Buy an investment property
DSCR Purchase Loans for Rental Properties
Request a DSCR purchase loan quote for an eligible non-owner-occupied rental property using the property’s qualifying rent and complete investor scenario.
Financing a rental property purchase with a DSCR loan
A DSCR purchase loan can help an investor acquire an eligible rental property without using a conventional owner-occupied mortgage structure. The lender reviews the purchase price, appraised value, expected or documented rent, proposed loan amount, property type, credit profile, liquidity, and the complete business-purpose transaction.
Purchase priceStart with the contract price and expected value.
Monthly rentProvide the lease, expected rent, or available market-rent information.
Requested loanShare the down payment and loan amount you are targeting.
Property types commonly reviewed
- Single-family rental properties.
- Condominiums and townhomes that meet project and program requirements.
- Two-to-four-unit residential investment properties.
- Eligible short-term rental properties.
- Other residential investment-property types supported by the selected program.
What can affect a DSCR purchase quote
Pricing and eligibility can be influenced by the property’s coverage ratio, credit range, loan-to-value ratio, property type, number of financed properties, reserves, prepayment structure, occupancy status, state, and documentation quality. A quote is only as accurate as the scenario information provided.
Prepare before the contract deadline
Have the purchase contract, entity information, estimated rent, insurance estimate, property tax information, association dues, and available-funds plan ready. Early scenario review can help identify potential property, leverage, rent, or documentation issues before appraisal and underwriting.
Frequently asked questions
Can a first-time investor use a DSCR purchase loan?
Some programs can consider first-time investors, while others apply additional experience, reserve, credit, or leverage requirements.
How is rent determined on a vacant purchase?
Programs may use appraisal market rent, an executed lease, or another approved method. The accepted approach depends on the program and property.
Can the property be my primary residence later?
DSCR loans on this site are business-purpose investment-property financing. The subject property must remain non-owner-occupied as required by the loan documents and applicable program.
Can I request a quote before I have a property address?
A general discussion can begin, but a meaningful property-specific quote normally requires an address, property type, price or value, expected rent, requested loan amount, and credit range.
Talk through the rental property numbers.
Call the NonQM123 DSCR Desk or send the scenario online for a business-purpose investment-property review. Program availability and terms depend on the complete scenario and underwriting approval.
Business-Purpose Investment Financing
This DSCR website presents financing intended for eligible non-owner-occupied investment properties and business purposes only. The subject property may not be occupied by the borrower or the borrower’s family when prohibited by the applicable loan program. Loan proceeds may not be used for personal, family, or household purposes.
- Non-owner-occupied investment property
- Business-purpose loan proceeds only
- Subject to underwriting and state restrictions
Program availability, occupancy requirements, loan terms, and eligibility are subject to underwriting guidelines, property review, credit approval, state restrictions, and lender approval.