DSCR Debt Service Coverage Ratio Loan Program
This DSCR loan program is designed for real estate investors who want to qualify primarily through the rental income generated by the subject property. Unlike many investor programs that limit borrowers to 10 financed properties, this program may allow experienced investors to own up to 25 financed properties.
Borrowers must own their current primary residence.
Jumbo DSCR Loans Up to $10,000,000
Loan amounts are determined in part by the property’s debt service coverage ratio. Properties with stronger rental income may qualify for larger loan amounts, while financing options may also be available for properties with a DSCR below 1.00.
DSCR Loan Program Guidelines and Requirements
DSCR Ratio Options and Maximum Loan Amounts
- 0.75 DSCR: Up to $3,000,000
- 1.00 DSCR: Up to $5,000,000
- 1.25 DSCR: Up to $7,500,000
- 1.50 DSCR: Up to $10,000,000
Income and Employment Requirements
Qualification is based primarily on the property’s rental income rather than the borrower’s personal income or employment.
- Verification of Employment: Not required
- Verification of Personal Income: Not required
- Debt-to-Income Ratio: Not calculated
- Tax Returns: Not required
- IRS Form 4506-T: Not required
- IRS Form 4506-C: Not required
Credit and Asset Requirements
- Minimum Credit Score: 600
- Credit History: Clean credit required for the previous 24 months
- Assets: $1,000,000 in cash available for business purposes
Purchase and Rate-and-Term Refinance Guidelines
700 Credit Score
- 80% LTV: Up to $2,500,000
- 75% LTV: Up to $3,000,000
- 70% LTV: Up to $3,000,000
660 Credit Score
- 75% LTV: Up to $2,000,000
- 70% LTV: Up to $2,500,000
- 65% LTV: Up to $3,000,000
640 Credit Score
- 70% LTV: Up to $1,500,000
- 65% LTV: Up to $2,000,000
- 60% LTV: Up to $2,500,000
620 Credit Score
- 65% LTV: Up to $1,250,000
- 60% LTV: Up to $1,000,000
- 55% LTV: Up to $750,000
600 Credit Score
- 60% LTV: Up to $1,000,000
- 50% LTV: Up to $750,000
- 45% LTV: Up to $500,000
Cash-Out Refinance Guidelines
Cash-out refinancing is available, subject to credit score, LTV, loan amount, property eligibility, and underwriting requirements.
700 Credit Score
- 75% LTV: Up to $2,000,000
- 70% LTV: Up to $2,500,000
- 65% LTV: Up to $2,500,000
680 Credit Score
- 70% LTV: Up to $2,000,000
- 65% LTV: Up to $2,500,000
- 60% LTV: Up to $2,500,000
660 Credit Score
- 75% LTV: Up to $1,500,000
- 70% LTV: Up to $2,000,000
- 65% LTV: Up to $2,500,000
620 Credit Score
- 70% LTV: Up to $2,000,000
- 65% LTV: Up to $2,500,000
- 60% LTV: Up to $3,000,000
600 Credit Score
- 65% LTV: Up to $1,500,000
- 60% LTV: Up to $1,000,000
- 55% LTV: Up to $750,000
Available Loan Terms
- 30-year fixed-rate mortgage
- 5/1 adjustable-rate mortgage
- 7/1 adjustable-rate mortgage
- 10/1 adjustable-rate mortgage
- 40-year fixed-rate mortgage with an interest-only option
- Minimum 700 middle credit score for the 40-year interest-only option
Property and Transaction Guidelines
Inherited Properties
Inherited properties are permitted, including properties acquired through divorce, legal separation, or the dissolution of a domestic partnership.
Six months of ownership seasoning is required when using the current market value for a cash-out refinance.
Delayed financing is not permitted.
Eligible Property Types and Occupancies
- Primary residence: Single-family residence only
- Second home: Single-family residence only
- Non-owner-occupied investment property: Single-family residence only
- Non-warrantable condominiums: Eligible
- Condotels: Eligible
Eligible Borrowers and Vesting
Eligible Borrower Types
- Foreign nationals
- Permanent resident aliens
- Non-permanent resident aliens
- Non-occupant co-borrowers
Vesting Options
- Corporations
- Limited liability companies
Power of Attorney
A power of attorney may be permitted for:
- Purchase transactions
- Rate-and-term refinances
Additional Underwriting Notes
- Employment gaps exceeding 60 days are not permitted without an official employment offer letter.
- Experienced real estate investors may have up to 25 financed properties.
- All loans remain subject to property, credit, asset, reserve, and underwriting requirements.
Available States
This program is available in:
Alabama, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Maine, Maryland, Massachusetts, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, and Washington.
Last Updated on 2 days ago by Broker Mortgages