All loan programs
Quick answer
- Who it may fit
- Investors buying or refinancing rental property
- Down payment
- Cash to close depends on the program, the property and your file — we quote your scenario before you apply.
- Main benefit
- Qualifying centers on the property's cash flow
- Main tradeoff
- Rates and fees are typically higher than owner-occupied financing
Debt service coverage ratio loans measure the property's rental income against the payment on the loan. Personal income is often not part of the calculation, which makes these useful for investors expanding a portfolio beyond what personal debt-to-income would allow.
- Investors buying or refinancing rental property
- Owners of multiple financed properties
- Buyers of small multifamily or short-term rental property, where the program permits it
- Qualifying centers on the property's cash flow
- Vesting in an entity is commonly permitted
- Portfolio growth is not constrained by personal debt-to-income in the same way
- Rates and fees are typically higher than owner-occupied financing
- Larger down payments and reserves are generally expected
- Prepayment penalties are common on this product class
- Coverage-ratio requirements and short-term-rental treatment vary by lender
These are the factors an underwriter typically reviews. They are not a checklist of requirements, and meeting them does not guarantee eligibility or approval.
- A rental cash-flow calculation meeting the lender's coverage requirement
- Credit review, and reserves appropriate to the program
- An eligible non-owner-occupied property with a supporting rent analysis
- Entity documentation where the loan is vested in an LLC
All loans are subject to credit, income, property and underwriting approval. Nothing on this page is a loan offer, an approval, a rate lock or a commitment to lend. Programs, rates and terms are subject to change without notice.