DSCR loans. Tapping into commercial real estate success.
LitFinancial helps you calculate the earning potential of a property for a loan.
Best for commercial real estate professionals looking to purchase property with a loan.
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What is a DSCR loan?
A DSCR loan is primarily used in commercial real estate ventures. It essentially calculates the income a property could generate against the expenses associated with purchasing, running, and maintaining the property. It weighs the debts against the potential income of the property.
Is this loan right for me?
If you’re a real estate investor or would-be landlord, the odds are it is right for you. Commercial real estate investors use DSCR loans to help them purchase properties without having to pay the full amount upfront. If you’re into commercial real estate, DSCR loans can be helpful to finance investments without tapping into your personal lines of credit.
How can LitFinancial help?
DSCR loans are complex financial instruments. When your business runs on the income a property generates, you want to be sure that you got every advantage on that property’s DSCR loan. We’ll help you with all the details and get every percentage point you want from your loan.
Let's help make things clearer.
A DSCR loan is a mortgage for real estate investors that’s based on the property’s rental income—not your personal income.
Lenders look at whether the rent the property brings in is enough to cover the mortgage payment. If the numbers work, you can qualify.
A DSCR of 1.0 or higher is typically required, meaning the property pays for itself. Some lenders allow lower DSCRs with higher down payments.
Usually no. DSCR loans often don’t require tax returns, W-2s, or employment verification.
Most programs require 20%–25% down, but some allow less with strong credit or higher DSCR.
Many lenders look for a score of 620–680+, depending on the program and down payment.
Single-family homes, condos, townhomes, and 1–4 unit investment properties. Some lenders also allow short-term rentals (Airbnb/VRBO).
Yes—many lenders offer DSCR programs for vacation rentals, using either market rent or actual Airbnb income.
Yes, they’re usually a bit higher than conventional loans because they’re considered business-purpose loans.
They often close quickly—as fast as 2–4 weeks—since there’s less income verification.
Yes. You can do rate-and-term or cash-out refinances using a DSCR loan.
Yes. Most lenders want 3–12 months of reserves, depending on the loan size and DSCR.
A standard appraisal is required, and lenders usually order a rental analysis to estimate market rent.
Some lenders allow gift funds, but many prefer the borrower to bring their own investment capital.
Most DSCR loans have a prepayment penalty, often for 1–5 years, since they’re investor-focused loans.
Yes—many DSCR lenders allow closing under an LLC or corporation to help with privacy and liability.
Absolutely. Investors who own multiple properties often use DSCR loans because they avoid personal income limits.
You may still qualify with a bigger down payment, higher credit score, or strong reserves—depends on the lender.
No. DSCR loans are for non-owner-occupied investment properties only. You cannot live in the property.
It’s a great fit if you’re an investor who wants simple qualification, flexible guidelines, and a loan based on property income—not your personal income.
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Whether you’re estimating your mortgage costs, seeking to simplify and save through debt consolidation, or aiming to explore and compare various loan options tailored to your needs, our intuitive tools are here to guide you every step of the way.
No SSN required. Zero impact to credit. Your information is never sold.
Why choose LitFinancial?
Experience Matters
When it comes to loan officers, we are experienced experts and take pride in leveraging our knowledge to help you every step of the way.
We Are Your Advocate
Our loan officers are advocates through -out your lending journey. From finding the right mortgage plan, to proactively engaging with key stakeholders on your behalf.
Relentlessly Seeking Solutions
We are committed and passionate about helping borrowers find their best financial fit. We tap our trusted network to look at any and all options.
Lit For Life
Our approach to advising is finding the best solution for each client’s life. We will also be there as your needs change through different life stages.
Advising You Like You’re Family
We are a mortgage partner that takes the time to listen to your needs and goals. We care about each client that tailor our advice for your best outcome.
Leading the Industry
We are constantly modernizing lending models, streamlining treasury operations, and increasing transparency across mortgages. This allows us to bring innovative products and better service to you.
Chris Solinski, Branch Manager
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