A DSCR (Debt Service Coverage Ratio) loan is a type of mortgage designed for investment properties, where the loan qualification is based primarily on the property's cash flow rather than the borrower's personal income.

The DSCR is calculated by dividing the property's income (rent) by its total debt obligations. A DSCR greater than 1 indicates the property generates sufficient income to cover its debt payments.

Minimum DSCR requirements vary based on a few factors, but typically a ratio of at least 1.0 is accepted. However we have options for properties that don't cashflow or even vacant properties.

Credit score requirements differ based on a few factors, however a minimum FICO score of 620 is commonly required, with higher scores potentially securing better loan terms.

Depending on factors like property type, credit score, and DSCR, we have options available with down payments as low as 15%. (85LTV)

Yes, you can qualify for a DSCR mortgage even if you're purchasing your first investment property.

Yes we provide DSCR loans for properties intended for short-term rentals like Airbnb. DSCR ratio can be calculated based on rental income history or projections.

We'll usually ask for the lease agreement, proof of rent, a property appraisal, and sometimes your bank statements to verify reserves.

Yes you can take out DSCR loans under a business entity, such as an LLC, which can offer liability protection and potential tax benefits.

Yes, most DSCR loans have a prepayment penalty—usually based on a set number of months. You can choose a shorter or longer penalty period depending on your plans.