Qualify by Property Income,
Not Tax Returns

DSCR stands for Debt Service Coverage Ratio. A DSCR loan qualifies the property based on its rental income relative to the mortgage payment — not the borrower's personal tax returns or W-2 income. DSCR is calculated by dividing gross monthly rent by the total monthly housing payment (principal, interest, taxes, insurance, and HOA).

Yes. Properties with a DSCR below 1.0 are still eligible, though loan-to-value ratios are lower and credit score requirements are higher. At 700+ FICO, you can get up to 75% LTC on a purchase with a sub-1.0 DSCR. The lower the DSCR, the more equity the lender requires.

No. DSCR loans are underwritten based on the property's rental income potential, not the borrower's personal income or tax returns. This makes them popular with self-employed investors or those with complex tax situations.

Minimum FICO ranges from 640 to 700 depending on the loan amount and DSCR ratio. Higher credit scores unlock higher loan-to-value ratios and larger loan amounts. Experienced investors with 700+ FICO can access up to $3.5M.

Prepayment penalties range from 3% to 5% in year 1, declining annually. Typical options are 1-year, 2-year, 3-year, 4-year, or 5-year prepay periods. Shorter prepay periods have lower Year 1 penalties but shorter protection windows.

Single family homes, condos, 2–4 family properties, and townhomes. All loans are business-purpose, made to LLCs, and require full appraisals.