Buying a rental property? Start with a financing plan.
Tell us about the property, the purchase price and the rent you expect. We will review your
DSCR purchase options and tell you exactly what is needed to move the transaction forward —
whether you are already under contract, making an offer this week, or still shopping.
What a DSCR purchase loan actually is
A DSCR loan qualifies on the property’s income rather than your personal tax
returns. For a purchase that means the lender looks at the rent the property earns, or the market
rent an appraiser supports if it is vacant, and measures it against the proposed payment. Your
own W-2s, personal returns and debt-to-income ratio are not the deciding factor.
That is why DSCR suits investors whose tax returns understate their real cash flow, who own
through an LLC, who are buying faster than conventional underwriting moves, or who already hold
enough financed properties that an agency lender has stopped saying yes.
DSCR purchase terms at a glance
- Loan amounts: $200,000 – $5,000,000+ (a loan at exactly $200,000 qualifies)
- Maximum LTV: up to 80% on a purchase
- Credit: 620+ minimum, 680+ for best pricing
- Income documentation: none — the lease or the appraiser’s market rent is used
- Structures: 30-year fixed, ARM, and interest-only options
- Ownership: individual, LLC, LP or corporation
- Property types: single family, 2–4 unit, condos, small multifamily, and
short-term rentals - Rate: quoted on your deal — rates move daily, so call for today’s rate
rather than trusting a number printed on a web page
The questions purchase borrowers actually ask
How much will I need to bring?
Plan on the down payment implied by the LTV above, plus closing costs, prepaid taxes and
insurance, and reserves. We will give you a written estimate of cash to close rather than a
rule of thumb.
How is the rent evaluated?
If the property is leased, the lease is the starting point. If it is vacant or being bought
from an owner-occupant, the appraiser’s market rent schedule is used instead. Short-term rental
income is evaluated differently again — tell us up front which one you have.
Can you lend on a vacant property, or one with no lease yet?
Often yes. A vacant property is not automatically a decline; it changes which rent figure is
used and can change the terms. Say so early so the file is built correctly the first time.
Can I buy through an LLC?
Yes, and most investors do, for liability and estate-planning reasons. Buying in an entity is
normal on DSCR and does not by itself change pricing.
What about taxes, insurance and dues?
Annual property taxes, insurance and any association dues are part of the payment the ratio is
measured against, so they affect whether a deal works — not just what it costs. Have those
figures, or an estimate, when you call.
What could stop this closing by my contract deadline?
In practice: an appraisal that comes in low or flags condition, a title or survey problem, an
insurance binder that arrives late, entity documents that have not been formed yet, or funds that
need to move from an account the lender has not yet seen. None of these is unusual and all of them
are faster to solve if raised in week one.
Requirements vary by programme. The figures above describe our DSCR purchase lending
generally; the specific terms you are offered depend on the property, the rent, your credit and
the structure you choose.
Where you are in the process
- Already under contract — send the executed contract and the property address
and we will work to your deadline. - Making an offer — we will tell you what the financing supports before you
commit to a price. - Still shopping — give us a target market and a price range and we will tell
you what the numbers need to look like for a deal to work.
Call 888-727-3057 or start a file. Already own rentals
and want to refinance instead? See DSCR refinance options, a
cash-out refinance, or
paying off a hard money loan.