Looking for Construction-to-Permanent DSCR Loan for Owner-Occupied Duplex (Atlanta, G

Member since 2025 · 2 posts · 1 vote

Hi BP community,
I’m in the Atlanta, Georgia market and planning to build a duplex where I’ll live in one unit and rent out the other. I’m trying to find out if there are any lenders that offer a construction-to-permanent loan based on DSCR (Debt Service Coverage Ratio) for this kind of setup.
Most DSCR loans I see are for investment properties after completion, but I’m hoping there’s a way to apply it to an owner-occupied new build while renting out the other side.
If anyone knows of lenders that offer this type of loan, or has gone through a similar process, I’d really appreciate any advice or recommendations. Thanks!

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Jason WrayPro Member

Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes

Fred,

DSCR is for investment only you cannot use it for primary homes. If you are going to move out and can list the property as intended use "Investment rental" it can be done. Keep in mind they will want to see a rental situation set up and verify because the underwriters are trained to look out for this type of situation.

If you do not have income like W2 or 2 years of 1099 SE to show you are not going to be able to get a "Construction/Renovation" loan done. DSCR or Debt Service Coverage Ratio is used for investment rentals and commercial loans so that you can show the rents are equal to or greater than the PITI or ITI payment.

My advice would be to use a cosigner family, friend or business partner to help satisfy the income/DTI ratios, if you cannot use your own income. If not move out and use a DSCR refinance to take out some cash if you have equity and do the renovations with the funds.

[email protected]727-637-4289

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Jason WrayPro Member
Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
1y
Fred,

DSCR is for investment only you cannot use it for primary homes. If you are going to move out and can list the property as intended use "Investment rental" it can be done. Keep in mind they will want to see a rental situation set up and verify because the underwriters are trained to look out for this type of situation.

If you do not have income like W2 or 2 years of 1099 SE to show you are not going to be able to get a "Construction/Renovation" loan done. DSCR or Debt Service Coverage Ratio is used for investment rentals and commercial loans so that you can show the rents are equal to or greater than the PITI or ITI payment.

My advice would be to use a cosigner family, friend or business partner to help satisfy the income/DTI ratios, if you cannot use your own income. If not move out and use a DSCR refinance to take out some cash if you have equity and do the renovations with the funds.
[email protected]727-637-4289
1 Reply
Josh Bowser
Real Estate Agent · Atlanta, GA · Member since 2020 · 416 posts · 233 votes
1y
^ Jason is spot on
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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Fred Ambitious:

Hi BP community,
I’m in the Atlanta, Georgia market and planning to build a duplex where I’ll live in one unit and rent out the other. I’m trying to find out if there are any lenders that offer a construction-to-permanent loan based on DSCR (Debt Service Coverage Ratio) for this kind of setup.
Most DSCR loans I see are for investment properties after completion, but I’m hoping there’s a way to apply it to an owner-occupied new build while renting out the other side.
If anyone knows of lenders that offer this type of loan, or has gone through a similar process, I’d really appreciate any advice or recommendations. Thanks!

As mentioned this does not exist but what we have done is if someone uses us for the construction loan we give a 1% discount if we also provide the DSCR loan.
7e investments53 Reviews
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Fred Ambitious
OP
Member since 2025 · 2 posts · 1 vote
1y
Thanks Jason, I appreciate you breaking that down for me. That makes sense I’ll start looking at some other options based on what you suggested. Thanks again for taking the time to explain it!
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