FAQ

No. No 1040s, W-2s, pay stubs, profit and loss statements, employment verification, or 4506-C transcript requests. The property's rent against its PITIA is the income test, plus your credit and reserves.

620 is the market floor and 660 to 680 is the practical minimum at most lenders. Best pricing and 80% leverage begin at 720. Below 620, DSCR is generally unavailable and hard money or a bank-statement product is the realistic path.

Sub-1.0 programs cover roughly 0.75 to 0.99 at a rate adjustment and lower leverage. Below that, a no-ratio program waives the calculation entirely in exchange for 680+ FICO, 70% LTV, and twelve months of reserves.

Usually yes, with conditions: 700+ FICO, DSCR above 1.00, a one-unit property, no credit events in 36 months, and existing ownership of a primary residence. Some lenders waive the last requirement; many do not.

No program cap. Individual lenders set per-borrower exposure limits, commonly five to ten loans or $2M to $5M in aggregate, which is why a growing portfolio is spread across multiple capital sources by design rather than by accident.

20% minimum on a purchase, with 25% the pricing sweet spot. Cash-out refinances cap at 70–75% LTV. Foreign nationals should plan on 30–35%. Five-to-eight unit multifamily typically requires 25–30%.

Generally by 50 to 150 basis points, though the gap narrows once conventional investment-property price adjustments are applied. Compare complete quotes rather than headline rates — see DSCR vs conventional.

Two to three months of PITIA on a clean purchase, six on a cash-out or short-term rental, nine to twelve on no-ratio, foreign national, or loans above $1.5M. Funds must be seasoned 30 to 60 days.

Usually. Most DSCR notes carry a three-to-five year step-down. No-penalty pricing is available for roughly 50 to 125 basis points, and several states restrict penalties on 1–4 unit investor loans entirely.

Origination of 0 to 2 points, appraisal of $650 to $2,500 depending on property type, title and settlement, recording and transfer taxes where applicable, and prepaid taxes and insurance. Budget 2 to 4% of the loan amount as a working figure.

Yes. Income comes from twelve months of platform statements or a market projection, discounted 15 to 25%. The threshold question is whether short-term rental is legal at that address — bring the permit. See STR loans.

Not on DSCR. Anything rated C5 or C6 for condition is ineligible. That deal needs rehab financing first, then a DSCR refinance once it is habitable and leased.

Warrantable condos on standard terms. Non-warrantable condos and condotels through a narrower lender pool at 65 to 70% LTV. Order the condo questionnaire in week one — it is the most common late-stage surprise.

Yes, on commercial-grade DSCR at 70 to 75% LTV. Underwriting shifts to a narrative appraisal and an income approach, and non-recourse becomes available at some lenders. See multifamily.

No. DSCR is a business-purpose loan on non-owner-occupied property. Occupying it breaches the note and can trigger acceleration. If you intend to live there, you need a consumer mortgage product.

Ten to twenty-one days from a clean file. The appraisal is the critical path — on a tenant-occupied property, arrange access the day you go under contract.

Yes, and most clients do. You will need articles, a fully executed operating agreement with amendments, an EIN letter, and a certificate of good standing within 60 days. Members at 20% or more sign a personal guarantee.

Not for a term sheet. Send the scenario and your approximate score band and we will price it. Credit is pulled at formal application.

Yes — mobile notary, remote online notarization where the jurisdiction permits, or consular signing for borrowers outside the US. Confirm the accepted method early, as it shapes the final week.

The appraisal, in two forms: a value below contract price, or a Form 1007 market rent below the in-place lease. After that, insurance premiums coming in far above the seller's, and unsourced deposits disqualifying reserves.