Rental income qualifying
DSCR Loans
Qualify on the property's cash flow, not your personal income.
A DSCR loan measures whether rent covers the payment. If the property cash-flows, the file can move even when personal debt-to-income would stall a conventional mortgage. That is how investors add doors without waiting on last year's return.
Published terms start at 5.4% with leverage up to 80% of the purchase price. Structures include 30-year fixed and interest-only options. Eligible assets are non-owner-occupied rentals: single-family, condos, townhomes, two-to-four units, and small multifamily.
Eligible property
- Single-family rental
- Condominium
- Townhome
- 2 to 4 units
- Small multifamily
- Non-owner occupied
Figures
- Interest rate
- Rates from 5.4%
- Max LTV
- Up to 80% LTV
- Qualification
- No personal income docs
- Structure
- 30-year fixed or interest-only
- Income
- Property rent, not W-2s
- Prepayment
- No prepayment on select programs
Questions on this program
Most programs look for rent that covers the proposed payment, often at a 1.00 ratio or better. A stronger ratio usually prices better. Short-term rental income can be considered on some programs with the right history.