Loan Program
DSCR Loan in 35 States + D.C.
An investment property loan based on the rent the property brings in.
What is a DSCR loan?
A DSCR (debt service coverage ratio) loan is for investment property. The lender looks at the property's rent compared with its loan payment, instead of only your own income. Who's eligible depends on the property and the lender.
Who looks at a DSCR loan
- Real estate investors
- Buyers of rental property
Where a DSCR loan can help
- Based on the property's rent
- May suit investors whose income is hard to document
The steps, in order
A first conversation, then a review of your goals and finances, then comparing loans. After that come a secure application, your documents, underwriting, and final approval and closing. No approval is implied before underwriting.
- 1.A first conversation
- 2.A review of your goals and finances
- 3.Comparing loans
- 4.A secure application
- 5.Your documents
- 6.Underwriting
- 7.Final approval and closing
What to weigh with a DSCR loan
- Rates and terms may differ from a conventional loan
- The rent has to cover the loan payment
What a lender reviews for a DSCR loan
- The property's debt service coverage ratio
- The type of property and its rent
- Your experience as an investor
Property rules for a DSCR loan
- • A review of the rental income
- • The home's condition and appraisal
Documents for a DSCR loan
- The rent schedule or lease
- Documents for the property
- Documents for your LLC or other business, if you buy through one
The down payment on a DSCR loan
Mortgage insurance on a DSCR loan
Questions to ask Bert about a DSCR loan
- Does my situation fit this kind of loan?
- What documents will I need?
- What costs should I plan for besides the down payment?
- What debt service coverage ratio does my property support?
Talk it through with Bert
Program availability and eligibility vary. Ask Bert whether this loan fits your situation.
Schedule a CallImportant
This is educational information, not a commitment to lend or a guarantee of eligibility. Eligibility, pricing, rates, and terms depend on the borrower and transaction. A licensed mortgage professional must review your complete scenario.