DSCR Loans - qualify based on property cash flow
Investment loans focused on rent-to-payment ratio, not your personal DTI
What is a DSCR loan?
Qualification based mainly on DSCR: gross rent/ PITIA
PROS
No personal DTI in many programs
Close in an LLC/entity (varies)
Works for long-term and some short-term rentals
CONSIDERATIONS
Larger down payment and reserves
Higher rates/costs than agency
DSCR minimums (often 1.0-1.2+) affect approval/pricing
BASIC ELIGIBILITY
Acceptable credit/reserves
Appraisal + rent schedule (1007)
DSCR meets investor minimums
CALIFORNIA NOTES
STR rules vary by city; permits may be required
Rent control/ordinances affect strategy/cash flow
Frequently Asked Questions
Some investors allow STR underwriting.
Often; we'll disclose terms.