Income types
DSCR loans for 1 to 4 unit rentals.
Investors financing a rental on the property’s income, with no employment or tax returns on the application.
8 cakes take DSCR, 1 to 4 units.
Every cake with a published matrix for this income type, largest loan first. Open one for its limits and matrix.
What the file needs.
Gross rent divided by the qualifying payment: PITIA, or ITIA on interest-only. Rent is the higher of the lease or the 1007/1025 market rent when they are within 20%.
- A lease, or market rent on Form 1007/1025 from the appraiser
- Short-term rentals qualify on 12 months of platform or bank statements, or an AirDNA report on purchases
- A business purpose and occupancy affidavit
- Experienced investors show a year of property management history; first-time investors are eligible
- No-ratio DSCR is available on some cakes; the matrix sets the limits
From the DSCR guidelines, version 5.0, section 2, 3.1 to 3.8. The guidelines and matrix govern every file.
Read the guidelines (PDF, opens in a new tab)Check a scenario.
Move the score, LTV, and loan amount. The cakes that take it line up.
Other ways to document income
Have one of these files?
Talk it through with an account executive at (833) 717-0401 before you submit, or apply to become a partner and submit in TPO Connect.
Already approved? Log in to TPO Connect (opens in a new tab)
