First Equity Home Loan, Inc.
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Who Uses Investor DSCR Loans and Why?

Investor Debt Service Coverage Ratio (DSCR) loans are a powerhouse for real estate investors building portfolios without the headaches of traditional underwriting. These Non-QM programs qualify you based on the property's rental income and cash flow (DSCR ratio of 1.0+ typically required), not your personal taxes or W-2s. Say goodbye to submitting years of tax returns—focus on the asset's performance to unlock financing for flips, rentals, or expansions.

Ideal Borrowers:

  • Rental Property Investors: Scaling multi-family or single-family portfolios? DSCR loans let you leverage property NOI (net operating income) for qualification, ideal if personal DTI is high from other investments.
  • Short-Term Rental Owners (e.g., Airbnb hosts): Platforms like VRBO provide income docs to prove cash flow, bypassing personal income scrutiny.
  • Land and Rural Investors: Up to 20 acres allowed, with flexible terms for development or agricultural-adjacent properties.
  • Portfolio Builders: High-net-worth individuals or syndicators seeking interest-only options to maximize cash-on-cash returns (though we advise against over-relying on IO for long-term stability
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Why Investors Love DSCR Loans:

Key Benefits

  • No Tax Return Hassle: Qualify purely on the investment property's projected or actual rents—perfect for those with complex tax situations or depreciation write-offs that tank traditional apps.
  • Cash Flow Focus: Lenders calculate DSCR as rental income divided by PITIA (principal, interest, taxes, insurance, association fees), ensuring the property "pays for itself."
  • Flexible Terms: Gift funds OK (std. DSCR), no personal debt ratios (DSCR Max), and higher credit scores unlock premium rates, LTVs, and add-ons like rural acreage.
  • Portfolio Growth Accelerator: In a market where investors hold 20%+ of US single-family homes, these loans fuel acquisitions without personal financial deep dives.

At MTG Quote, our Investor DSCR programs cater to your strategy—whether aggressive scaling or conservative holds. Compare our two options below and get a custom quote to see how your properties stack up.

Program Comparison: Kind DSCR vs. DSCR Max

Feature

DSCR

DSCR Max

Max Loan Amount

Up to $3,000,000

Up to $2,000,000

Purchase/Rate-Term LTV

Up to 85%

Up to 80%

Cash-Out LTV

Up to 75%

Up to 75%

Min Credit Score

620

640

Debt Ratio

Considered (up to 50% DTI)

No personal debt ratio required

Gift Funds

Allowed

Allowed (standard)

Property Types

Short-term rentals, up to 20 acres, rural OK (LTV reductions case-by-case)

Rural up to 20 acres permitted

Interest-Only Option

Available (not recommended)

Available (not recommended)

Best For

Flexible entry for lower scores; higher limits

Streamlined for strong-credit investors; no DTI hassle

*Note: Higher FICOs (e.g., 700+) qualify for better rates, higher LTVs, and expanded options across both programs. All loans are Non-QM, generally close quicker than traditional qualified mortgages due to less documentation and sometime quicker approvals.

Ready to supercharge your investments? 

Our specialists will run your property's DSCR for free—apply today and turn cash flow into equity!

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First Equity Home Loan, Inc.

Company NMLS# 204659

First Equity Home Loan, Inc.