DSCR & Investor Loan Guide

DSCR and investor loan programs are designed for people who are building or optimizing a rental portfolio. Instead of focusing mainly on your personal debt-to-income ratio, they focus on how well each property’s income supports its own payment.

They may be a strong fit if you:

• Are buying or refinancing a non-owner-occupied 1–4 unit property.
• Prefer to qualify based on rental income and DSCR, not every line of your tax return.
• Are self-employed or have complex tax returns that show less income after write-offs.
• Want flexibility to hold properties in an LLC or other entity, subject to program rules.
• Have solid reserves and understand that investor loans often require more skin in the game.

DSCR and investor loans can be less ideal if you’re buying a primary residence, have very limited reserves, or are extremely rate-sensitive. In those cases, we’ll usually compare full-doc Conventional or other options side-by-side.

You don’t need to memorize these formulas. The key is understanding the directional impact: stronger credit, healthy DSCR, and real reserves usually open up better investor options.

These programs are built around investment properties, often with a lot of flexibility:

• Single-family rentals (detached homes).
• Condos & townhomes, subject to project and investor guidelines.
• 2–4 unit properties held as non-owner-occupied investments.
• Certain short-term rentals (Airbnb/VRBO style) with documented or projected income.
• Some programs consider properties in an LLC or corporation, subject to requirements.

These loans are typically for non-owner-occupied properties. If you plan to live in the home, we’ll likely consider primary residence programs instead—or in addition—depending on your goals.

You don’t need a perfect file to start. But these items help us move quickly and give you clear, investor-specific numbers:

• Property details – address (if known), price range, and property type (SFR, 2–4 unit, condo, STR, etc.).
• Rent data – current lease, projected rent, or market rent estimates we can cross-check.
• Snapshot of your portfolio – properties owned, balances, and approximate payments.
• Credit picture – estimated score range and any major past credit events.
• Reserves & liquidity – what you have set aside in savings, investments, and retirement accounts.
• Your investing game plan – buy-and-hold vs. BRRRR, target cash flow, and time horizon.

Want to pressure-test the numbers before we talk? You can use my mortgage & investor calculators to rough in estimated payment, cash flow, and DSCR based on different rates, rents, and down payments. They’re for estimates only — we’ll still build your final plan using live pricing and your full scenario.

The goal isn’t just “get a rental loan.” It’s to build a portfolio with margin—so the financing supports your life, not the other way around.

As you compare investor options, these questions help cut through the noise:

• How is DSCR being calculated for my deal? (What rent number and what’s included in the payment?)
• What’s my true all-in cost? (Rate, points, fees, and prepaids—not just the headline rate.)
• Is there a prepayment penalty? (If so, how long is it, and what happens if I sell or refinance early?)
• Is the loan interest-only or fully amortizing? (And how does that affect my long-term payoff and cash flow?)
• How does this compare to a full-doc Conventional investor option using my actual numbers?
• What happens if rents, taxes, or insurance change over time? (And how much margin do I have if they do?)

If you can answer those clearly, you’re not just buying a property—you’re running a business with eyes wide open.