12 Frequently Asked Questions (And Answers) About DSCR Loans

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Robin SimonBusiness Member
Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
2w

Generally, the student housing is going to be Okay with most DSCR Lenders if its a traditional 12-month lease, ideally signed by one tenant. There are some concerns that college students are notorious for adding extra risk by potentially damaging properties more than other types of tenants, but its generally OK for students/college town markets, the true SRO (like padsplit) does remain an issue however for most lenders

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  • Curt Smith
    Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
    3y

    As a full timer with a bunch of mortgages I just don't care if I could possibly qualify for another fannie rental loan, the pain of closing another fannie rental loan is sooooo high vs another DSCR loan there's no reason for me. PLUS if you are low on personal income but have the cash or access to cash for the down then DSCR is the best and maybe only rental loan possibility for you. I did 4-6 DSCR REFI loans in the last 4 yrs. Very easy and cost, interest rates not much higher then fannie, even today.

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    • BiggerPockets TeamPro Member
      OP
      Member since 2026 · 14k+ posts · 4 votes
      2y

      May i ask who you went with for loans?

      Originally posted by Watch Out!.

      BiggerPockets
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  • Frank O.
    Little Rock, AR · Member since 2013 · 19 posts · 1 vote
    3y

    With the spike in interest rate hikes over the past year, DSCR or conventional loans neither interest or benefit me from a bottom line perspective/standpoint as a sub-to investor, but this info is good to know nonetheless.

    0Reply
  • Michaela W.
    Aspen, CO · Member since 2017 · 2 posts · 1 vote
    3y

    I see you can't do a DSCR loan to college students renting by room, but you can rent to college students in general, correct? Say a 4-Bedroom SF home in a college town, with 1 student (more likely their parent) on the lease, covering the rental rate? Are they allowed to sub-lease the other 3 rooms to lower rents their own or should I be concerned that if tenants sublease, my loan is in jeopardy?

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    • Damien CobbsPro Member
      Real Estate Investor · Chesterfield, VA · Member since 2009 · 11 posts · 0 votes
      2y

      I am wondering the same thing. Did you get an answer?

      0Reply
  • Robin SimonBusiness Member
    Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes
    2w

    Generally, the student housing is going to be Okay with most DSCR Lenders if its a traditional 12-month lease, ideally signed by one tenant. There are some concerns that college students are notorious for adding extra risk by potentially damaging properties more than other types of tenants, but its generally OK for students/college town markets, the true SRO (like padsplit) does remain an issue however for most lenders

    [email protected]
    Harpoon Capital514 Reviews
    WebsiteView Page
    1Reply
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