What is a DSCR Loan?

• No Personal Income Verification: Qualification is based on the property’s rental income, not the borrower’s income.
• Fast and Flexible: Simplified documentation speeds up approval, helping investors close deals quickly.
• Unlimited Properties: Use DSCR loans to finance multiple investment properties, with no limit on the number of loans you can have.
• Cash Flow Focus: Approval depends on whether the property generates enough income to cover its mortgage, taxes, and insurance.
• Short- and Long-Term Options: DSCR loans offer flexible terms, including fixed-rate and adjustable-rate options.
• No Tax Returns Required: Ideal for self-employed investors or those with complex finances.

The Debt Service Coverage Ratio (DSCR) is calculated as:
DSCR = Net Operating Income (NOI) ÷ Debt Obligations (Mortgage Payments)

For example:

• If the rental income is $3,000/month and the mortgage payment (principal, interest, taxes, and insurance) is $2,500/month:
  DSCR = $3,000 ÷ $2,500 = 1.2

A DSCR of 1.0 or higher is typically required, meaning the property generates enough income to cover its debt.

• Real estate investors seeking to finance residential or commercial rental properties.
• Borrowers looking to refinance investment properties for better terms or to access equity.
• Self-employed or non-traditional borrowers who prefer not to document personal income.

1. Down Payment: Typically 20-30%, depending on the loan terms and property type.
2. Credit Score Requirements: Minimum score requirements vary but usually start around 620-680.
3. Eligible Properties: Single-family homes, multi-family units, condos, and commercial real estate.
4. Loan Limits: High loan amounts are available to meet investors’ needs.

At Millennia Mortgage Group, we understand the unique needs of real estate investors. Our team will:

• Assess your property’s cash flow potential and tailor the best loan option for your goals.
• Offer competitive rates and terms to maximize your investment returns.
• Simplify the process with fast approvals and minimal paperwork.