The ratio of a rental property’s gross monthly rental income to its total monthly PITIA debt obligation.
Fannie Mae Form 1007 appraisal addendum used by DSCR underwriters to establish objective market rent on 1-unit investment properties.
Standard 2–4 unit duplex, triplex, and fourplex appraisal and comparable rent schedule required for multi-unit DSCR loans.
A 5-year declining prepayment fee structure charging 5% in Year 1, 4% in Year 2, 3% in Year 3, 2% in Year 4, 1% in Year 5, and 0% thereafter.
A 3-year declining prepayment penalty charging 3% in Year 1, 2% in Year 2, 1% in Year 3, and 0% after Month 36.
An institutional prepayment calculation that makes the lender whole for lost interest spread relative to U.S. Treasury yields.
A specialized DSCR program for properties whose current monthly rent is below monthly PITIA (0.75x–0.99x) or where no ratio is required.
Using AirDNA Rentalizer or 12-month Airbnb/VRBO payout history instead of a long-term lease to qualify a vacation rental DSCR loan.
Refinancing an all-cash investment property purchase within 0 to 180 days of acquisition to recoup purchase capital + documented rehab.
The number of months an investor must hold title to a renovated property before refinancing based on its new After Repair Value (ARV).
The complete monthly housing expense denominator used to calculate Debt Service Coverage Ratio (DSCR).
A DSCR loan featuring an initial 10-year interest-only period followed by a 20-year or 30-year principal amortization schedule.
An institutional 12-to-24 month short-term bridge loan used to acquire and renovate 1–4 unit investment properties.
Whether interest on a fix-and-flip or construction loan is charged on the full committed loan amount (Dutch) or only on drawn funds (Non-Dutch).
The total loan amount divided by total project cost (Purchase Price + Documented Rehab Budget).
The total committed bridge loan (acquisition + rehab holdback) divided by the appraiser’s projected After Repair Value (ARV).
Holding title to investment properties inside an LLC, Series LLC, or LP to segregate liability while borrowing under a personal guaranty.
DSCR investment property financing for non-U.S. citizens residing abroad (Foreign Nationals) or U.S. residents filing with an ITIN.
Wholesale DSCR financing for condominium units that fail Fannie Mae/Freddie Mac warrantability rules due to short-term rentals, investor concentration, or resort amenities.
A single commercial or DSCR note secured by 2 to 25+ rental properties under one master loan and payment.
Net Operating Income (NOI) DSCR underwriting used for 5+ unit apartment buildings and mixed-use assets.
Dwelling Policy Form 3 (DP-3) landlord hazard and rent-loss coverage required by wholesale DSCR lenders.