Program Overview
Key Features
- DSCR below 0.75 eligible
- Lower LTV caps for risk adjustment
- Manual underwriting required
- Clear exit strategy documentation
- Higher reserve requirements
- Experienced borrowers preferred
Eligible Property Types
- Single Family
- Townhome
- 2-4 Units
Business Purpose Only
Business-purpose loans only. Manual underwriting required for all applications.
Eligibility Requirements
Minimum FICO
Credit score requirement
Maximum LTV
Loan-to-value ratio
Cash Flow Based
No tax returns needed
Program Guidelines
For properties with DSCR below 0.75. Requires lower LTV, higher FICO, and substantial reserves.
Rates & Terms
| LTV | FICO | Rate | Points | Prepayment |
|---|---|---|---|---|
| 70% | 740+ | 7.750% | 0.50 | 5/4/3/2/1 |
| 70% | 680-739 | 8.000% | 0.50 | 5/4/3/2/1 |
| 75% | 760+ | 7.875% | 0.75 | 5/4/3/2/1 |
Note: Rates shown are starting rates and may vary based on property type, location, and borrower qualifications. Prepayment penalties apply as shown. Business purpose loans only.
Calculate Your Scenario
DSCR Calculator
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Results
Recommendations
- You qualify for our best rates and terms
- Consider higher LTV options up to 80%
Understanding DSCR
≥ 1.25
Strong DSCR. Qualifies for best rates and highest LTV options up to 80%.
1.0 - 1.24
Acceptable DSCR. May qualify with adjusted terms or lower LTV.
0.75 - 0.99
Consider no-ratio DSCR program or property improvements.
Frequently Asked Questions
When would I use No-Ratio DSCR?
For value-add properties, lease-up scenarios, or properties where market rent exceeds current income.
What are the reserve requirements?
Typically 6-12 months PITIA in reserves, depending on experience and property type.