DSCR Loan

⚡️Debt Service Coverage Ratio/ DSCR Program Highlights ⚡️

  • Used to buy investment property or for business-related cash-out refinance.
  • Property can be non-owner occupied if funds are for business use.
  • Ideal for real estate investors and business owners.

DSCR Loans (Debt Service Coverage Ratio Loans):

  • Used to assess the ability to repay a loan based on property's cash flow.
  • DSCR = Gross Income / PITIA (Principal, Interest, Taxes, Insurance, and Association Dues).

Program Highlights:

  • Max loan amount: $3,500,000.
  • Applicable to 1-4 family properties and condominiums.
  • 85% Loan-to-Value (LTV) for Purchase, Rate & Term Refinance.
  • 75% LTV for Cash-Out Refinance.
  • Minimum credit score: 620.
  • Non-warrantable condos are allowed.
  • Only for investment properties.
  • Gift funds are allowed.
  • No limit on the number of financed properties.
  • Short term rentals! Airbnb, VRBO, Purchase, Rate and Term Refi, Cash Out

What This Means for You:

  • If you're a real estate investor or business owner, you can use these loans to buy or improve investment properties.
  • The high LTV ratios and allowance for non-warrantable condos provide flexibility.
  • A lower credit score requirement makes it more accessible.

Actionable Step:

  • If you need funds for an investment property or a business-related purpose, consider applying for a DSCR loan to take advantage of the favorable terms.

⚡️DSCR No Ratio Highlights⚡️

  • No DSCR Calculation .75
  • 70% LTV for Purchase and Rate & Term Refi
  • 65% LTV for Cash Out Refi
  • Max Loan Amount $3,000,000
  • Down to 640 FICO
  • Gift Funds Ok
  • No Max on Financed Properties

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