Do I need to show income for a DSCR loan?

No employment or tax-return income is required. The property's rent qualifies the loan, along with your credit score, down payment and reserves.

What ratio do lenders want?

1.25 or higher opens up the most competitive pricing. Many lenders go down to 1.00, and a few offer programs below 1.00 with a larger down payment or higher rate.

Can I close in an LLC?

Usually yes. DSCR loans commonly allow vesting in an LLC, which conventional investor loans do not.

Are DSCR rates higher?

Yes, typically a point or more above owner-occupied rates, with prepayment penalties on some programs. Frank compares the options and explains the trade-offs.

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Does this rental qualify for a DSCR loan?

DSCR loans qualify the property, not your tax returns. If the rent covers the payment, the deal usually works. Run the ratio here.

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Questions people ask

Do I need to show income for a DSCR loan?: No employment or tax-return income is required. The property's rent qualifies the loan, along with your credit score, down payment and reserves.
What ratio do lenders want?: 1.25 or higher opens up the most competitive pricing. Many lenders go down to 1.00, and a few offer programs below 1.00 with a larger down payment or higher rate.
Can I close in an LLC?: Usually yes. DSCR loans commonly allow vesting in an LLC, which conventional investor loans do not.
Are DSCR rates higher?: Yes, typically a point or more above owner-occupied rates, with prepayment penalties on some programs. Frank compares the options and explains the trade-offs.

Does this rental qualify for a DSCR loan?

Questions people ask

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