Investor Financing · DSCR

DSCR Investment Property Loans

Flexible financing designed for real estate investors using property cash flow instead of traditional income documentation.

Short-term rentals, multifamily, mixed-use, and long-term rental financing options available — closed in your name or your LLC.

Quick Answer

In one paragraph

A DSCR loan uses the property's rental income to help qualify instead of relying heavily on personal income documentation. No tax returns, no W-2s, no employment verification — underwriting focuses on the asset's cash flow, your credit, and your reserves. It is built for investors scaling a portfolio without the friction of traditional income docs.

Key Parameters

The core numbers

Baseline guidelines for standard DSCR scenarios. Specialty property types and borrower profiles have tighter overlays — outlined further down the page.

Loan Amount
$100K – $3MM
Min $100,000 · Max $3,000,000
Max CLTV
80%
Up to 80% combined loan-to-value
Minimum FICO
620
Best pricing at 680+ and again at 720+
Eligible Property Types

What you can finance

From single-family rentals to short-term rentals, mixed-use, and small multifamily — DSCR financing is built around how investors actually own real estate.

Single Family Residence (SFR)
Townhome
Warrantable Condo
Non-Warrantable Condo
Condotel
Max CLTV 75%
2–4 Unit Properties
Planned Unit Development (PUD)
Rural SFR
Min FICO 680
Short-Term Rentals
Airbnb / VRBO eligible
Leasehold
Mixed Use
Max CLTV 75% · Min FICO 700 · Min loan $400K · DSCR ≥ 1.1
Multifamily
Max CLTV 75% · Min FICO 700 · Min loan $400K · DSCR ≥ 1.1
State Restrictions

Where this program operates

A clear, compliance-first view of state-level eligibility.

Ineligible States
  • Alaska
  • Illinois
  • New York
New Jersey Overlays
Purchase
Max CLTV 70%
Min FICO 720
Refinance
Max CLTV 65%
Min FICO 720
Borrower Eligibility

Who can qualify

  • US Citizens
  • Permanent Residents
  • Non-Permanent Residents
  • ITIN Borrowers
  • First-Time Homebuyers allowed

For Foreign National financing, see FN DSCR program options — Bryan can match you to the right wholesale investor.

ITIN Borrower Guidelines

Specific overlays

Minimum FICO
700
Maximum CLTV
70%
Maximum Loan Amount
$1.5MM
Minimum DSCR
≥ 1.00
DSCR & Income

How the math actually works

The Formula
DSCR = Gross Rental Income ÷ Proposed PITIA

PITIA = Principal + Interest + Taxes + Insurance + Association dues. A DSCR of 1.20 means rent covers 120% of the full payment.

Rent
$2,400
PITIA
$2,000
DSCR
1.20
DSCR ≥ 1.00
Standard pricing tier. Borrower income may not be required.
DSCR 0.75 – 1.00
Allowed with min 680 FICO. Cash-out capped at 70%.
DSCR < 0.75
Allowed with min 680 FICO. Cash-out capped at 65%.

On most files, borrower income is not required at all. Where it matters, Bryan structures the property's qualifying rent using the highest valid method between lease, market rent appraisal (1007/1025), and short-term-rental operator data.

Reserve Requirements

Liquidity after closing

Reserves are months of PITIA you need to document as remaining after closing.

Loan ≤ $1MM
3 months
of PITIA reserves
$1MM – $2MM
6 months
of PITIA reserves
> $2MM
12 months
of PITIA reserves
Mixed Use / Multifamily
6 months
of PITIA reserves
Credit & Tradelines

How underwriters read your file

Tradelines

Standard expectation: 3 tradelines reporting for 12+ months, or 2 tradelines reporting for 24+ months. Authorized-user accounts are reviewed but not relied upon.

Representative Score

Middle of three bureaus per borrower; lower of two on a multi-borrower file. The representative score drives pricing tier and overlay eligibility.

Mortgage History

Most programs allow 0x30 in the last 12 months. Recent late payments are reviewed in context and may impact pricing rather than eligibility.

Major Credit Events

Bankruptcy, foreclosure, short sale, and deed-in-lieu are evaluated by seasoning. Most programs require 36 months seasoning at standard pricing; shorter seasoning is possible at reduced leverage.

Assets & Cash-Out

Funding the deal

Asset Seasoning

Funds for down payment and reserves are typically expected to season 30 days in a documented account.

Gift Funds

Eligible from family members with a standard gift letter and documented sourcing/transfer trail.

Overseas Assets

Allowed when held in an established institution and translated/converted to USD with documentation acceptable to underwriting.

1031 Exchange

Eligible. Coordination with your qualified intermediary is built into the closing timeline.

Delayed Financing

Available within program guidelines. Pricing typically aligns with rate/term tier when properly documented.

Cash-Out Restrictions

DSCR <1.00 caps cash-out at 70%; DSCR <0.75 caps cash-out at 65%. Texas-specific cash-out rules apply where relevant.

Additional Requirements

Structure, title, and product detail

Vesting accepted in an individual name, revocable living trust, or qualifying entity (LLC, LP, S-Corp). Personal guarantee from beneficial owners is required when closed in an entity.

Bryan's Expert Insight

Investor financing is strategy-driven.

The structure of the loan matters just as much as the property itself. DSCR financing allows experienced and newer investors to scale more efficiently when structured correctly — the right entity, the right amortization, the right reserves, and the right exit.

— Bryan Jones, Senior Mortgage Broker at NEXA Lending

Frequently Asked

Investor questions, direct answers

A DSCR (Debt-Service Coverage Ratio) loan is a mortgage for real estate investors that qualifies based on the property's rental income — not the borrower's W-2 or tax returns. If the property's gross rent comfortably covers the proposed payment (principal, interest, taxes, insurance, and association dues), the file can qualify.

Investor Financing

Build your next investment strategy with better financing options.

Live wholesale pricing, a clean DSCR structure, and a broker who answers his own phone. Get a real number on your next deal in 24–48 hours.

Text Bryan