Qualify on the rent. Close in your LLC. Keep buying.
DSCR financing looks at one thing: does the property's rent cover the payment. No tax returns, no W2s, no DTI. That's why investors who get told "no" by their bank get told "when" by us.
Two DSCR programs. One of them fits.
For properties that cash flow
Rent divided by the full payment (principal, interest, taxes, insurance, HOA) comes out at 1.0 or better. Best pricing. The cleanest file in lending: lease, appraisal, credit, reserves, done.
For appreciation plays
Rent doesn't fully cover the payment yet, and you're buying for the upside. Still lendable. Expect a bit more down and slightly higher pricing. Interest only is available to stretch the coverage.
| Credit score | Purchase / rate & term | Cash out | 2 to 4 units (cap) |
|---|---|---|---|
| 720+ | 85% | 80% | 80% / 75% |
| 700 to 719 | 80% | 80% | 80% / 75% |
| 680 to 699 | 80% | 75% | 80% / 75% |
| 660 to 679 | 75% | 75% | 75% / 75% |
| 640 to 659 | 75% | 70% | 75% / 70% |
Maximum LTVs by program matrix for loan amounts $100,000 to $1,000,000 with six months reserves. Short term rentals allowed with a 5% LTV reduction. First time investors: max 75% LTV, 700+ credit, DSCR of 1.00 or better and 12 months reserves. Figures are program caps, not a commitment. Your file is priced on the full picture.
Vest in an entity
Close in your LLC or corporation. Personal guarantee, no personal income docs.
Short term rentals
Airbnb and VRBO income counts with 12 months of statements on a refinance.
Interest only
10 year I/O periods on 30 and 40 year terms to maximize cash flow and coverage.
No seasoning options
Cash out with no seasoning is available with a prepayment penalty. Rate and term has no seasoning at all.
How much equity can you pull?
Appraised value drives the loan, not what you paid. Rehab receipts stop being a problem. Enter the numbers and see the ceiling.
Sitting in a 10%+ bridge loan? Let's get you out before the balloon.
Most fix and flip lenders don't do the permanent loan. We do. Refinance into a 30 year DSCR loan off the appraised value, pay off the hard money, and keep the property cash flowing.
- Appraised value drives the loan, even inside 12 months of purchase
- No seasoning with a prepayment penalty, or 6 months from your existing note date
- Rental income from a lease or market rent survey. No personal income docs
- Closings in as little as 10 days on clean files, once we've got your docs and signed forms in
There's just less to verify.
A DSCR take out qualifies on the property's rent, so there are no income docs to chase and no tax returns to reconcile. The appraisal is the long pole. We order it day one.
Does the deal pencil?
Short term rehab and bridge money, placed through our private lending partners, with the DSCR take out ready when you decide to hold instead of sell. Enter the deal and see the structure.
Straight answers.
The questions investors ask on the first call.
What is a DSCR loan, in plain terms?
Debt Service Coverage Ratio. The lender divides the property's monthly rent by the full monthly payment. At 1.0 the rent covers the payment. Above 1.0 you get better pricing. Below 1.0 we use the No Ratio program. Your personal income is not part of the equation.
Do I need to be an experienced investor?
No. First time investors are eligible with a 700+ score, 75% max LTV, rent that covers the payment, and 12 months of reserves. Once you have owned a rental for 12 months, the full grid opens up.
Can I close in my LLC?
Yes. Entity vesting is standard on DSCR. You'll sign a personal guarantee and provide the LLC's formation documents and operating agreement.
How much do I need in reserves?
Six months of the new payment for loans under $1M. Reserves have to be your own funds or cash out proceeds. Less than six months is possible with a lower LTV.
What about a property I just bought with hard money?
That's our most common file. With a prepayment penalty there is no seasoning at all, and we lend on the appraised value rather than your purchase price. Without a prepay, six months from the note date to the new closing.
Is there a prepayment penalty?
Prepayment penalties are allowed on investment property and buy you a better rate. Typical structures are 1 to 5 years and you choose. No penalty options exist at slightly higher pricing.
Which states?
We lend nationwide as a direct lender. New York and Vermont are not available. A few local restrictions apply in Illinois, Maryland and Pennsylvania. Ask and we'll confirm your market in a minute.
Ready to run the real numbers?
Apply online in about 12 minutes, or book a 30 minute strategy call.