Answers
DSCR loan FAQ
Real answers to the questions investors ask before they apply. Still have one? Call 863-353-2712.
- What is a DSCR loan? +
- A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that qualifies based on the rental income the property generates — not your personal income. No tax returns, W-2s, or pay stubs are required.
- Do I need to provide tax returns? +
- No. DSCR loans do not require personal or business tax returns, 4506-T transcripts, or any IRS documentation. This is the core benefit of the program.
- Can I close in an LLC? +
- Yes. DSCR loans are designed for investors and we routinely close in LLCs, LPs, and corporations. We just need entity formation documents and an operating agreement.
- What credit score do I need? +
- Most programs start at 620, with best pricing at 720+. For 5+ unit multifamily, we generally recommend 660+ for the smoothest underwriting.
- What is the minimum DSCR? +
- Many of our programs go as low as 0.75 DSCR (and some offer no-ratio with pricing adjustments). A 1.00–1.25 DSCR typically gets the best rates.
- Can I finance 5+ unit multifamily without going commercial? +
- Yes. Our DSCR program covers 5–10+ unit small multifamily on a 30-year fixed (or ARM) without the global cash-flow analysis, balloons, and tax-return requirements of traditional commercial loans.
- What's the maximum LTV? +
- Up to 80% LTV on 1–4 unit purchases, up to 75% on 5+ unit purchases, and up to 70–75% on cash-out refinances depending on credit and DSCR.
- Are short-term rentals (Airbnb / VRBO) eligible? +
- Yes. We have DSCR programs that qualify based on short-term rental income (12-month STR history or AirDNA projections), as well as long-term market rent.
- Can first-time investors qualify? +
- Yes. Unlike many DSCR lenders, we have programs for first-time investors. Some programs require prior landlord experience for the best pricing — talk to us about your scenario.
- Do you lend to foreign nationals? +
- Yes, on select programs. Foreign-national DSCR loans typically require larger down payments (30–35%) and reserves held in a US account.
- How long does closing take? +
- DSCR loans typically close in 21–35 days. The appraisal (with a 1007 rent schedule) is usually the gating item.
- Is there a prepayment penalty? +
- Most DSCR loans have a step-down prepayment penalty (e.g., 5/4/3/2/1) that lowers your interest rate. Buy-out and no-prepay options are also available.
- What states are you licensed in? +
- We are licensed in AL, AK, AR, CO, CT, DE, DC, FL, GA, HI, IL, IN, KS, KY, LA, ME, MD, MA, MS, MO, MT, NH, NM, NC, OH, OK, PA, RI, SC, TN, TX, VA, WA, WV, WI, and WY — 35 states plus DC.
- What documents do I actually need? +
- ID, credit authorization, two months of bank statements (for reserves), entity docs if vesting in an LLC, purchase contract or current mortgage statement, and a lease or rent schedule. That's it.
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