The DSCR Commercial Loan blog
Plain answers on commercial DSCR loans.
Guides for investors financing one- to four-family rentals: how lenders size a DSCR loan, what moves your rate, and how to refinance a flip or a portfolio.
Latest guides
Why don't DSCR loans require tax returns?
DSCR loans skip personal tax returns because federal Truth in Lending rules treat credit for a non-owner-occupied rental as business-purpose credit. The exemption ends if the owner expects to live there more than 14 days in the coming year.
Read the guideFix and flip to rentalHow soon can I refinance a flip into a DSCR loan?
DSCR lenders writing to their own guidelines set their own seasoning rules. The conventional benchmark is Fannie Mae's cash-out rule: six months on title, and any first mortgage being paid off at least 12 months old.
Read the guideDSCR basicsDSCR loan vs conventional loan for an investment property
A conventional investment property loan sold to Fannie Mae qualifies you on personal income and limits investment loans through DU to borrowers with up to 10 financed properties. A DSCR loan is business-purpose credit qualified mainly on the property's rent.
Read the guideDSCR basicsCan I live in one unit of my duplex or fourplex with a DSCR loan?
Usually not, because DSCR financing is built for rentals the owner does not occupy. Federal rules also treat an owner-occupied duplex differently from an owner-occupied triplex or fourplex.
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