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DSCR Investor Mortgages

DSCR Investor Mortgages

A DSCR loan, or Debt Service Coverage Ratio loan, is an important financial tool for real estate investors. Unlike traditional mortgages that require extensive income documentation, DSCR loans are part of the non-qualified mortgage (non-QM) category. This makes them particularly appealing for those seeking rental property financing.

Key Characteristics of DSCR Loans:

1. Income-Based Qualification: The focus is on the cash flow generated by the rental property rather than personal income, it offers flexibility to investors with unconventional income streams.

2. Debt Service Coverage Ratio: Calculated by dividing the property’s annual gross rental income by its total annual debt obligations. A DSCR greater than 1 indicates positive cash flow, crucial for loan approval.

3. Differences from Traditional Mortgages:

No Tax Returns Required: Investors qualify based on projected rental income.

More Flexible Guidelines: Often allows multiple properties to be financed simultaneously.

In simple terms, the DSCR loan program helps investors by creating opportunities that traditional lending methods may not provide. It does this by using innovative structures to fill in financing gaps.

Why Loankea Is the Best Choice for Your DSCR Loans

Selecting the right lender for DSCR loan mortgage can significantly impact your investment success.

Why choose our DSCR?

Streamlined Qualification Process

No income verification required

No employment documentation needed

Simplified approval without DSCR calculations

Industry-Leading Features

DSCR requirements starting at 0

Rental income verification through Form 1007 only

Enhanced terms for DSCR above 1.25

Flexible minimum reserve requirement of 3 months

Cash-out refinancing up to 75% LTV

Acceptance of gift funds for down payment

We provide competitive rates and terms that match your investment goals, support all property types – from single homes to multi-unit buildings, focus on rental income potential instead of standard income proof, and our team helps you through the entire loan process.

We make DSCR loans work for both new and experienced investors. Our programs cover various properties and investment strategies. We understand real estate investing and deliver the right financing solutions.

DSCR Loans Requirements

These specialized investment property loans operate under distinct guidelines that differ significantly from traditional mortgage programs. Here are the main rules you need to follow:

Basic Eligibility Criteria

Credit Score Requirements

A minimum credit score of 620 is typically required

Higher credit scores may qualify for better interest rates and terms

Some lenders may consider scores down to 600 in exceptional cases

Down Payment Structure

Standard minimum down payment of 20% of the purchase price

Higher down payments often result in more favorable loan terms

Some programs may require up to 25-30% for certain property types

Required Documentation

Unlike traditional mortgages that focus on personal income verification, DSCR loans primarily require:

Current or projected lease agreements

Property financial statements

Rent roll documentation

Property insurance verification

Real estate tax assessments

Property appraisal reports

The approval process is simplified for seasoned investors by focusing on the property’s revenue potential instead of the borrower’s individual earnings during documentation.

Types of Eligible Properties

DSCR loan programs are geared towards income-generating properties. Common examples include:

Rental Units: Single-family homes, duplexes, triplexes, and larger multi-unit dwellings.
Commercial Real Estate: Office buildings, retail spaces, and other commercial properties capable of generating rental income.

This focus on cash flow from properties rather than personal earnings makes DSCR loans an attractive option for real estate investors seeking to expand their portfolios with minimal hassle.

What We Offer

Loankea’s DSCR loan programs are designed specifically for real estate investors who need adaptable financing options. We customize our options to match your investment goals and deliver clear solutions for your property financing needs.

Credit scores accepted for DSCR >1.25

No income verification required

Short-term rentals up to 80% CLTV

DSCR ratios as low as 0 accepted

Loans up to $3 million with $100,000 minimum

40- & 30-year fixed terms, 5/6 & 7/6 ARM options

Interest-only payments available

No limit on total financed properties

Foreign Nationals eligible under special program

Cash out up to $1,000,000 (varies by CLTV)
Gift funds accepted
Properties can be held in LLC, S corp, C corp, or trusts

Mixed-use and multi-family (5-8 units) eligible

Warrantable, non-warrantable condos and condo hotels allowed

Up to 6% seller concessions permitted

Airbnb/short-term rental income considered (AirDNA reports accepted)

Permanent and non-permanent residents eligible

These features make Loankea an ideal choice for real estate investors seeking efficient, flexible DSCR lending options with minimal documentation requirements and rapid approval processes.

Embrace the opportunities offered by our DSCR rental loan solutions and take your investment strategy to new heights.

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Customer Reviews

Philip L.

2 months ago

The purchase of our first home was more than successful thanks to Konstantin! His professionalism, care, and support at every stage made the process smooth and stress-free. Konstantin is a wonderful person to work with — very pleasant, attentive, and precise. Everything was handled quickly and accurately, without unnecessary “fluff,” which is so important when numbers are involved. He truly did everything in the best way possible. We are grateful for his work and happy to recommend him!

Yulia N.

1 month ago

Excellent specialists, they did everything quickly and took all our needs into account. Thank you so much for your professionalism, understanding, and help in buying a home. Without you, our dream of owning a house by the ocean would have remained just a dream. I recommend this team to everyone.

Stanislav T.

1 month ago

Konstantin made the impossible possible! After four failed attempts with others, he was the one who finally helped me complete my refinancing. It took six months — from April to October — and thanks to his persistence and professionalism, I was able to save over $90,000. I only wish I had found him earlier — it would have saved me so much time and stress. Truly grateful for his dedication and ability to get things done!

Got Questions?

Can I use potential income from a Short-Term Rental (like Airbnb) to qualify for a DSCR loan?

Yes, many specialized DSCR lenders now accept projected income from short-term rentals to qualify the loan. To do this, they typically require a professional short-term rental income analysis report (such as one generated by AirDNA or a similar platform) or the use of existing short-term rental history, rather than a traditional long-term lease agreement.

What types of property ownership entities are accepted for a DSCR loan?

DSCR loan programs are designed to facilitate investment, so they are highly flexible regarding ownership structure. Lenders commonly accept applications where the property will be owned by or transferred into an entity such as a Limited Liability Company (LLC), a Corporation (S corp or C corp), or a Trust, which provides significant liability protection benefits to the investor.

If my personal credit score is low, can the DSCR ratio still help me get approved?

The DSCR ratio, which evaluates the property’s cash flow, is the primary qualification metric, but the borrower’s personal credit score is still an essential factor. While a high DSCR may compensate for some minor credit issues, nearly all lenders require a minimum credit score (often 620-640) for program eligibility, and a higher score is necessary to unlock the most favorable rates and terms.

Do I have to personally guarantee a DSCR loan if the property is held in an LLC?

Yes, even if the property is held within an LLC or similar entity, the lender will almost always require the individual investor (the member or manager of the LLC) to sign a personal guarantee. This measure ensures that the borrower remains financially responsible for the loan, mitigating the lender’s risk since the loan is based on the cash flow of a single asset.

What is the process for verifying the rental income for a DSCR loan?

Verification is streamlined and typically relies on objective third-party data. For established properties, lenders use the current lease agreement or rent roll. For purchases without a tenant, they rely on a standardized appraisal form (Fannie Mae Form 1007), which provides a professional estimate of the market-rent value based on comparable rental properties in the area.