DSCR Loans
Qualify on Your Property’s Rental Income, Not Your Tax Returns. Purchase and Cash-Out Refinance Financing for Investment Properties Nationwide. Have questions about financing? Call the CMAC Financing Assistant 24/7 at (917) 809-6595
Commercial Mortgage Acceptance Corp provides and arranges DSCR loans for real estate investors who want to qualify based on a property’s rental income rather than personal income. DSCR stands for debt service coverage ratio. It compares a property’s rent to its monthly mortgage payment, including taxes, insurance and any association dues.
Because the loan is underwritten on the property’s cash flow, there are no tax returns, W-2s or pay stubs required. Investors can purchase new rentals, refinance existing loans, or pull cash out of properties they already own to fund their next acquisition.
A DSCR loan is an investment property mortgage that qualifies based on the property's rental income instead of the borrower's personal income. The lender compares the property's rent to its monthly payment, including principal, interest, taxes, insurance and any association dues.
DSCR equals the property's monthly rent divided by its total monthly payment. For example, a property renting for $3,000 with a $2,500 monthly payment has a DSCR of 1.20. A higher ratio generally means better terms.
Many programs look for a DSCR of 1.0 or higher, meaning the rent covers the payment. CMAC can arrange programs that qualify properties with a DSCR as low as 0.75, depending on credit, leverage and the property.
No. DSCR loans do not require tax returns, W-2s or pay stubs. Qualification is based on the property's income, your credit and the loan-to-value, which makes DSCR financing popular with self-employed investors.
Yes. Investors often use DSCR cash-out refinances to pull equity from properties they own and fund their next purchase or renovation. CMAC can arrange cash-out refinances up to 75% of the property's appraised value.
Yes. DSCR loans can be closed in the name of an LLC or other business entity, which many investors prefer for liability protection and portfolio organization.
Yes. Depending on the program, DSCR loans can be used for short-term and vacation rentals, with qualifying income based on market rent data or the property's rental history.
Because there is no personal income documentation to review, DSCR loans often close faster than conventional mortgages. CMAC can close DSCR loans in as few as 10 days, depending on the appraisal and title.
Commercial Mortgage Acceptance Corp
40 Wall Street, 28th Floor #2868, New York, NY 10005
212-537-9200
