Questions, answered plainly

A DSCR loan is a business-purpose mortgage for a non-owner-occupied rental property that qualifies mainly on the property’s rent compared with its monthly payment, instead of on your personal income documents.

Debt service coverage ratio. It is the property’s monthly rent divided by its monthly debt service: principal, interest, taxes, insurance and any HOA dues.

Each wholesale lender sets its own requirements, and the ratio is weighed alongside credit, leverage and reserves. In general, a ratio above 1.00 means the rent covers the payment, and more coverage tends to mean more options.

No. Pricing depends on your credit, the property, leverage, the ratio and market conditions, and it changes often. Our calculator lets you enter a rate you have been quoted or want to test, but we never suggest or advertise a rate.

No. We only arrange business-purpose loans for non-owner-occupied investment property. If you, a family member or anyone in your household will live there, even part-time, a DSCR loan through us is not an option.

Not if you will use it yourself. A home with any personal use is a second home, which is outside what we arrange. A short-term rental operated purely as a business can be a fit.

Single-family rentals, 2-4 unit properties, condos and townhomes, and short-term rentals, all as non-owner-occupied investments. Some wholesale lenders also consider other types; tell us about yours in the scenario builder.

Often, yes. Many DSCR programs allow an LLC or similar entity as the borrower, with the owners signing a personal guarantee. You will need formation documents, an operating agreement and an EIN letter.

Not necessarily. Some programs work with first-time investors and others prefer a track record. We compare wholesale lenders so you see the options that fit your experience.

Yes. Credit is reviewed as part of underwriting for every DSCR loan we arrange. Your scenario helps us understand the deal first; a credit authorization comes later in the process.

Usually identification, entity documents if you close in an LLC, asset statements for down payment and reserves, and property documents like leases, insurance, tax bills and HOA details. Our interactive checklist walks you through them.

Your checklist ticks are saved in your browser’s local storage on your device, and your scenario is kept for the current browser session so it can prefill the application. Nothing is sent to us until you submit the application form.

No. Submitting a scenario or application is not a commitment to lend. All loans are subject to underwriting and lender or investor approval, and terms are subject to change.

No. DSCR Loan App is a brand of Loan Daddy LLC, a licensed mortgage broker (NMLS #2827624). We arrange financing by shopping your scenario with wholesale lenders; the approving lender funds the loan.

DSCR Loan App is a Loan Daddy LLC brand, NMLS 2827624. Broker, not lender. NMLS #2827624. AZ CMB Licensed · #CMB-2016143. You can verify our NMLS record at nmlsconsumeraccess.org. See the licensing page for details.

Wholesale lenders treat the same deal differently. A broker can compare several programs at once and explain the trade-offs, instead of fitting your deal into a single lender’s box.