The debt service coverage ratio (DSCR), known as “debt coverage ratio” (DCR), is the ratio of operating income available to debt servicing for interest, principal, taxes and insurance (PITI). It is a popular benchmark used in the measurement of a borrower’s ability to produce enough cash to cover their mortgage payments.
Available on SFRs, 2-4 Units, Condos, Townhomes, Condotels, and Non-Warrantable Condos
Ratio ≤ 1:1, cash-out can be used to cover reserves
Loan amounts up to $2M
Non-Owner Occupied only
No reserves required ≤ 75% LTV
No income or job verification!!!
5yr/7yr ARM & 30-year Fixed
Reconciled rent estimate based on 1007 or lease agreement
