DSCR Rental Property Loans
Financing for income-producing rental property, underwritten primarily on what the property earns rather than on personal income documentation.
How it works
DSCR stands for debt service coverage ratio — the property net operating income divided by its total debt service. A ratio above 1.0 means the property produces more income than it costs to carry. Because the loan is sized against that ratio, the underwriting conversation centers on rent rolls, leases and operating expenses rather than tax returns and W-2s.
Who it is for
Investors building or refinancing a rental portfolio, and self-employed borrowers whose tax returns do not reflect their actual capacity to carry debt. It is also a common takeout for a fix and flip that the owner decides to hold and rent instead of sell.
What we look at
Current and market rents, lease status and tenant quality, operating expenses, property condition, and the equity position. Because the property carries the loan, the quality and durability of that income stream is the main question.
What we do not lend on
We do not lend on 1–4 unit owner-occupied residential property. Our lending is for investment and commercial real estate.