DSCR loans allow you to grow your portfolio beyond the number of properties your personal income can support using conventional loans. The rates are slightly higher so if your income isn’t yet maxxed out servicing other properties, it’s probably better to go for a conventional loan.

To be eligible you need:

A credit score of at least 660.
Your total annual rent should cover your principal, interest, insurance, property taxes and HOA fees (if applicable).
To have paid either mortgage payments or rent for at least 12 months.
An LTV less than or equal to 80%
Reserves to cover 6 months’ worth of payments.
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