DSCR (1-4 residential units)
Investment property loans for 1-4 unit properties based on Debt Service Coverage Ratio
Series Z (≥0.75)
Series 1 (No Ratio)
Series 2 (≥0.75)
Series 3 (≥0.75)
Series 4 (≥0.75)
Series 5 (≥0.75)
Series 6 (No Ratio)
Series 7 (≥1.00)
DSCR (1-4 residential units)
About program
DSCR (Debt Service Coverage Ratio) loans measure property cash flow rather than the borrower’s personal income. For 1-4 unitproperties, the lender focuses on rental income to cover the monthly mortgage payment. If the rental income meets or exceeds themortgage payment (DSCR ≥ 1.0), borrowers can qualify with minimal personal income documentation.
Key features
- No deposit sourcing
- No minimum DSCR ratio up to 75% LTV
- No tradeline requirement w/ 3 credit scores
- Unlimited cash in hand ≤65% LTV
- SFR, condos, 2-4 up to 80% LTV
- Condotels and studios up to 75% LTV
- 2 months reserves
- 3 months cash out seasoning
- Cash-out used for reserves
- AIR DNA & STR income accepted
- Loan amounts up to $3.5m
- Unlimited 30 days lates allowed
- Vacant properties allowed
- Rural up to 20 acres allowed
Required to Disclose
Credit report
(cannot be older than 60 days) - must be merged into the LOS.
Borrowers' ID
(passport or driver's license).
Purchase contract
(if applicable)
Complete loan application
(including income & employment)
Submission form completed
Copy of lease agreement(s)
(if applicable)
Copies short term income statement(s)
(if applicable)
Required to Underwrite
(in addition to above)
Credit report
(cannot be older than 60 days) - must be merged into the LOS.
Borrowers' ID
(passport or driver's license).
Purchase contract
(if applicable)
Complete loan application
(including income & employment)
Submission form completed
Copy of lease agreement(s)
(if applicable)
Copies short term income statement(s)
(if applicable)
FAQ
What if the DSCR is below 1.0?
Some programs allow below 1.0 DSCR or no ratio with additional requirements, lower LTV, or higher rates.
Can I use Airbnb/short-term rental income?
Yes, we accept short-term rental income such as AIRDNA, 12 months lookback or short-term 1007.
Are first time investors or first time homebuyers allowed?
Yes, our DSCR program allows first time investor and first time homebuyers with certain restricitons.
Other programs
Standard doc
- No tradeline requirement w/ 3 credit scores
- Non-perm up to 90% LTV
- DTI up to 55%
- Unlimited cash-in-hand
- Cash-out used for reserves
- SFR, condotels, condos, studios, 2-4
- Loan amounts up to $4m
Bank statements
- No tradeline requirement w/ 3 credit scores
- Business or personal
- 50% standard expense
- Min 10% expense with accountant letter
- Non-perm up to 90% LTV
- Unlimited cash-in-hand
- 3 month cash-out seasoning allowed
- Cash-out used for reserves
- SFR, condotels, condos, studios, 2-4
- Loan amounts up to $4m
Profit & loss only
- No tradeline requirement w/ 3 credit scores
- No bank statements
- 12 or 24 months accepted
- Non-perm up to 80% LTV
- Unlimited cash-in-hand
- Cash-out used for reserves
- 3 months cash-out seasoning allowed
- SFR, condotels, condos, studios, 2-4
- Loan amounts up to $3m
- CPA, EA, CTEC, PTIN
Asset utilization
- No tradeline requirement w/ 3 credit scores
- Non-perm up to 80% LTV
- Unlimited cash-in-hand
- Cash-out used for reserves
- SFR, condotels, condos, studios, 2-4
- Loan amounts up to $4m
- 100% of checking, savings, money market
- 70% of stocks, bonds, mutual funds
- Divide by 84
Foreign national
- Bank statement and P&L up to 80% LTV
- DSCR ≥ 1 up to 75% LTV
- No DSCR ratio up to 65% LTV
- 6 months reserves
- No deposit sourcing
- No credit reference letters
- No asset seasoning in US account
- No visa
- Loan amounts up to $2m
- Condotels, studios, condos, 2-4 up to 70% LTV
- ITIN borrowers allowed
- No 3rd party primary address verification
1099 only
- No tradeline requirement w/ 3 credit scores
- 1 or 2 years - 1099 or transcripts
- 12/24 month average minus expense ratio
- Non-perm up to 80% LTV
- Unlimited cash-in-hand
- 3 months cash-out seasoning allowed
- Cash-out used for reserves
- SFR, condotels, condos, studios, 2-4
- Loan amounts up to $4m
DSCR (5–8 units & 2–8 mixed use)
- No deposit sourcing
- Min DSCR of 1
- No tradeline requirement w/ 3 credit scores
- $1m cash in hand
- Cash-out up to 65% LTV
- Commercial space <50% allowed
- Loan amounts up to $2m
Cross collateral
- No deposit sourcing
- Min DSCR of 1.2
- No tradeline requirement w/ 3 credit scores
- Unlimited cash-in-hand
- Minimum per property balance $50k
- Minimum of 3 properties
- Maximum of 25 properties
- Cash-out up to 65% LTV
WVOE only
- No tradeline requirement w/ 3 credit scores
- No tax return, W2, or paystubs
- Non-perm up to 80% LTV
- Unlimited cash-in-hand
- Cash-out used for reserves
- SFR, condotels, condos, 2-4
- Loan amounts up to $3m
- 2 months bank statements required
Closed end second
- Cash-out used for reserves
- Loan amounts up to $500k
- Combined loan amount up to $5m
- Standard doc, bank statements, P&L, WVOE, & 1099 income types
- Primary, second homes, and investment
- AVM only for loan amounts <$250k
- Non-permanent residents allowed
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