DSCR Loan Programs
DSCR purchase loans finance eligible investment-property purchases primarily using the property's rental income and cash flow.
DSCR purchase programs may be available with down payments as low as 20% and up to 80% LTV for qualifying investment properties. Programs may also be available down to 0.75 DSCR, starting around 620–640 FICO, and for loan amounts of approximately $75,000 to $5,000,000+. These are program-availability parameters, not universal requirements or guarantees.
Investors commonly begin with the property itself: projected rent, recurring expenses, purchase price, and financing objective. A lender reviews these details alongside the applicable program requirements.
Up to 80% LTV and down payments as low as 20% may be available for qualifying purchase scenarios. Maximum LTV and qualification can depend on property type, value, rental strategy, DSCR, credit profile, loan amount, reserves, documentation, lender, and program.
DSCR generally compares qualifying rental income with qualifying property expense. Programs may be available down to 0.75 DSCR, but the calculation, eligible inputs, and minimums vary by lender and loan program. An estimate is a starting point rather than a decision.
First-time home buyers and first-time real estate investors may be eligible for select DSCR purchase programs. Prior homeownership is generally not required. Select programs may also allow eligible gift funds toward the required down payment. Program availability, eligibility, and requirements vary by lender and program.
DSCR loans for first-time home buyers Foreign national DSCR loansSelect DSCR purchase programs may allow a seller gift of equity to satisfy the required equity contribution. At 80% LTV, a 20% seller gift of equity may allow the buyer to complete the required down payment without using their own cash for the down payment. This is not 100% financing. The required equity is supplied by the seller through the gift of equity. Final eligibility, seller eligibility, valuation, documentation, reserves, and underwriting requirements depend on the applicable lender and program.
Learn more about DSCR gift of equity and gift-fund optionsPrepare your property details
Organize the property type, location, occupancy, estimated rent, purchase price, and requested loan amount.
Review the estimated rental income and recurring property expenses that may be part of a lender's analysis.
A lender verifies program availability, documentation, eligibility, pricing, and final terms for the specific request.
This page is for educational purposes only and does not constitute a loan offer, approval, commitment, or guarantee. Program availability, eligibility, underwriting requirements, qualifying calculations, pricing, terms, and documentation vary by lender and program.
