DSCR Investment Property Loans

DSCR means “Debt Service Coverage Ratio” which is the Monthly Gross Rental Income divided by the payment of the property.

Simply put I will qualify you based on the potential rental income from the property based on a rental survey by an Appraiser and NOT your income.

Experienced Investor – 20% down payment with a 660 min score

First-Time Investor – 25% down payment with a 680 min score.

Experienced Investor Definition  – At least one Applicant must be able to demonstrate a 12 month history of ownership and management of rental properties. It does not need to be have been in the most recent 3 year period. Commercial properties are acceptable for this purpose, as long as the Applicant was a majority owner of the property.

The property can even qualify you using short term ( i.e. AirBnb) rental income but you will need an extra 5% down payment

Interest Only is available with a minimum of 30% down.

Gift funds are allowed for funds to close. A 5% contribution of down payment and closing cost from Applicant’s own funds is required.

Full Interior / Exterior appraisal required. Appraisal Transfers from other Lenders is allowed under certain circumstances.

The borrower must disclose their employment information on the application. However, only rental income for the subject property is used in qualifying.

Eligible Borrowers: U.S. citizens • Permanent resident aliens • Non-Permanent Resident Alien

Housing History

  • A 12-month good housing history is required for borrower(s)’ primary residence, unless, the primary residence is owned free and clear.
  • Mortgage/rental history is required for all properties. If a borrower’s mortgage or rental history is not reported on the credit report, alternative documentation showing the most recent 12 months’ history (cancelled checks, mortgage/rental statements including payment history, verification of mortgage/rental, etc.) must be provided.

Min Loan Size is $150,000

No Reserves are required if Fico => 680, LTV/CLTV <= 65% and loan amount <= $1,000,000

Reserves Required for Fico < 680 or LTV/CLTV > 65% or loan amounts > $1,000,000

  • Loan amounts <= $1.5m: 2 months’ PITIA
  • Loan amounts > $1.5m: 6 months’ PITIA
  • Loan amounts > $2.5m: 12 months’ PITIA
  • Cash out proceeds may be used to meet the reserve requirement

Eligible: Single Family Residences1-4 Units, PUDs, Townhouses, Condominiums: Warrantable & Non-Warrantable

dan flag color

Dan Sherbondy
Senior Loan Officer
All Western Mortgage
(established in 1981)
“Dan The Loan Man”
702-326-7469 talk/text every day

Equal Housing Opportunity

Dan’s Licensing: NV MLD 45649, CA-DBO313289, CO-100516554  NMLS 313289
All Western Mortgage, 8345 W Sunset Rd Ste 380. Las Vegas, NV 89113
702-326-7469- TALK OR TEXT | | 702.369.0905 – Switchboard (Ask for Dan)

Company NMLS# 14210, NV Division of Mortgage Lending Lic# 204, Arizona Lic# 0923280, Licensed by the CA Dept of Corporations Lic# 603F053, CA Dept of Real Estate Lic# 01893025, CO Division of Real Estate, Florida Lic# MLD895, NM Financial Institutions Division Lic# 03619, UT Division of Real Estate Lic# 7776975,
OR Dept of Consumer & Business Services Lic# ML-4924, TX Dept of Savings and Mortgage Lending – Consumer Notice, WA State Dept of Financial Institutions Lic# CL-14210.