio works and what to plan for, explained first.
Debt Service Coverage Ratio compares the rent to the payment. If the rent covers the payment, the property can qualify on its own.
Self-employed investors, those with several properties, or anyone whose tax returns do not reflect their ability to pay.
DSCR loans typically ask for more down and may carry a prepayment penalty. Pricing reflects the simpler documentation. Your loan officer explains all of it.
The price, the current or expected rent and what you have for a down payment.
And compares a DSCR loan against a conventional investment loan if your income allows one.
Appraisal with a rent schedule, underwriting and closing. Support continues after.
The property is or will be rented to tenants.
The income supports the loan on its own.
You are self-employed or your returns understate your earnings.
You have reached the limits of conventional investment programs.
If your personal income documents cleanly, a conventional investment loan may price better. Your loan officer compares both.
Programs vary, and some allow a ratio below one with a larger down payment. Your loan officer tells you what applies to your property.
Generally no. Qualification rests on the property, your credit and your down payment.
Some programs allow it, using projected income. Your loan officer tells you which do.
Often, for the first few years. Your loan officer explains the terms and options.
Many DSCR programs allow it. Your loan officer confirms for the program you choose.
Tell us about the property and its rent. A loan officer runs the ratio and compares it against the alternatives before anything is offered. Pre-qualifying will not affect your credit score.
Pre-qualify for a DSCR loan
