Mini DSCR Overview:
What is a Mini DSCR Loan?
Benefits of Mini DSCR
Requirements of Mini DSCR
Documents you'll need
Apply today!
What is a Mini DSCR Loan?
A Mini DSCR Loan is a smaller-scale version of a traditional DSCR loan, designed for real estate investors to purchase or refinance rental properties without personal income verification, relying instead on the property’s rental income to meet debt coverage requirements (typically a DSCR of 1.0+). These loans are under $150K and are ideal for investors seeking quick, non-owner-occupied financing. However, they often come with higher interest rates and larger down payments (15-25%) compared to conventional mortgages.
An Impactful Loan for Business purpose Investing
A Mini DSCR loan is a game-changer for business purpose investments, offering flexibility and efficiency for real estate investors seeking to expand their portfolio with a limited budget. With a Mini DSCR loan, you can qualify based on the income generated by your investment property, rather than relying on your personal income or employment status. Let’s explore the benefits and requirements of this unique financing solution.
Benefits of a Mini DSCR Loan
Streamlined Qualification Process
DSCR loans emphasize the performance of the investment property, allowing borrowers to avoid complex personal income documentation. This makes the process quicker and less invasive.
Flexible Eligibility Criteria
These loans are ideal for self-employed individuals, seasoned investors, or those with non-traditional income sources. Personal income isn’t the focus—it’s all about the property’s cash flow.
Scalable Financing
Whether you’re buying your first rental property or expanding an existing portfolio, DSCR loans provide scalable solutions tailored to investment growth.
Competitive Loan Terms
DSCR loans often come with attractive terms, including competitive interest rates and flexible down payment options, making them an excellent choice for long-term real estate investments.
Versatility
From single-family homes to multifamily properties and commercial real estate, DSCR loans can be used for a wide range of property types.
The Documents you will need:
The Documents
you will need:
Unexpired Proof of Identification
Drivers License, Passport, etc.
Most recent 30 days of asset statements
To show enough funds for down payment, closing costs and reserves.
Curernt Mortgage statement
For primary residence (if applicable)
Entity Docs
Articles of Incorporation, Operating Agreement, Tax Identification Number, Certificate of Good Standing
Homeowners Insurance
A recent quote for the subject property.
Is a Mini DSCR Loan Right for You?
A Mini DSCR loan can be an excellent fit for investors who:
Prioritize property cash flow over personal income.
Want a faster, more straightforward approval process.
Plan to grow their portfolio of income-producing properties.
Have a strong understanding of real estate market dynamics.
Take the Next Step
Ready to leverage the power of a Mini DSCR loan for your business purpose investments? Contact us today to learn more about how this innovative financing option can help you achieve your real estate goals. Let’s build your future, one property at a time!