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DSCR loan
Qualify on the property's rental income, not your personal income. DSCR stands for debt-service coverage ratio.
Nota: Página en español pendiente: esta página se publicará en español después de la revisión de un oficial de préstamo bilingüe. A continuación se muestra la versión en inglés.
Who it's for
Investors who own several properties or whose tax returns understate their income.
How it works
- The property's expected rent is compared to its proposed payment. If rent covers the payment, the loan can qualify without your tax returns.
- Rates and down payments are higher than conventional investor loans.
What you'll need
- Appraisal with a rent schedule
- Reserves
- Entity documents if buying in an LLC
When people hear DSCR, they think they need investor experience and/or a ratio over 1.0. That's the most common misunderstanding I correct.
I specialize in DSCR loans, and I wrote an informational guide for agents and investors called The Investor's Guide to DSCR Loans, published and for sale on Amazon.
— John Murphy, Business Development Manager · NMLS 236868
Common questions
Can I close in an LLC?
Often yes; it's one of the reasons investors choose DSCR.
Por diseño, esta página no muestra tasas, APR, pagos ni porcentajes de pago inicial. Esas cifras solo se publican con la divulgación completa exigida por la Regulación Z.