Funding

• 2-4 Points Origination Fee

• 6-Month Term with an automatic 3-month extension

• Covers up to 100% of total project costs (including purchase and rehab) or 75% of the ARV, whichever is lower.

• Borrower must provide a fully-paid insurance policy.

APPROVAL REQUIREMENTS

• Minimum credit score of 640 required.

• $20,000 in liquid reserves.

• No recent bankruptcies or foreclosures.

• No tax returns or employment verification necessary.

• For residential investment properties (1-4 units) only.

• First lien only.

What is a DSCR Loan? A DSCR loan, or Debt-Service Coverage Ratio loan, is a type of financing designed specifically for real estate investors, where the loan approval is based on the property's income rather than the borrower's personal income. The DSCR measures a property's ability to cover its debt obligations with its cash flow, making it ideal for investors looking to finance rental properties or income-generating assets.

How DSCR is Calculated? The Debt-Service Coverage Ratio is calculated by dividing the property’s net operating income (NOI) by the total debt service (loan payments, including principal and interest). A DSCR of 1.0 means the property’s income is equal to its debt obligations, while a DSCR above 1.0 indicates a stronger ability to cover loan payments.

Why DSCR Loans Are Beneficial?

• No Personal Income Verification: Since approval is based on the property’s performance, you don't need to provide proof of personal income or employment.

• Easier Qualification: As long as the property generates enough income to cover the loan payments, you can qualify even with lower personal credit scores or financial history.

• Flexible Investment Option: Ideal for real estate investors who own multiple properties or prefer non-traditional financing options, DSCR loans allow you to grow your investment portfolio without relying solely on personal financial standing.

  Key Benefits of DSCR Loans:

• Focus on Property Performance: The property’s income potential takes precedence over personal income or employment history.

• Portfolio Growth: DSCR loans enable investors to scale their rental portfolios efficiently.

• Fewer Restrictions: Minimal personal financial documentation is required compared to conventional loans.

  This type of loan is perfect for real estate investors aiming to secure financing for rental properties based on the cash flow generated from those investments.

Terms

• 620 minimum FICO 

• Up to 80% LTV*

• Loan amount up to $3mm

• 30 year fixed, 5/6m ARM, 7/6m ARM

• Cash out up to 75% LTV**

• Cash out proceeds may be used for reserves

• DSCR as low as .80***

• Eligible for non-permanent residents (Foreign National DSCR is available under Foreign National Program)

*20% cash due from borrower , **25% cash due from borrower, ***additional restrictions apply