DSCR
DSCR
DSCR is a loan program designed for financing investment properties with a Debt Service Coverage Ratio (DSCR) of 1.0 or higher. This product offers flexible terms for purchases, rate & term refinances, and cash-out transactions for business purposes only.
Eligibility:
Loan amounts up to $3,000,000 for purchases and $2,500,000 for cash-out.
Minimum FICO: 660, with higher DSCR requirements for FICO scores between 660-679.
Maximum LTV: 80% for purchases, reduced by 5% for interest-only loans.
Investment properties only, with strict borrower and property restrictions (e.g., no foreign nationals, agricultural zoning, or short-term rentals).
Wide range of product terms, including ARMs, fixed-rate, and interest-only options.
Benefits:
Allows for delayed financing up to six months after purchase.
Accommodates high loan amounts with competitive LTV and DSCR requirements.
Suitable for borrowers with prior credit events, subject to a 7-year seasoning period.
Considerations:
Minimum loan amount: $100,000 (or $175,000 for DSCR <1.0). Maximum cash-out limited to $500,000.
Business assets cannot be used as reserves. Requires full appraisals for loans exceeding $2,000,000 on refinances.
Non-warrantable condos, properties with deed restrictions, and solar panels with UCC filings are ineligible.
