DSCR Loan

(Debt Service Coverage Ratio)

Investment Property Financing

Investment Property Financing May Be Available Without Verifying Personal Income

A DSCR (Debt Service Coverage Ratio) loan is a Non-QM mortgage program that qualifies borrowers based on the rental income generated by an investment property.

 

Traditional mortgage loans are typically underwritten based on personal income, tax returns, W-2s, and Debt-to-Income (DTI) ratios. However, DSCR loans are qualified based on the rental income generated by the property itself.

 

As a result, DSCR loans are very popular among self-employed borrowers, real estate investors, and borrowers who own multiple properties.

 

Loan Factory works with more than 130 DSCR lenders, allowing us to compare interest rates, fees, qualification requirements, and program features from a wide range of lenders. Rather than shopping with just one bank, we can compare multiple Non-QM programs to help you obtain more competitive financing for a home purchase or refinance.

🔶 Loan Factory

Access to 130+ DSCR Lenders

🔶 Pre-Approval

Compare interest rates, fees, and loan terms from multiple lenders

🔶 One Credit Pull

Compare multiple lenders with a single credit report

🔶 Free Consultation

Terry Kwon
Loan Officer
(631) 624-4480

Multiple Investment Properties Allowed

 

 

DSCR loans generally offer much more flexibility regarding the number of investment properties owned compared to traditional QM mortgage programs.

 

 

✅ Multiple Property Investors

✅ Expand Your Real Estate Portfolio

✅ Single-Family Residences (SFR)

✅ Condominiums (Condos)

✅ 2–4 Unit Properties

What Is DSCR?

 

DSCR (Debt Service Coverage Ratio) measures how well a property’s monthly rental income can cover its monthly mortgage payment.

 

Formula:

DSCR = Monthly Rental Income ÷ Monthly PITIA

 

PITIA Includes:
  • Principal
  • Interest
  • Property Taxes
  • Homeowners Insurance
  • HOA Dues (if applicable)

Benefits of a DSCR Loan

 

 

✅ No Personal Income Verification Required

✅ No Tax Returns Required

✅ No DTI Calculation

✅ LLC Ownership Allowed

✅ Designed for Investment Properties

✅ Multiple Investment Properties Allowed

✅ Airbnb-Friendly Programs Available

✅ Available for Purchase and Refinance

✅ Cash-Out Refinance Available

Typical Qualification Requirements

 

 

✅ Minimum Credit Score (FICO): Typically 620+

✅ Minimum Down Payment: Typically 15%–30%

✅ Investment Property Only

✅ Rental Income Must Be Verifiable

✅ Foreign National Programs Available

⭐ Fast Closing in as Little as 5 Days ⭐

DSCR Refinance
for Investment Properties

Instant Pre-Approval

No Appraisal Required for Loan Amounts Under $400,000  

Read More

Milestone Point Inc. In partnership with Loan Factory Inc. (NMLS #320841)
Licensed Mortgage Loan Officer: Terry Kwon (NMLS #2620208)

Residential Mortgage Licensed: AL, CA, CO, GA, IL, ME, NJ, NV, OH, PA, TX, VA, WA

Contact: (631) 624-4480
Email: terry@milestonepointinc.com
Milestone Point, Inc: 200 Garden City Plaza, Suite 215, Garden City, NY 11530

Loan Factory: 2195 Tully Road. San Jose, CA 95122

 

Disclaimer:
Loan approval is not guaranteed. Approval is subject to credit, income, assets, and other underwriting criteria.
Rates and terms are subject to change without notice.
Milestone Point Inc. partners with Loan Factory Inc. to provide access to multiple mortgage products.
All mortgage programs are offered through licensed mortgage brokers/loan officers registered with the NMLS.