Providing Affordable Mortgages 

DSCR Loans (Debt Service Coverage Ratio)

DSCR Loans (Debt Service Coverage Ratio)

A debt service coverage (DSCR) loan is one that qualifies borrowers through an investment property’s cash flow rather than the borrower’s income. DSCR loans — also known as investor cash flow loans — are frequently used by real estate investors to qualify for mortgages and buy investment properties.

Mortgage lenders may use a borrower's cash flow to qualify them for a mortgage. This approach is known as cash flow underwriting, and it is typically used for borrowers who have non-traditional income sources or who are self-employed.

To qualify for a mortgage using cash flow underwriting, the lender will evaluate the borrower's income and expenses to determine their ability to make mortgage payments. The lender may consider a variety of income sources, including wages, self-employment income, rental income, and investment income. The lender will also consider the borrower's debts and expenses, including credit card payments, car loans, and other loans.

The lender will typically calculate the borrower's debt-to-income ratio (DTI), which compares the borrower's monthly debt payments to their monthly income. A lower DTI indicates that the borrower has more income available to make mortgage payments, while a higher DTI suggests that the borrower may have difficulty making mortgage payments.

Cash flow underwriting can be a useful tool for borrowers who have non-traditional income sources, but it may also result in higher interest rates or stricter lending requirements. Borrowers who are interested in using cash flow underwriting to qualify for a mortgage should work with a lender who has experience with this approach and can help guide them through the process.

  • LTV up to 80% for Purchase and R/T Refi and 70% for Cash-Out Refi
  • Available for 5-8 Unit Properties with LTV up to 70%
  • Close multiple loans for the same investor at the same time
  • No limit on the number of properties owned and can finance up to 10 properties for 1 investor
  • Industry-leading funding times
  • No limit on the number of properties owned and can finance up to 10 properties for 1 investor
  • Qualify on Interest Only Payments – Excellent for qualification and cashflow purposes, particularly with our 10-Year IO period on our 40-Year Term program
  • Non-Warrantable condos and Condotels allowed (up to 70% LTV)
  • FICO as low as 640
  • Rate buy-down feature available
  • Investor Cash Flow Loan (DSCR) Allows Property Investors To Grow Their Real Estate Portfolios.
  • No income or employment information required
  • Short-term rentals and VRBOs allowed
  • Properties can be in LLC's name
  • No limit on number of properties
  • 40 year fixed interest-only available
  • Non-warrantable condos allowed
  • Purchase, cash-out or rate-term refinance

Below are some states we offered DSCR loans (The list may change please contact Ferrari Lending to find out if we can originate in your state)

Alabama 

Alaska

Arizona 

California 

Colorado

Connecticut 

Delaware

Florida 

Georgia

Hawaii 

Illinois

Iowa

Kansas 

Kentucky

Louisiana 

Maryland

Massachusetts

Minnesota 

Missouri

New Jersey 

New Mexico 

New York 

North Carolina

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

Tennessee

Texas

Utah

Virginia

Washington

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I represent clients who authorize me to do so. I do not work for or represent the interest of any mortgage lender or other duly authorized entity to whom I may submit a mortgage application on behalf of a Client. My services are provided in a Mortgage Broker capacity and I am not authorized to approve or deny a mortgage loan request. NMLS 1691763 / NMLS 1322774