DSCR Direct

While most DSCR loans require a down payment, there are creative financing structures that can effectively get you into an investment property with little to no money out of pocket. Cross-collateralization allows you to use equity from an existing property to secure a new DSCR loan, potentially eliminating the need for a cash down payment. Blanket loans across multiple properties and seller financing combined with DSCR refinance strategies are also options.

We specialize in creative financing for investment properties. Reach out with your scenario and we'll find a solution that works.

Yes. Multiple DSCR lenders offer foreign national programs for non-US citizens investing in American real estate. These programs typically require a larger down payment (25-30%) and may have slightly higher rates, but they do not require a US credit score, SSN, or tax history. Foreign national DSCR loans qualify based on the property's rental income just like standard DSCR loans.

Foreign national programs vary by lender. Contact us with your details for the best available options.

Yes - and it's actually the most common way DSCR loans are structured. Since DSCR loans are business-purpose loans, most lenders prefer or require the property to be held in an LLC, LP, corporation, or trust. This provides liability protection for the investor while keeping the loan off personal credit. You can close directly in the entity name.

Yes. Many DSCR lenders have specific short-term rental (STR) programs that use projected Airbnb or VRBO income from platforms like AirDNA to calculate the DSCR ratio instead of traditional long-term rental comps. STR DSCR loans often support higher property values in vacation and tourist markets where short-term rental income significantly exceeds long-term rental rates.

STR program availability and income calculations vary. Send us your scenario for STR-specific pricing.

Yes. DSCR loans are available to borrowers with past bankruptcy, foreclosure, short sale, or deed-in-lieu events. Seasoning requirements are typically 2-4 years from discharge or completion. Programs with shorter seasoning periods are also available at adjusted rates and LTV limits.

Tell us your situation and we'll find the best available program.

Yes. DSCR loans are available for non-warrantable condos. Condos that don't meet Fannie Mae or Freddie Mac warrantability requirements - due to investor concentration, single-entity ownership, litigation, or HOA budget issues - qualify for DSCR financing. We have multiple lenders with dedicated non-warrantable condo programs at competitive rates.

Yes. Many DSCR programs offer interest-only (IO) payment options, typically for the first 5 or 10 years of the loan. Interest-only payments significantly lower your monthly obligation, which can improve your DSCR ratio and cash flow. This is popular with investors who plan to hold the property short-to-medium term or who want to maximize cash-on-cash returns.

DSCR loans do not have the Fannie Mae / Freddie Mac 10-property financed limit that applies to conventional loans. You can have as many DSCR loans as you qualify for - there is no cap on the number of properties. Each loan is underwritten independently based on that property's cash flow. This makes DSCR the go-to product for investors scaling a portfolio beyond 10 properties.

Yes - this is one of the most common uses of DSCR loans. Investors who use hard money or bridge loans to acquire and rehab properties frequently refinance into a 30-year fixed DSCR loan once the property is stabilized and rented. The DSCR cash-out refinance can also pull out your rehab costs, giving you capital for the next deal (the BRRRR strategy).

Yes. DSCR loans do not require prior real estate investment experience. Since qualification is based on the property's rental income rather than the borrower's personal income or portfolio track record, first-time investors can qualify just as easily as experienced ones. You just need to meet the FICO, LTV, and DSCR ratio requirements.

Yes. DSCR loans do not require the property to have existing tenants or rental history. The appraiser provides a market rent estimate as part of the appraisal, and that projected rent is used to calculate the DSCR ratio. This applies to new construction, recently renovated properties, and vacant properties being purchased as rentals.

Yes. DSCR loans are available for mixed-use properties, including residential units above commercial space. We have lenders with dedicated mixed-use programs that finance these properties at competitive rates. Whether your property is primarily residential with a ground-floor commercial unit or a more even split, we can find the right program for you.

Yes. Unlike conventional loans, which are subject to Fannie Mae's 10-financed-property limit, DSCR loans have no such restriction. Whether you have 10, 50, or 100+ properties, you can continue financing new acquisitions with DSCR loans. Each property is evaluated independently on its own cash flow, so your existing portfolio size is not a barrier.

Yes. DSCR loans are available for 5+ unit apartment buildings and small multifamily commercial properties. We have lenders with dedicated 5+ unit programs that finance these properties with DSCR-based underwriting, so qualification is still based on the property's rental income rather than your personal income.

Reach out with your property details for available options and pricing.

Yes. No-prepayment-penalty DSCR loans are available, particularly on purchase transactions. Rates will be slightly higher compared to loans with a 3 or 5-year prepay term, since the lender doesn't have the guaranteed payoff period. This is a good option for investors who plan to sell or refinance within a few years and don't want to be locked in.

Yes. DSCR loans are available for rural properties with no location restrictions. As long as the property can support a market rent appraisal, it qualifies. Properties in small towns, agricultural areas, and remote locations are all eligible. The appraiser will determine the market rent for the area, and that figure is used to calculate the DSCR ratio.

We do every loan program. Whether it's a unique property type, non-standard borrower situation, or a deal structure that doesn't fit the typical mold, we will find a solution. Cross-collateralization, blanket loans, portfolio lending, bridge-to-DSCR strategies, foreign national programs, low DSCR, no prepay, small balance, jumbo - we have it all.

Email us your scenario at info@dscrdirect.net - same-day responses.