Our Debt Service Coverage Ratio (DSCR) loan program has been updated with new guidelines designed to give investors more options when financing or refinancing rental properties.
Key Program Updates
1. Vacant Properties Now Eligible
- Refinances: Vacant 1–4 unit properties are allowed with a maximum 70% LTV/CLTV.
- 2–4 Units: If at least one unit has a tenant, the 70% LTV limit no longer applies.
- Purchases: No LTV restrictions for vacant property purchases.
This gives investors more options when acquiring or refinancing properties that are not fully occupied.
2. Month-to-Month Leases Now Accepted
- Leases that have transitioned from fixed-term agreements to month-to-month status are now eligible under DSCR guidelines.
- This allows investors to qualify even if tenants choose not to sign long-term leases.
3. New Lease Flexibility
- For rental income calculations, new leases are no longer required to be in the seller’s name.
- This makes the transition of income documentation smoother during property acquisitions.
4. For Foreign Nationals
- Borrowers must have a U.S. bank account established prior to clear-to-close.
- This ensures a streamlined closing process and simplified loan servicing.
Contact our team to see how these new DSCR guidelines can work for you.
