DSCR LOANS

OUR DSCR LOANS ARE SPECIFICALLY TAILORED FOR INVESTORS SEEKING A SIMPLE AND FLEXIBLE FINANCING SOLUTION FOR ACQUIRING LONG TERM AND SHORT TERM RENTALS

Our Rental Loans / Debt Service Coverage Loan program provides long-term financing for single family residential properties, multi-family properties, commercial properties and portfolios. Rental property loans / DSCR finance loans are essential to building long term wealth through rental real estate. Our mission is to provide our clients flexible, private real estate rental loans for long term and short term rentals, allowing our clients to attain financial freedom through real estate investing.

DSCR Loan Meaning: What does DSCR Mean? DSCR stands for debt service coverage ratio.. What is a DSCR Loan? Our Debt Service Coverage Ratio (DSCR) loan is a type of Non-QM financing commonly used in real estate investments. It measures the ability of a property’s income to cover its debt obligations. Debt obligations being the mortgage payments. Rather than your personal income, as the DSCR meaning in banking would look at your personal DTI (debt to income ratio), we look at the property’s DSCR. For our clients looking to hold their properties rather than flipping it. We offer a DSCR real estate long term loan in 30 or 40 year amortizations.

Single Property Rental Terms

Recourse

  • Full Recourse only

Rate Types

  • Fixed and adjustable rate options available

Experience

  • Not required

Loan Purpose

  • Purchase, rate-term refinance, or cash-out of a single rental property

Minimum FICO

  • 660

Amortization

  • Fully amortizing and Partial Interest Only options available

Borrower Type

  • Entity required

Property Types

  • Single family residences (SFR)

  • 2-4 unit properties

  • Warrantable condos

  • Townhomes

  • PUD

Vacancy Maximum

  • Purchases vacant are ok & 1 unit on a 2-4 unit refinance

Rural Properties

  • Not permitted

Foreign Nationals

  • 65% LTV

Lease Requirements

  • Leased Units: Lower of (i) in-place rent & (ii) market rent

  • Unleased Units: 90% of market rent

Maximum Loan-To-Cost

  • If owned < 3 months, 80% of total cost basis

Minimum Loan Amount

  • $75k - $5MM

Maximum Loan-To-Value (LTV)

  • Up to 80% on purchase and rate & term. Up to 75% on cash-out

Property Acquisition Minimum

  • 1 property per loan, up to 4 units max

Minimum Debt Service Coverage Ratio (Gross Rent/PITIA)

  • 1.05x

Seasoning Requirement (To use value vs. cost basis)

  • 90 days

Term

  • 30 years