If you’re building a rental portfolio, Debt Service Coverage Ratio (DSCR) loans let the property’s cash flow—not W-2s—do the heavy lifting. Our DSCR program is designed for 1–8 unit residential investors who want simple docs, flexible terms, and clear underwriting.

Quick Program Snapshot

• Property types: 1–8 units (SFR, 2–8 unit small multifamily)

• Min FICO: 660 (recommended 680+)

• Min DSCR: 0.80 (recommended 1.15 for best pricing & smoother approvals)

• Max LTV: up to 80% (single-family), 75% (2–8 units)

• Foreign Nationals: max 65% LTV

• Rates: start at 5.88%

• Rate options: 30-yr fixed, 5/1 & 7/1 ARM, Interest-Only (up to 10 yrs I/O)

• Minimum loan amount: $100,000 (100k per unit guidance for multi-units)

How DSCR Works (Plain English)

DSCR = Monthly Rent ÷ Monthly Payment (PITIA)

• PITIA = Principal + Interest + Taxes + Insurance + HOA (if any).

• 1.00 DSCR means the rent exactly covers the payment.

• We can go down to 0.80 DSCR (tighter leverage/pricing), but you’ll get the most efficient execution at 1.15+.

Quick math examples

• If your total monthly payment (PITIA) is $2,000:

  • Minimum to qualify at 0.80 DSCR: $1,600 rent

  • Recommended at 1.15 DSCR: $2,300 rent

• For a 4-unit where PITIA totals $5,500:

  • Minimum at 0.80 DSCR: $4,400 gross rents

  • Recommended at 1.15 DSCR: $6,325 gross rents

Leverage & Terms (What to Expect)

• Single-Family (1-unit): up to 80% LTV at strong DSCR and credit tiers.

• 2–8 Units: up to 75% LTV, with DSCR and FICO driving best-case pricing.

• Foreign Nationals: up to 65% LTV; same DSCR logic applies.

• Fixed or ARM: Lock long-term cash flow with a 30-year fixed or choose 5/1 or 7/1 ARM for initial payment efficiency.

• Interest-Only (I/O): Take up to 10 years of I/O to maximize monthly cash flow during rehabs, lease-ups, or cap-ex plans.

Who This Program Fits

• Buy & Hold investors scaling SFR or small-multi portfolios.

• BRRRR operators who’ve stabilized and want permanent debt.

• Out-of-state owners who value streamlined documentation.

• Foreign Nationals investing in U.S. residential rentals.

How to Strengthen Your File (and Potentially Your Pricing)

• Target 1.15+ DSCR: Consider minor rent bumps (at renewal) or tax/insurance shopping to improve DSCR.

• Credit polish: Aim for 680+ FICO to unlock better tiers.

• Right-size leverage: Choose LTV that keeps DSCR healthy with today’s rates (starting at 5.88%).

• Document cleanly: Current lease(s), insurance quote, tax bill, HOA (if any), and a simple REO schedule speed things up.

Fast FAQs

Q: Can I qualify if my DSCR is under 1.00?
A: Yes—minimum is 0.80 DSCR with adjusted terms. For best results and pricing, 1.15+ is preferred.

Q: What if I’m buying a 6-unit?
A: Max 75% LTV applies for 2–8 units. Keep total gross rents high enough to meet your target DSCR.

Q: Do you offer long-term fixed rates?
A: Yes—30-year fixed options are available, as well as 5/1 & 7/1 ARMs and I/O up to 10 years.

Q: Foreign National here—what’s my cap?
A: 65% LTV maximum, with the same DSCR framework.

Next Steps

• Buying or refinancing? Send the address, rents (or market rent expectations), taxes/insurance, and your target LTV.

• Want numbers first? Ask for a soft quote—we’ll show you DSCR, payment scenarios (fixed vs. ARM vs. I/O), and max leverage based on your credit tier.

Ready to run your deal? Reply to this newsletter with your property details or upload your loan scenario on LoanFunders.com to get started.

Disclaimer: Program terms, guidelines, and pricing are subject to change without notice and may vary by scenario. This is not a commitment to lend. All loans subject to underwriting and applicable regulations.