All Forum Posts by: Stacy Raskin

DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment and market or actual rents not off of your personal income.

More details:

• Loans available for purchase, cash-out and rate & term refinance
• 85% LTV for single family purchase only with a minimum middle credit score of 720. Purchase price up to $1.5M. DSCR ratio of 1.2 and must have previous real estate investor experience.
• Loan amounts up to $1,500,000. Minimum loan amount $100,000.
• LTV are up to 75% for cash out.
• Non-warrantable condos and condotels permitted.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Single family home purchases that will be short term rentals can be structured off of AirDNA with a 20% expense factor- for this program only no first time investors. For this product only DSCR ratio must be 1.2 or above. An example for easy math, is the rent would have to be $1,200 or above if the mortgage, property taxes and insurance (and HOA if applicable) would be $1,000 or below.
• Additional program for 2-4 units can be structured off of short term rentals with additional requirements. Minimum 700 credit score, 25% minimum down payment with 1 year short term rental history required. 30% down payment is required with no short term rental history. Minimum 1.25 DSCR based on AirDNA rentalizer. Please contact for additional details.
• Qualify on Interest Only payment which is great for cash flow. 10 year interest only payments converting to 30 years principal and interest. Fully amortized fixed interest loan.

I work on DSCR loans in all U.S. states except for Arizona, Idaho, Iowa, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota and Utah. There are different products available depending on the state. Please inquire. I look forward to hearing from you.

DSCR loans are a great way to supercharge your investment goals and net worth. Depending on the loan program, the mortgage will only be qualified off of your middle credit FICO credit score, down payment and market or actual rents.

More details:

• Loans available for cash-out
• Credits score down to 620
• LTV are up to 75% for cash out.
• Cash out limits depend on property value, credit score and if the property is vacant.
• Non-warrantable condos and condotels permitted.
• Rate buydown feature available.
• DSCR (lower of gross rent lease or Form 1007/216 rent divided by PITIA) as low as 1.0x.
• Short term rentals can be structured off of 12 month short term rental history.
• Inquire for additional details.

I work on DSCR loans in all U.S. states except for Arizona, Idaho, Iowa, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota and Utah. I look forward to hearing from you.

I work with lenders that will help finance investment properties. There's usually a 20% minimum down payment but it will get you in the door. 

I work with clients across the country and it really comes down to working with someone who is knowledgeable, client oriented and is able to offer you the products you're looking whether it's DSCR loans or owner occupied loans. Also rates are usually more competitive when working with a broker as they're partnering with wholesale lenders that can often have more competitive fees, rates and loan options. Many banks and local lenders only feel comfortable with certain types of loans. Or so my clients have told me.

If you're looking for any assistance on the lending side, DSCR loans can be helpful:

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Here's a bit more in detail about how rates are calculated for DSCR loans:

1. Credit score- the higher the best. 760+ generally gets best pricing for investment property loans with most lenders

2. Loan to value ratio: The higher the loan to value ratio (LTV) is, pricing takes a hit. So your pricing will be higher for a 80% LTV loan than for a 60% LTV loan.

3. Prepayment penalties- usually 1-5 year terms. The shorter the prepayment term has an impact on increasing the rate.

4. Are you cash flowing the property? Is your DSCR ratio greater than 1-meaning are you cash flowing. Many lenders will not do a DSCR loan unless cash flowing. If they will do a loan with less than 1, the pricing takes a hit.

I've included an example below to help illustrate this.

So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.

See example below:

DSCR < 1

Principal + Interest = $1,700

Taxes = $350, Insurance = $100, Association Dues = $50

Total PITIA = $2200

Rent = $2000

DSCR = Rent/PITIA = 2000/2200 = 0.91

Since the DSCR is 0.91, we know the expenses are greater than the income of the property.

DSCR >1

Principal + Interest = $1,500

Taxes = $250, Insurance = $100, Association Dues = $25

Total PITIA = $1875 Rent = $2300

DSCR = Rent/PITIA = 2300/1875 = 1.23

DSCR lenders generally let you vest either individually or as an LLC. It's a great way to increase your net worth and these loans can also be used to pull cash out of a property as it appreciates allowing you to reinvest money into new deals.

Are you looking to buy a primary home or an investment property? There are different programs depending...

Depending on the deal and the experience and credit score of the borrower, there are lenders do 12 month interest only loans that flippers use that are 11-12% and up with 2-4 points and up depending on the loan amount. 

There are lenders that will do DSCR loans without owning your primary home or an investment property.

@David Sohn, I work with lenders who will work with people newer to fix and flips. Especially if your partner has construction experience. 

@Asia Bribiesca-Hedin, there are lenders that will structure the loan off of your assets so it will be a low document loan. I'll send you a message as well.