DSCR Loans (Investor Mortgages) — Star Financial

Qualify for investment property financing based on the property’s cash flow, not your personal DTI. Perfect for real estate investors scaling rental portfolios.

What Is DSCR?

DSCR = Gross Rent ÷ PITIA (Principal, Interest, Taxes, Insurance, HOA).
Many programs approve at ≥ 1.00 DSCR (some allow <1.00 with compensating factors).

Who This Helps

• Buy-and-hold investors (SFR, 2–4 units, condos, townhomes)
• Short-term rental (STR/Airbnb/VRBO) operators (program-specific)
• LLCs/Corporations (title/vesting often allowed)

Key Benefits

• DTI not required — decision driven by property DSCR
• Close in LLC (often allowed)
• Purchase, rate/term, and cash-out options
• No income or employment docs in many programs
• Use market rent (1007/1025) or actual leases; STRs may use AirDNA/12-mo statements (varies)

Basic Eligibility (varies by investor)

• DSCR typically ≥ 1.00 (lower DSCR possible with pricing/reserves)
• Min credit score/LTV per matrix
• Reserves required (e.g., 6–12 months PITIA common)
• Property condition, appraisal, and rent support required

Documents You May Need

• Lease agreement(s) or 1007/1025 rent schedule
• Appraisal (with market rent)
• HOA statement (if applicable), insurance, photo ID
• Entity docs if closing in an LLC (articles, operating agreement, EIN)

STR (Airbnb/VRBO) Considerations

• Some programs allow STR income using AirDNA, 12-month statements, or host payout history
• Seasonality and cleaning/management expenses may be factored

How It Works

1. Consult & snapshot — we estimate DSCR and max loan
2. Term selection — 30-yr fixed, ARM, or Interest-Only options (program-specific)
3. Underwriting — appraisal + rent support; title/insurance
4. Close — purchase or cash-out to fuel the next deal

What to Consider

• Pricing improves with higher DSCR, lower LTV, stronger credit
• Prepayment penalties are common on investor loans (choose step-down or buy it out)
• Entity vesting requires entity docs and sometimes personal guarantees
• Vacancy/turnover risk — keep reserves for safety

Star Financial • NMLS 1429 • Serving CA, TX & FL
Disclosures: Non-QM investor program; not a commitment to lend. Terms, eligibility, and guidelines vary by investor and are subject to change. All loans subject to appraisal, rent support, and credit/property review.