Our Unique DSCR Mortgage Loans
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- Nationwide lending coverage
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- Real Estate Asset-Based loans – LTV’s up to 85% for purchase, 80% for rate-and-term refinancing, 75% for cash-out refinancing
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- No Seasoning for Cash-Out Refinancing (Use current Appraised Value)
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- Rental Income – Use the Higher amount of the Lease of the Appraisal(1007). Restrictions Apply
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- Quick closing, in as little as 3 weeks
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- No income verification or tax returns required
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- Extended amortization, exceeding traditional bank constraints
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- Limitless investment opportunities with flexible financing solutions
Our DSCR Loan Terms
Unlock tailored financing solutions for your 1-9 unit residential properties & some commercial properties.
We offer flexible DSCR loan terms with flexible underwriting terms based on your property’s cash flow for the subject investment property, not your personal income nor your business income.
DSCR Loan Overview
For purchase loans.
You can qualify for a purchase loan by using the projected income of the subject property.
Income projections are the rental income projections from the Appraisal using form 1007 (Rental Income Analysis) of the property.
Rental income can be either Long Term Rental Income or Short Term Rental Income.
Short Term Rental Income
Key DSCR Short-Term Rental Income Guidelines
- DSCR Ratio Requirement: Most lenders require a minimum DSCR of 1.0 or higher, meaning the property’s rental income must at least cover the monthly mortgage payment (Principal, Interest, Taxes, Insurance, and sometimes HOA fees – PITIA). A DSCR of 1.25 or higher often secures better loan terms.
- Income Calculation: Lenders assess income using one of two primary methods:
- Historical Data (for refinances): For properties with an operating history, lenders require 12 months of booking history from platforms like Airbnb or Vrbo.
- Projected Income (for purchases): If a property has no rental history, lenders rely on third-party data and projections. These reports, often from services like AirDNA or a property manager’s report, use comparable properties in the area to estimate potential income.
- Expense Factor Adjustment: Lenders typically apply an expense factor (e.g., a 20% to 25% reduction to gross income) when calculating the net operating income (NOI) to account for higher STR operating costs and seasonal fluctuations.
- Occupancy Rate: Projections often need to demonstrate a minimum occupancy rate, sometimes exceeding 60%, to qualify.
| Project Type | Single Family Residential, Multi-Family (2-9 Units), Condominiums, Townhomes, Condo-Hotels |
| Loan Amount | $50,000 – $10,000,000 |
| Loan To Value (LTV) | Up to 85% |
| Rent Coverage Ratio | 1.0x (No DSCR Available), Under 1.0 DSCR Ratio down to .75% DSCR Rato (5% reduction of LTV) No Ratio Loans (under .75 DSCR Ratio) – 75 LTV for purchase, 70 LTV Rate & Term, 65 LTV cash-out. |
| Loan Term | Fixed 30 year mortgage, 5/30, 7/30, 10/30, |
| Interest Rate | Starting at 5.875%+ |
| Rehab Financing | Not Available |
| Proceed Usage | Purchase Refinance (Rate & Term) Cashout (No-Seasoning Cash-out Refinance Available: 1-4 Unit properties, ) |
| Those Who Qualify | US Citizens, Foreign Nationals, Permanent Resident Alien |
| Minimum Credit Score | 650 |
| Rental Income – How to Calculate | We have the option to use the Higher amount of the Lease of the Appraisal(1007). ** Restrictions Apply – To use the higher of the lease vs. the 1007, (Must have proof/verification of 2 months of rental Income payment history, deposit of lease as well as a copy of the lease agreement) in order to use the higher of the lease vs. the 1007. |
| Pre-Payment Penalty | Options of: None, 1, 2, 3, 4, 5 YR Pre-payment Penalty – 3.2.1 or 5.4.3.2.1 |