1-4 Unit DSCR Loans & Requirements
DSCR Loans (Debt Service Coverage Ratio loans) are specialized financing products designed specifically for real estate investors who want to purchase or refinance rental properties without the traditional income verification requirements of conventional mortgages. Unlike standard home loans that focus heavily on personal income documentation, DSCR loans evaluate the property’s cash flow potential by analyzing the rental income it can generate relative to the monthly debt payments. This innovative approach allows investors to qualify based on the property’s ability to pay for itself, making it an ideal solution for self-employed individuals, entrepreneurs, or seasoned investors with complex financial portfolios who may struggle with traditional lending requirements.
The primary benefit of DSCR Loans lies in their streamlined qualification process and investor-friendly terms, enabling real estate investors to scale their portfolios more efficiently. These loans typically require minimal documentation, no employment verification, and can close faster than conventional financing, allowing investors to move quickly on profitable opportunities in competitive markets. Additionally, DSCR loans often permit investors to finance multiple properties simultaneously and may offer options for interest-only payments during the initial term, maximizing cash flow for property improvements or additional investments. For serious real estate investors looking to build wealth through rental properties, DSCR loans provide the financial flexibility and speed necessary to capitalize on market opportunities while building a sustainable, income-generating portfolio.
DSCR Loan Terms
Interest Rates:
Loan to Value (LTV):
Cashout Refi (LTV):
Origination Fees:
Loan Types:
Min Loan Amt:
Max Loan Amt:
Property Types
6.00 – 12.00%
Up to 85%
Up to 75%
1.25 – 2.00%
Purchase / Refinance
$150,000
$2,500,000
1-4 Units
DSCR Documentation
Application – A basic loan application with the borrower and property detail
Credit Authorization – Authorization form for the lender to run credit
Bank Statements – 2 months bank states showing 3-6 months liquid reserves
Leases – For long term rental properties, provide current leases
Insurance – Property insurance is required to be provided with t he lenders name.
Entity Documents – If borrowing as an LLC, the certificate of formation and article of incorporation or operating agreement.
Let`s Talk
Contact Us About A DSCR Loan
Your message has been sent
