Investor Loan Program (DSCR)
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Oleksandra "Sasha" Palmer
Sr. Loan Officer NMLS1561169

Investor Loan Program (DSCR)
Our DSCR program is specifically designed to assist new and experienced real estate investors in financing their properties, qualifying based on the cash flow generated by the investment.
What is an Investor Loan Program (DSCR)?
An Investor Loan Program, specifically a Debt Service Coverage Ratio (DSCR) loan, is a type of loan used by real estate investors to finance the purchase of investment properties. The DSCR measures the property's ability to cover its debt obligations, such as mortgage payments, taxes, and insurance. Generally speaking, most lenders require a DSCR between 1 and 1.5 to qualify for a DSCR loan, with the most common minimum requirement being a DSCR of 1.25. We go as low as zero!
What are Investor Loan Program (DSCR) Requirements?
  • Program designed for Investment Occupancy Type ONLY
  • Requires a minimum down payment of 20%(restrictions apply)
  • Credit score as low as 620 (restrictions apply)
  • Borrower must have owned or currently own a residential property within the past 24 months
  • At least 20% of the down payment must be the borrower's own funds; any additional amount may be a gift, subject to documentation requirements. Funds not documented must "Season" in the borrower's account for 60 days before use in the transaction
  • Borrower must demonstrate reserves equivalent to three months' worth of the future all-in monthly payment for the property being purchased
  • Closing costs, including bank and title company services, government fees, transfer tax, appraisal, prepaid home insurance, and home tax, typically around 5-7% of the loan amount
  • Cash-out refinancing is available with this program
  • Condotels, mixed use, 5-8 units financing available with this program
What documents are needed for an Investment Loan (DSCR) pre-approval?
  • Copy of Driver License and Social Security Cards
  • Copy of both sides of the Green Card/Work Authorization Card
  • Most resent Mortgage & HOA Statements
  • 2023 Property Tax Bill
  • Insurance Declaration Page
  • Two most recent Bank Statements to document available funds for the down payment, reserves, and closing costs.
*Additional Documentation may be required
What are Investor Loan (DSCR) Limits?
The loan amount for our Investor Loan Program (DSCR) ranges from a minimum of $100,000 up to $3 million. This allows for flexibility in financing options, catering to a wide range of property values and borrower needs. Whether you're seeking a smaller loan for a single unit or a larger investment loan for multiple units, our program is designed to accommodate various financial scenarios.
What are Investor Loan (DSCR) Rates?

Investor Loan (DSCR) rates can vary depending on several factors, including the borrower's credit score, loan-to-value ratio, loan amount, and current market conditions. Generally, interest rates for Investor Loan (DSCR) may be higher compared to traditional mortgage rates, as they often involve a higher level of risk for the lender due to the alternative income verification method.
Typically, Investor Loan (DSCR) rates may be 1%-1.5% higher than rates for standard loan programs. However, it's essential to note that these rates are subject to change and may fluctuate until the loan is locked.
Conventional Loan vs Investor Loan (DSCR)
Conventional Loans and Investor Loans (Debt Service Coverage Ratio - DSCR) are two distinct mortgage options with unique characteristics and eligibility criteria.

Conventional Loan:

  • Typically necessitates a higher credit score, usually around 620 or higher
  • May entail private mortgage insurance (PMI) if the down payment is less than 20% of the home's purchase price
  • Provides various loan amounts and repayment periods for borrower flexibility

Investor Loan (DSCR):

  • Designed specifically for investors and property owners to assess the property's ability to cover debt obligations
  • Requires a Debt Service Coverage Ratio (DSCR) calculation, which measures the property's income against its debt obligations
  • Typically requires a higher down payment compared to Conventional Loans, often starting at 20%
In summary, Conventional Loans offer flexibility in terms of credit score requirements and repayment options, while Investor Loans (DSCR) cater to investors and property owners with specific income-generating properties. The choice between Conventional and Investor Loans depends on factors such as investment goals, property type, credit score, and individual financial circumstances.
Conventional Loan Rates vs Investor Loan (DSCR) rates
Conventional Loan Rates and Investor Loan (DSCR) rates denote the interest rates associated with two distinct types of mortgage loans.

Conventional Loan Rates:

  • The interest rates for Conventional Loans can fluctuate based on various factors such as the borrower's credit score, loan amount, and prevailing market conditions
  • These rates are influenced by broader economic factors like inflation rates and decisions made by the Federal Reserve
Investor Loan (DSCR) Rates:

  • The interest rates for Investor Loans (DSCR) may differ from Conventional Loans, often reflecting the risk associated with income-generating properties
  • These rates may vary depending on factors such as the borrower's creditworthiness, the property's cash flow, and the lender's assessment of risk
In summary, while Conventional Loan Rates are influenced by private lenders and broader economic conditions, Investor Loan (DSCR) Rates may be influenced by factors specific to income-generating properties and investor risk profiles.
Why choose my team & I?
  • #1. Transparency is paramount in your home buying journey. I ensure a clear understanding of the entire process, from application to closing, while Lending Capital Group INC guarantees straightforward communication, no hidden fees, and no surprises. You'll be well-informed and confident at every stage.
  • #2. Your dream home is within reach with our Low Down Payment Programs starting at 3%. I understand the importance of affordability, offering options that make securing your first home easier without straining your budget.
  • #3. Your financial well-being matters to me. At Lending Capital Group INC, we secure competitive interest rates, ensuring that you get the best possible terms and save money over the life of your mortgage.
Ready to turn your homeownership dreams into reality?
Contact me TODAY, and let me be your trusted partner as you take the exciting step into homeownership. Welcome home!
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