Purchase financing
DSCR purchase loans that start with the rental property.
Build a non-owner-occupied investment-property purchase around price, requested leverage, qualifying rent, credit, assets, and the complete deal—not a conventional owner-occupied income box.
A DSCR purchase loan is designed for an eligible rental or investment property. The initial review connects the purchase contract, requested loan amount, down payment, expected or current rent, property expenses, property type, credit range, assets, entity structure, and intended business purpose.
Property-first does not mean document-free. It means the purchase is organized around the economics and eligibility of the rental property while the lender still reviews the complete borrower, property, title, insurance, appraisal, and closing file.
What goes into a DSCR purchase review
| Input | What to prepare | Why it matters |
|---|---|---|
| Purchase structure | Contract price, requested loan, down payment, earnest money, target closing date | Establishes leverage, cash to close, and the requested transaction |
| Property cash flow | Current lease, projected rent, appraisal market rent, and property expenses | Supports the program-specific DSCR calculation |
| Property profile | Address, property type, unit count, occupancy plan, condition, and intended rental use | Determines property and program fit |
| Borrower readiness | Credit range, liquidity, reserves, entity documents, experience, and identification | Completes the overall risk and closing review |
Illustrative purchase scenario
This example shows the math only. It does not represent a maximum LTV, available rate, approval, or commitment.
Purchase price$600,000
Illustrative down payment$150,00025% of purchase price
Illustrative loan$450,00075% LTV
Modeled DSCR1.27x$4,900 rent ÷ $3,850 PITIA
How to keep a purchase moving
- Use the actual purchase contract and current target closing date.
- Identify whether the property is occupied, vacant, listed for rent, or intended for short-term use.
- Provide a realistic requested loan amount instead of only asking for the “maximum.”
- Separate closing funds from post-closing reserves.
- Confirm vesting early when an LLC or other eligible entity may take title.
DSCR purchase loan questions
Can I use a DSCR loan for my primary residence?
This quote path is designed for non-owner-occupied rental or investment property used primarily for business or investment purposes. A property you plan to occupy requires a different licensed review.
Does the purchase need a tenant already in place?
Not always. The acceptable rent source depends on property status, appraisal, lease, market-rent support, property type, and available program. Submit the actual property status so the right rent path can be reviewed.
Is a larger down payment always better?
A lower requested loan may improve leverage and payment coverage, but the right structure also depends on liquidity, reserves, pricing, investment strategy, and the complete file. The goal is a workable transaction, not a ratio optimized in isolation.
Investor education from the DSCR Loan Guru deskPrepared for FFC Mortgage Corp. dba NonQM123, NMLS #3252.
Updated July 23, 2026
Purchase path
Bring the contract. The Guru will organize the rental deal.
Start with the property and financing request. No hard credit pull is required to begin the scenario review.