Acquire, refinance, or scale your investment property portfolio based strictly on the asset’s rental income. Zero W-2s, zero personal tax returns, and zero personal debt-to-income (DTI) limits.
Select your loan program below to load program-specific underwriting fields. We evaluate your numbers across multiple institutional non-QM credit boxes to structure optimal leverage and pricing.
Traditional conventional mortgages (Fannie Mae and Freddie Mac) penalize real estate investors for tax write-offs, depreciation schedules, and existing mortgage counts. A Debt-Service Coverage Ratio (DSCR) loan underwrites the investment property as a standalone income-producing asset. Below are the core parameters across our primary DSCR product tiers:
| Underwriting Parameter | DSCR Purchase | DSCR Rate & Term Refi | DSCR Cash-Out Refi |
|---|---|---|---|
| Maximum LTV / Leverage | Up to 80% LTV (20% Down) | Up to 80% LTV | Up to 75% LTV |
| Minimum Credit Score | 660 Minimum (680+ for 80% LTV) | 660 Minimum (Mid-FICO) | 660–680 (Tier-dependent) |
| Personal Income / Tax Docs | None (No W-2s, 1040s, or CPA letters) | None | None |
| Minimum DSCR Ratio | 1.00x Standard • 0.75x / No-Ratio available | 1.00x Standard • Sub-1.0x eligible | 1.00x–1.15x Standard • Sub-1.0x at lower LTV |
| Loan Terms & Amortization | 30-Yr Fixed, 40-Yr Fixed w/ 10-Yr Interest-Only, ARMs | 30-Yr Fixed, 40-Yr IO, 5/6 & 7/6 ARMs | 30-Yr Fixed, 40-Yr IO, 5/6 & 7/6 ARMs |
| Eligible Property Types | SFR, 2–4 Units, Townhomes, Warrantable & Non-Warrantable Condos | SFR, 2–4 Units, Condos, PUDs | SFR, 2–4 Units, Condos, PUDs |
| Borrowing Entity | LLC, Corporation, Limited Partnership, or Individual | LLC, Corp, LP, or Individual | LLC, Corp, LP, or Individual |
| Reserve Requirements | 3 to 6 Months PITIA (Retirement accounts eligible at 60%–70%) | 3 to 6 Months PITIA | 3 to 6 Months PITIA (Cash-out proceeds may satisfy reserves) |
A common misconception among investors is confusing commercial multifamily DSCR (which deducts utility bills, maintenance reserves, property management fees, and vacancy rates to find Net Operating Income) with 1–4 unit residential non-QM DSCR. In 1–4 unit residential underwriting, operating expenses are never deducted. The calculation is a direct ratio of gross rent to the monthly mortgage obligation:
Where Gross Rent is: The lesser of the executed lease agreement OR the independent appraiser’s Fair Market Rent Schedule (Fannie Mae Form 1007 for single-family / Form 1025 for 2–4 unit multi-family). On vacant purchases, 100% of the Form 1007 market rent is used.
In higher-price appreciation markets, standard 30-year principal-and-interest payments can compress your coverage ratio. Many of our DSCR programs allow you to qualify using the Interest-Only payment (ITIA) during the initial 10-year interest-only period (followed by 20 or 30 years of amortization), immediately increasing your qualifying ratio and unlocking higher leverage:
Your required DSCR loan down payment depends on the intersection of three variables: your property’s coverage ratio, your middle FICO credit score, and the property classification. We structure programs across three distinct coverage tiers:
Rental income exceeds monthly housing expenses by 20% to 25% or more.
Gross monthly rent equals or slightly exceeds total monthly PITIA debt service (100% coverage).
Designed for high-appreciation coastal/urban assets or properties with below-market legacy rents.
Standard banks routinely reject Airbnb, VRBO, and mid-term furnished rentals (travel nurse / corporate housing) because they lack a traditional 12-month residential lease. Our non-QM investor programs actively finance short-term and medium-term rentals across three flexible income verification methods:
For new STR purchases with no prior operating history, we can qualify the property using third-party AirDNA market revenue projections (typically applying an 80%–100% calculation factor in markets with an AirDNA Market Score of 60+).
