Investor DSCR Loans (1–8 Units)
Qualify for your next rental property based on cash flow, not your personal income. Our DSCR programs offer high leverage up to 85% LTV and allow you to scale your portfolio beyond conventional limits without W-2s or tax returns.
Investor DSCR Loans for Scaling Portfolios
In 2026, real estate investors are increasingly moving away from restrictive conventional financing. Our Debt Service Coverage Ratio (DSCR) loans prioritize the property’s performance over the borrower’s personal debt-to-income (DTI) ratio. This "business purpose" approach allows you to secure financing quickly and scale your portfolio without the burden of traditional income verification.
How DSCR Loans Work
The DSCR model offers a transparent, objective way to qualify for investment properties. Instead of reviewing pay stubs or tax returns, we use one elegant calculation:
$DSCR = \frac{\text{Gross Monthly Rental Income}}{\text{Monthly Housing Expense (PITIA)}}$
- DSCR $\ge$ 1.00: The property's income covers its debt.
- DSCR > 1.25: Unlocks premium pricing and higher leverage.
No-Ratio Options: Available for select deals where credit and property value are the primary drivers.
Key Features and Benefits
No Personal Income Verification:
No W-2s, tax returns, or employment checks required.
High Leverage:
Up to 85% LTV for 1–4 unit properties.
Multifamily Support:
Specialized programs for 5–8 unit properties up to 2 million.
Super Jumbo Capacity:
Financing available for luxury rentals up to 3M+.
LLC Vesting:
Close in the name of an entity for added protection and tax efficiency.
Unlimited Scale:
Bypass the 10-property limit imposed by conventional lenders.
Who This Loan Is Best For
Portfolio Landlords:
Investors who have reached conventional loan caps and need to keep growing.
Professional Investors:
Those using "BRRRR" strategies or managing short-term Airbnb/VRBO rentals.
Business Owners:
Self-employed individuals with high tax write-offs that lower their personal DTI.
Multifamily Operators:
Investors targeting the "gap" between residential and large commercial lending (5–8 units).
Basic Loan Terms and Options
Loan Amounts: | From 100,000 up to Super Jumbo levels of 3,000,000+. |
LTV Limits: | Purchases up to 85%; Cash-out refinances up to 75%. |
Property Types: | 1–4 Unit residential, 5–8 Unit multifamily, and non-warrantable condos. |
Occupancy: | Strictly non-owner occupied (Investment). |
Eligibility Requirements
- Coverage Ratio:
Minimum DSCR of 1.00 typically required; tiers down to 0.80 available for specialized ITIN programs.
- Credit Profile:
FICO scores as low as 680 for standard programs; 700+ for 5–8 unit multifamily.
- Reserves:
Typically 6 months of PITIA required.
- Appraisal:
Requires a market rent analysis (Form 1007 or 1025\) to confirm property income.
Advantages and Trade-Offs
Advantages
- Simplified underwriting focused on asset performance rather than personal life.
- Closing speeds as fast as 10–21 days compared to 30–60 days for conventional.
Considerations
- Rates are typically 1–2% higher than owner-occupied primary mortgages.
- Prepayment penalties are common but can often be "bought down" at closing.
Why Work With MMC Lending
Investor Specialist Focus:
We understand the nuances of rent rolls, Airbnb income, and 5–8 unit deal structures.
Flexible Underwriting:
We offer interest-only options to maximize your monthly cash flow.
State-Wide Expertise:
We serve major investor markets across the country with specialized local knowledge.
Ready to Get Started?
Take the first step toward your Investor DSCR Loans (1–8 Units). Our experienced loan officers are here to guide you through every step.