Debt-service coverage ratio loan (DSCR)
Whether you are looking to purchase your first rental property or are wanting to grow your existing portfolio, Quontic may be able to help make the process of buying an investment property easy. As a Community Development Financial Institution (CDFI), we can look at the prospective cash flow of the property and your good credit to determine if you qualify for our DSCR loan.
What you need to know about DSCR loans
How is DSCR different?
- You can qualify using just the income generated by the investment property
- AND, first-time investors are eligible, even if they're also first-time homebuyers
Why is DSCR important?
A lender needs to know your debt-service coverage ratio to determine if the investment property’s potential income will be enough to repay the loan. Since Quontic requires a minimum DSCR of 1.10x, the property will qualify for a DSCR loan if the rental income generated from it is greater than the proposed loan payment.
How is DSCR calculated?
What types of properties are eligible for DSCR?
Property types eligible for DSCR include single-family homes, 2-4 family units, planned unit developments (PUDS) and condos.
Loans designed for real estate investors
No tax returns or W2’s required
Corps or LLC accepted
Recognized as a top mortgage lender
Mission driven & federally certified
Frequently Asked Questions
What type of borrower is a DSCR loan good for?
DSCR or Debt-Service Coverage Ratio loans are great for borrowers who are:
- Seasoned or first-time investors
- First-time investors can ALSO be first-time homebuyers
- Self-employed borrowers with many businesses
- Entrepreneurs
- Retired
What is the maximum loan amount for a Quontic DSCR loan?
Quontic offers DSCR loans for up to $2,000,000 for qualified applicants.
What do I need to get a DSCR loan?
To qualify for Quontic’s DSCR loan, you’ll need to demonstrate the ability to repay with a DSCR of 1.10x or higher, good credit history, and a down payment of at least 25%.
Do I need a good credit score to get a DSCR loan?
To qualify for a DSCR loan from Quontic, you will need a minimum FICO score of 680.
Disclaimer:
1All lending products are subject to approval. Rates, program terms & conditions are subject to change without notice. Not all products are available in all states or for all amounts. This does not represent an offer to enter into a loan agreement. Other requirements, restrictions & limitations apply. Information is accurate as of August 15, 2024 & is subject to change without notice.
2The Federal Housing Agency based on single unit as of August 15, 2024
