Types of Loans
DSCR Loans
Qualify on the property's rental income.
A debt service coverage ratio (DSCR) loan qualifies a rental property on the income it produces rather than on your tax returns or W-2s. The ratio compares the property's rent to its monthly mortgage payment, taxes, insurance and HOA dues.
Who it fits
- Real estate investors buying or refinancing rental properties
- Self-employed investors whose tax returns show lower income
- Investors growing a portfolio of rentals
- Short-term and long-term rental owners, depending on program
Key features
- No personal income verification on many programs
- Qualification based on property rental income
- Purchase, rate-and-term and cash-out refinance options
- Single-family, 2–4 unit and some condo properties
- Loans can close in an individual name or an LLC, depending on program
DSCR loans are for investment properties only. Minimum ratio, down payment, credit and reserve requirements vary by program. Eligibility, loan terms, down payment requirements, rates, fees and program features vary by borrower qualifications, property type and lender guidelines. Contact us to see which program fits you.