The Overview of Standard DSCR Loan Programs

The Standard DSCR Loan Programs are designed for real estate investors who want simplicity, speed, and flexibility when financing rental properties. These loans are based solely on the income produced by the property—not on the borrower’s personal income or debts—which eliminates the paperwork headaches of traditional mortgages.

DSCR stands for Debt Service Coverage Ratio. It measures how well a property’s rental income covers its mortgage payments. If the rent covers the payment, you’re in business.

Whether you’re purchasing, refinancing, or pulling cash out of your property, Standard DSCR loans make the process fast and efficient, often closing in as little as three weeks.

Key Features of the Standard DSCR Loan Programs

• Loan Purposes: Purchase, rate/term refinance, and cash-out refinance.
• No Personal Income Verification: Borrowers qualify based on property cash flow.
• Fast Closings: Typical turnaround of ~3 weeks due to simplified underwriting.
• High Leverage: Up to 80% LTV depending on credit score and property type.
• Property Types: 1-8 unit residential properties, including short-term rentals.
• Loan Amounts: $100,000 up to $3,500,000 for standard loans, up to $2,000,000 for 5-8 unit properties.
• Loan Terms: Options include 40-year fully amortized terms.
• Ownership: Loans can close in an LLC for asset protection.
• Special Options: Blanket loans and partial release clauses for portfolio investors.

Who are Standard DSCR Loans For?

This program is ideal for:

1. Investors with Growing Portfolios