Can anyone get a DSCR loan?

[Blake Ramsey]

Hey everyone, my name is Blake and I'm an aerospace engineering student based in Springfield, Mo. I am looking into buying an investment property in the next year or so and was wondering about DSCR loans. Are there any qualifications I'm missing, it seems as long as you can find a good deal and have a dp anyone can qualify. Is this the case?

If you have any experience with a DSCR loan I'd like to hear your experience with it!

[Brittany Minocchi]

@Blake Ramsey your income or employment history isn't a factor with a DSCR -- it is based on the potential income of the property using either a current lease or market rents. The lender will use the lower of the two in most cases. Most lenders require a score of 620+, 20-30% down and 3+ months of reserves. They do have prepayment penalties that can sometimes be bought out if that's an issue. They will have higher rates than a conventional loan. Around a 0.75-1.25 DSCR is typically required (the higher the ratio, the better the terms/rate). These guidelines are constantly changing, but that's what they look like right now.