Debt Service Coverage Ratio Loans

DSCR Loans

A limited documenation loan, the DSCR product uses the income and expenses associated with the subject property. This product is for investors only and a good solution for a self employed borrower or one that has a credit history that may eliminate them from qualifying for a conforming loan. 

Current Guidelines:
  • Borrower Type: US citizens and Permanent Resident Aliens. LLC with personal guarantee.
  • Debt Service Coverage Ratio (DSCR): Rental Income divided by PITIA Rental Income Verification:
  • Lower of Gross Rent lease or Form 1007/216
  • Purchase: Market rents FNMA form 1007 for SFR & FNMA 216 for multi-units
  • Refinance: Market rents or lease with cancelled checks for 2 months
  • Minimum DSCR: 1.25X
  • Experience Review: First time investor must own primary residence for 12 months & Max LTV 65%

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