For refinances or acquisitions of existing vacation rentals, we average the trailing 12 months of verified gross payouts directly from Airbnb, VRBO, or professional short-term property management statements.
Select programs allow the licensed appraiser to complete a specialized short-term/nightly comparable rent addendum alongside Form 1007 to validate seasonal vacation revenue.
If you locked in a 3% to 5% interest rate on an investment property in previous years, doing a full cash-out refinance on your first mortgage to pull out down payment funds for your next acquisition rarely makes mathematical sense. A standalone DSCR Second Mortgage solves this problem:
Investors executing the BRRRR Method (Buy, Rehab, Rent, Refinance, Repeat) often get trapped at Step 4 by conventional Fannie Mae rules, which enforce a strict 6- to 12-month title seasoning wait before recognizing your newly renovated appraised value.
At Quikhome Mortgage Lending, we bridge your entire lifecycle—originating the initial Fix & Flip Rehab Loan and transitioning directly into a short-seasoning DSCR cash-out refinance (0 to 3 months) once construction is complete, paying off your hard money bridge and pulling equity out based on the new After-Repair Value (ARV).
Because DSCR loans are commercial business-purpose mortgages, they typically include customizable prepayment penalty periods ranging from 0 years (No Prepay) to 5 years (structured as step-downs like 5-4-3-2-1 or 3-2-1).
Strategic Rate Control: If you plan to hold a rental long-term, selecting a 5-year step-down prepayment structure significantly lowers your interest rate. Conversely, if you plan to sell or refinance within 12 to 24 months, we can structure a 1-year, 2-year, or No-Prepay option to preserve total exit flexibility.
When you apply with a single-source direct lender or captive retail bank, you are restricted to one underwriting guideline book. If the appraiser’s Form 1007 rent comes back $75 short, or if the property is a non-warrantable condo or rural acreage, a captive lender has to decline the file.
We shop your deal across dozens of specialized wholesale non-QM investors to match your exact FICO, LTV, and property profile.
If an appraisal rent schedule comes in tighter than expected, we can pivot the file to a sub-1.0x or Interest-Only program without losing your deal.
While many lenders require 12+ months of landlord history, we offer dedicated first-time investor DSCR programs with competitive leverage.
Because personal income and employment are not underwritten, our document collection is fast and asset-focused:
The minimum down payment is 20% (80% LTV) on purchases for borrowers with a 680+ credit score and a property DSCR ratio of at least 1.00x to 1.20x. If the property has a sub-1.00x ratio or if you are utilizing a No-Ratio DSCR program, the typical down payment requirement is 25% to 30% (70%–75% LTV).
Yes. On purchase transactions—and many refinance programs—the property does not need an active tenant in place at closing. Underwriters use 100% of the fair market rent determined by the appraiser on Fannie Mae Form 1007 (or Form 1025 for 2–4 unit properties).
When closed in the name of an LLC or corporate entity, most business-purpose DSCR loans do not report to your personal credit profile (provided the loan remains in good standing). This keeps your personal debt-to-income ratio clean if you later apply for a conventional mortgage on a primary residence.
Yes. While certain wholesale tiers require 12 months of prior landlord experience, we work with multiple non-QM programs specifically allowing first-time investors to purchase rental properties with up to 75%–80% LTV, provided credit score and reserve guidelines are met.
No. DSCR loans are strictly business-purpose mortgages for non-owner-occupied investment properties only. Neither the borrower nor any family member may occupy the subject property (including units in a 2–4 unit building). For owner-occupied multi-unit "house hacking," explore our Conventional, FHA, or VA Loan Programs.
Read our introductory educational guide: Maximizing Your Investment Potential: Understanding DSCR Investor Loan Programs.
Submit your property numbers in our quote engine above or call our office directly at (540) 684-9250 to walk through your scenario.
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