Investment-property mortgages underwritten on property cash flow — not your W-2 or tax returns. 1–4 unit, condo, or short-term rental. Up to 80% LTV. Close in 21–30 days, in an LLC if you prefer.
DSCR loans are the dominant Non-QM investment-property product. They qualify the property — not the borrower — based on a single number: the ratio of gross monthly rent to monthly PITIA (principal, interest, taxes, insurance, association dues). If that ratio is at or above 1.0, the property covers its own payment, and most DSCR lenders will work the file. Above 1.20, you get preferred pricing.
The qualifying framework intentionally bypasses everything agency underwriting cares about: tax returns, W-2 income, DTI ratio, employment history, Schedule E rental adjustments, paystubs, employer verification. None of it is collected or reviewed. What is reviewed: the appraisal (including the appraiser's rent schedule on Form 1007 / 1025), your FICO, the subject property's title, and 2–6 months of liquid reserves.
| Loan amounts | $100K – $3.5M (jumbo programs available) |
| Property types | 1–4 unit SFR, condo, townhome, STR; 5–10 unit on certain programs |
| Max LTV — purchase | 80% (DSCR 1.20+, 700+ FICO) |
| Max LTV — rate/term refi | 80% |
| Max LTV — cash-out refi | 75% (DSCR 1.20+) · 70% standard |
| Minimum DSCR | 1.0 standard · 0.75–0.99 with LTV adjustment |
| Minimum FICO | 660 standard · 620 non-prime programs |
| Term | 30 yr fixed · 5/6, 7/6, 10/6 ARM · interest-only options |
| Prepayment penalty | 3–5 yr step-down typical (waivable at higher rate) |
| Reserves | 2–6 months PITIA (more for multiple properties) |
| Vesting | LLC, LP, trust, or personal name |
Guidelines are typical across our DSCR shelf. Specific programs vary ±5% LTV, ±0.10 DSCR, and adjust pricing within the bands above. We shop the file across multiple DSCR lenders to find the cleanest fit.
A DSCR (Debt Service Coverage Ratio) loan is an investment-property mortgage that qualifies the borrower based on the property's rental income rather than personal income or tax returns. The DSCR ratio = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, HOA). Lenders price tightest at DSCR 1.20+ and accept down to 1.0 in most programs.
Most DSCR programs start at 660 minimum FICO. 700+ unlocks the best pricing and highest LTV. A meaningful subset of non-prime DSCR programs accept 620–659 with larger down payment (typically +5%) and reduced LTV. Below 620 is possible on a few programs but pricing reflects the risk.
Purchase: 20–25% down for strong DSCRs (1.20+), 25–30% for DSCRs in the 1.0–1.19 range. Cash-out refi: up to 75% LTV (25% equity remaining) on strong DSCRs, 70% on standard. Rate-and-term refi: up to 80% LTV. Specific terms depend on credit, property type, and reserves.
Yes — DSCR loans are explicitly designed for LLC closing. Most investor-property holdings are structured this way for liability and tax-strategy reasons, and DSCR underwriting treats the LLC as the borrower with personal guarantees from the members. Closing in your personal name is also available if preferred.
No. DSCR loans qualify the property, not the borrower's personal income. We verify the rent (current lease or appraiser-determined rent comp), the property value (appraisal), and your credit. No DTI calculation, no tax returns, no employer verification, no Schedule E review.
Typical timeline is 21–30 days from full application to funding, assuming appraisal and title don't encounter delays. We've closed cleaner files in under 18 days when the borrower has documentation ready upfront: entity docs, ID, asset statements showing reserves, and any existing lease for the subject property.
1–4 unit single-family, condos (warrantable and most non-warrantable), townhomes, and short-term rentals on most programs. Multi-family 5–10 units on certain programs with stronger reserves. Condotels on dedicated condotel programs. Mixed-use, rural, and unusual property types case-by-case.
Conventional investment-property loans qualify on personal income and tax returns, cap you at 10 financed properties (Fannie/Freddie), and require Schedule E review. DSCR qualifies on the property, has no portfolio cap, allows LLC vesting, and requires no tax returns. Conventional usually wins on rate at 1–3 properties with clean personal income. DSCR wins on flexibility, scale, and LLC vesting. For investors past 5–10 properties, DSCR is typically the default tool.
We'll reply within 1 business day with a pre-quote and the documents we'd need to close.