DSCR Loan Program Business Purpose Loan
H2: What Is a DSCR Business Purpose Loan?
A DSCR (Debt Service Coverage Ratio) Business Purpose Loan is designed for investors purchasing or refinancing income-producing properties. Approval focuses on the property’s cash flow—not the borrower’s personal income—making it ideal for rental and portfolio expansion.
H2: Key Highlights
- Loan Types: Purchase, Rate & Term Refinance, Cash-Out Refinance
- Minimum DSCR: 0.50 for standard transactions; 1.00 when using short-term rental income with a low market score
- Eligible Properties: 1–4 unit homes, condos, condotels, leasehold estates, PUDs
- Loan Amounts: $100,000 up to $2M (subject to DSCR and LTV)
- Max LTV: Up to 85% for qualifying purchases; lower for cash-out refinances
- Terms: 30- or 40-year fixed, interest-only options, or 5/6, 7/6, 10/6 ARMs
H2: Benefits of a DSCR Business Purpose Loan
- No personal income or employment verification
- Qualify based on property rents vs. monthly payment (PITIA)
- Flexible underwriting for first-time or experienced investors
- Cash-out available for business use (subject to LTV and reserves)
H2: Eligibility Overview
- Credit Score: 660+ (680 for first-time investors)
- Reserves: 6–9 months PITIA depending on loan size
- Property Use: Must be non-owner occupied and held for investment
- Rental Income Docs: Lease agreements or market rent (long-term); AirDNA/12-month STR history for short-term rentals
Why Choose This Program?
Our DSCR Business Purpose Loan lets you leverage rental income to qualify, grow your portfolio, or tap equity for new projects—all while avoiding strict income documentation.
Available in the Following States:
Alabama, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, New Jersey, New Mexico, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.