New: 40-Year Fixed DSCR (10 Years Interest-Only, 30 Years Fixed)

Looking for the lowest monthly payment while you stabilize—or planning to sell/refi in a few years? Our new 40-year fixed DSCR option gives you 10 years Interest-Only followed by 30 years fixed amortization. It’s built for investors who want payment flexibility up front without chasing an ARM.

Who it’s for

  • Buy-and-hold investors who want maximum cash-flow cushion in years 1–10

  • Value-add buyers who plan to rehab, lease up, then refi/sell

  • Anyone who prefers a fixed rate (no ARM resets) but still wants IO runway

How the payment works (quick example)

Illustrative math @ 5.88% on a $400,000 loan; your file will vary.

  • 30-yr fixed (no IO): ≈ $2,367/mo

  • 40-yr fixed with IO (years 1–10): ≈ $1,960/mo

That’s roughly $407/mo lower vs a traditional 30-year during the IO period. (Payments exclude taxes/insurance/HOA.)

Why investors choose it

  • Lower payment now → better DSCR cushion while you execute your plan

  • Fixed rate the whole way (no ARM surprises)

  • Clear exits: sell anytime or refi into best-available pricing once stabilized

What to keep in mind (straight talk)

  • Slower principal paydown: IO means more total interest over time.

  • Step-up after year 10: payment rises when amortization kicks in.

  • Guidelines still apply: DSCR minimums, FICO, LTV caps, and standard prepay structures for DSCR loans.

Program basics (high level)

  • Loan type: DSCR, 40-yr fixed total term

  • Structure: 10 years Interest-Only, then 30 years fixed amortization

  • Rates: market-based; DSCR pricing improves with stronger files

  • General DSCR guidelines: Min FICO 660 (680+ recommended), Min DSCR 1.00 (1.15+ ideal), Max LTV typically 80% SFR / 75% 2–8 units / 65% Foreign National

Ready for numbers on your property?

Send address, current/market rent(s), taxes/insurance/HOA, target LTV and AIV. I’ll reply personally with a one-page scenario that compares 30-yr and 40-yr with IO, plus DSCR and payment side-by-side—so you can pick the path that fits your plan.

Call 718-635-2377, reply or email george@loanfunders.com to get a same-day soft quote.

Business-purpose loans only. Not a commitment to lend. Terms, rates, and guidelines subject to change and approval.