DSCR Loan Programs

Explore DSCR Options for Your Investment Property

You may qualify using cash flow from the subject property, with program options for different property types and investment scenarios.

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Up to $2.5 millionMax loan amount, DSCR 1-4 Units program

680Minimum FICO, DSCR 1-4 Units program

Up to 75%LTV, DSCR 5-9 Units program

About the Program

Debt Service Coverage Ratio (DSCR) financing is a collateral-based business purpose loan for real estate investors. Qualification is based on the DSCR, using cash flow from the subject property.

Traditional income verification is not required in the DSCR 1-4 Units program
First-time investors allowed in the DSCR 1-4 Units program
LLC borrowing allowed in the DSCR 1-4 Units and DSCR 5-9 Units programs

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How DSCR is described

Gross monthly rental income ÷ proposed [P]ITIA = Debt Service Coverage Ratio (DSCR)

Qualification uses cash flow from the subject property only.

Program Highlights

Review program-specific details for the 1-4 unit and 5-9 unit programs.

DSCR 1-4 Units

Investor Cash Flow

Collateral-based business purpose financing for real estate investors.

Loan amount up to $2.5 million
Minimum FICO 680
Up to 85% LTV on purchase, rate/term refinance, and cash-out
Cash-out up to $1 million; proceeds can be used for reserve requirements
Low or no ratio allowed
15-year fixed, 30-year fixed, 30-year fixed I/O, 5/6 ARM and 5/6 ARM I/O
SFR, PUD, townhomes, 2-4 units, condos, and non-warrantable condos
First-time investors allowed
LLC borrowing allowed
Sellers can pay up to 6% of the sales price in seller concessions toward the buyer’s closing costs and prepaids

DSCR 5-9 Units

Multifamily Property

A multi-family property program for business purpose borrowers.

Loan amounts up to $2.5 million, minimum loan amount $350,000
Maximum cash-out $500,000
LTV up to 75%; minimum 720 FICO
Minimum DSCR 1.15
Reserves 6 months PITIA on subject property only
LLC borrowing entity allowed
5/6 ARM, 5/6 ARM I/O, 30Y fixed, 30Y fixed I/O
Sellers can pay up to 3% of the sales price in seller concessions toward the buyer’s closing costs and prepaids

Who Qualifies

These programs are for real estate investors and investment properties. Eligibility varies by program.

Real Estate Investors

First-time investors are allowed under DSCR 1-4 Units.

Multifamily Investors

The DSCR 5-9 Units program covers multifamily investment properties.

LLC Borrowers

LLC borrowing is listed for DSCR 1-4 Units and DSCR 5-9 Units.

Program Guidelines

Terms vary by program. Confirm which program applies to the property and transaction.

Property Types

Program property types include investment properties, SFR, PUD, townhomes, 1-4 units, condos, non-warrantable condos, and 5-9 units.

Qualification and Ratios

DSCR 1-4 Units allows a low or no ratio. DSCR 5-9 Units has a minimum DSCR of 1.15.

Loan Terms and Features

Listed terms include fixed, interest-only, and ARM options, varying by program. Gift funds, asset utilization, and financed-property limits are also program-specific.

Loan Amounts and Credit

Loan amounts, FICO thresholds, and LTVs vary by program. Review each program card for its terms.

Explore Your DSCR Loan Options

Connect with Max Mortgage to discuss the program details for your investment property and transaction.

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