Free Investor Guide
Want to Buy Rental Property Without Relying on Traditional Personal-Income Qualification?
DSCR financing looks first at the rental property’s cash flow. This free guide explains how these programs generally work, what the AFN team reviews, and how to prepare for your next investment purchase.
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What’s inside the guide
- How rental property cash flow may be used to qualify instead of traditional personal-income documentation
- What a Debt Service Coverage Ratio is, in plain language
- The property details typically reviewed on a DSCR scenario
- Why some investors buy in an LLC or other entity, where eligible
- How purchase, refinance and cash-out scenarios are generally approached
- Documents commonly requested, so you can prepare ahead
- Questions worth asking before you make an offer on a rental
- Experience
- 25 years in lending
- To get the guide
- Instant download
- Licensed lender
- Company NMLS #237341
DSCR Financing Was Built for Real Estate Investors
Property Cash Flow
DSCR programs center on whether the rental income supports the payment on the property, subject to program guidelines.
Investor Focused
Built for buy-and-hold investors rather than for owner-occupied borrowers, so the review looks different from a conventional loan.
Flexible Ownership
Holding title in an LLC or other entity may be available on eligible DSCR programs, subject to lender requirements.
What Does DSCR Mean?
DSCR stands for Debt Service Coverage Ratio. It compares the rental income a property produces with the qualifying payment on the loan. When the property carries itself under the program’s guidelines, personal income documentation typically plays a smaller role than it does on a conventional loan. Requirements vary by program and are subject to lender requirements.
The idea
Rental Income
divided by
Qualifying Payment
The qualifying payment generally includes principal, interest, taxes, insurance and any HOA dues. Minimum requirements differ by program.
Is This Guide for You?
You're buying your first rental
You want to understand how investor financing is reviewed before you make an offer.
You're growing a portfolio
You may have reached the financed-property limits typical of agency lending.
Your income is complex
You are self-employed or have income that traditional documentation does not represent well.
You want to buy in an entity
You would prefer to hold the property in an LLC rather than in your personal name, where eligible.
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