Question 1

1. What is a DSCR loan?

Accepted Answer

A DSCR (Debt Service Coverage Ratio) loan is a real estate investor loan that qualifies based on the income produced by the property—not your personal W-2 income.

Question 2

2. Do I need personal income to qualify for a DSCR loan?

Accepted Answer

No. Qualification is based primarily on the property’s projected or current rental income.

Question 3

3. What types of properties qualify for DSCR financing?

Accepted Answer

Typically 1–4 unit residential properties, including long-term rentals and some short-term rental strategies.

Question 4

4. What credit score is required for a DSCR loan?

Accepted Answer

Requirements vary by lender, but most programs require a minimum credit score (often 620–680+).

Question 5

5. Can first-time investors qualify for DSCR loans?

Accepted Answer

In many cases, yes. However, strategy, down payment, and deal structure matter. We guide you through preparation before applying.

Question 6

6. How much down payment is required?

Accepted Answer

Down payments typically range from 20–25%, depending on LTV and program guidelines.

Question 7

7. Is there a prepayment penalty?

Accepted Answer

Many DSCR programs include prepayment penalties, but options vary. We review terms before you move forward.

Question 8

8. Do you pull credit immediately?

Accepted Answer

No hard credit pull occurs without your authorization.

FAQ

Frequently asked questions