PITIA = Principal, Interest, Taxes, Insurance & Association Fees
Qualify using the investment property’s cash flow
DSCR loans may be used for qualifying investment-property purchases and refinances without relying on the borrower’s personal employment income. Many programs do not require personal W-2s, paystubs or tax returns because qualification focuses primarily on the property’s eligible rental income relative to its housing expense.
Borrowers may be able to close in an eligible LLC or another approved business entity. Personal guarantees, entity documentation, credit, assets, reserves and other lender requirements may still apply.
Programs may consider long-term rentals and qualifying short-term rentals. The lender determines acceptable rental-income documentation, property eligibility and DSCR calculation. Loan amounts may be available up to $3,000,000 for qualified borrowers and properties, subject to program limits.
What to know
Eligible DSCR purchase and refinance programs generally qualify the investment property using its rental income relative to the property’s housing expense rather than the borrower’s employment income. Personal W-2s, paystubs and tax returns may not be required, but lenders still review credit, assets, reserves, the property and other program requirements.
Start with a conversation
Tell me where the property is, how you plan to use it and what you want the loan to accomplish. I can help you understand which details lenders will review and compare available paths.
What is a DSCR investment loan?
DSCR means debt service coverage ratio. These investor loans compare qualifying rental income with the property’s required housing expense. Personal income documents may not be required, but the lender still completes its required underwriting review.