No Income Verification

Soft Credit Pull for 1-4 Unit Properties

Frequently Offering Lower Rates than Conventional Mortgages

No Rental Experience Required for Preferred Pricing

Submit Deal Request Terms

DSCR of 1.0 or higher means the property generates enough rental income to cover the mortgage payment.

1-4 Units

Multi 5-10

Multi 11+ / Mixed Use

Typical Docs Required to Close

• Credit/Background Check for all principals with at least a 20% ownership interest
• Bank Statements/Investment Accounts to cover cash to close
• If a Refi, Proof of receipt of 3 months rental income or security deposit if new lease
• Personal Financial Statement (PFS) and List of Real Estate Owned (REO)
• Entity Docs – Articles of Organization/Operating Agreement
• Insurance Quote

What about tenants that do not have, or are on an expired lease (aka Month to Month)

In these cases, the lender will accept a seller signed estoppel that details the tenants name, apartment number, and monthly rent.

How is rental income calculated for DSCR?

Rental income is typically based on a professional appraisal that includes rental comparables (comps) in the area, or existing lease agreements if the property is already rented. Most lenders will use the lesser of leases and appraised rental value.

Are there prepayment penalties on DSCR loans?

Prepayment penalties vary by lender and loan program. Many DSCR loans offer step-down prepayment penalties (decreasing over time) or no prepayment penalty options. We’ll help you find programs that match your exit strategy.

The most typical structure is 5/4/3/2/1 step down, meaning 5% penalty in year 1, 4% in year 2, 3% in year 3, 2% in year 4, 1% in year 5, and no penalty thereafter.

Can I use DSCR loans for fix-and-flip properties?

DSCR loans are designed for rental properties that generate ongoing income. For fix-and-flip projects, consider our Bridge & Rehab loan programs which are better suited for short-term investment strategies.