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Rental and vacation property
Grow your portfolio with DSCR loans that skip the tax returns, or conventional rental loans when the numbers favor them. Long-term rentals, vacation rentals, and 2 to 4 unit properties.
A DSCR loan approves you based on whether the property's rent covers its mortgage payment, instead of your personal income or tax returns. DSCR stands for debt service coverage ratio.
A ratio of 1.00 means the rent exactly covers principal, interest, taxes, insurance, and HOA dues. Many programs approve at 1.00, and 1.20 to 1.25 or higher usually earns better pricing. Some programs even allow ratios below 1.00 with a larger down payment.
Choose conventional when your tax returns show strong income and you own fewer than ten financed properties; it usually has the lower rate. Choose DSCR when write-offs reduce your taxable income, you are self-employed, or you want to close in an LLC.
Yes. Many DSCR programs accept short-term rental income from an appraiser's market rent analysis or the property's booking history, which works well in Orange Beach, Gulf Shores, Fort Morgan, Dauphin Island, Perdido Key, and Pensacola Beach.
Condos need extra care. Some beachfront buildings are considered non-warrantable because of investor concentration, rental desks, or pending litigation, and coastal wind insurance can change the DSCR math significantly. Brian's background as an inspector and insurance agent helps you price both before you commit.
Yes. A cash-out refinance on a rental can fund your next down payment. It is a common way to repeat the buy, renovate, rent, refinance cycle.
DSCR cash-out refinances often allow up to about 70% to 75% of the appraised value, depending on the ratio and your credit score.
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DSCR = monthly rent divided by principal, interest, taxes, insurance, and HOA (PITIA). Estimates only; lenders may use an appraiser's rent schedule and their own vacancy factors.
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Questions people ask
No. DSCR loans qualify based on the property's income, so you typically do not provide tax returns, W-2s, or pay stubs. Your credit, down payment, and reserves still matter.
Yes. Most DSCR programs allow you to take title in an LLC, which many investors prefer for liability protection. You usually sign a personal guarantee.
Conventional loans cap most investors at ten financed properties. DSCR loans generally have no limit on how many properties you own.
Not always. Some DSCR programs accept first-time investors, sometimes with a slightly larger down payment or a higher minimum ratio.
A ratio of 1.25 or higher is considered strong and usually earns the best pricing. Between 1.00 and 1.25 qualifies with many programs, and below 1.00 may still work with more money down.
Send the address and the rent, and Brian will compare DSCR and conventional pricing for you.
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Fixed-rate loans with as little as 3% down for first-time buyers.
Learn more →Veterans$0 down and no monthly mortgage insurance for those who served.
Learn more →Rural and suburban$0 down in eligible areas for moderate-income households.
Learn more →Home equityBorrow against your equity and keep your current mortgage rate.
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