First rental purchase loans
You found a place that should rent well. A DSCR purchase loan lets the rent do a lot of the heavy lifting when it comes to qualifying, so your W-2 history is not the whole story.
Who this is good for
- First-time investors buying a single-family rental, condo or townhome to rent out
- Self-employed buyers whose tax returns understate what they actually earn
- Investors buying in an LLC instead of their personal name
- People who already own one or two rentals and want to keep going
Investment property only
This is a business-purpose loan for non-owner-occupied investment property. You cannot live in the property. GoDSCR is a mortgage broker: we arrange and shop financing from wholesale lenders, and every loan is subject to the lender's underwriting and approval.
How it works
Run the rent math first
Plug the expected rent and the full monthly payment into our calculator. If the rent covers the payment comfortably, you are in a good spot to talk options.
Get your offer in shape
We help you understand what a lender will want to see so your offer, timeline and inspection period line up with the financing.
We shop it
As a broker, we take your scenario to multiple wholesale lenders and bring back the programs that fit, with the tradeoffs explained.
Appraisal and rent check
The appraiser estimates both the value and the market rent. That rent figure feeds directly into the DSCR the lender uses.
Close and get keys
Sign, fund through the lender, record, and you officially own a rental. Then the real fun (and work) begins.
What to expect
- A down payment from your own funds or other acceptable sources; the exact amount varies by program and by the strength of the deal
- Cash reserves left in the bank after closing, measured in months of payments
- A credit review; stronger credit generally opens more program options
- An appraisal that includes a market rent estimate
- A signed statement that the property is for business purposes and that you will not live in it
Watch-outs
- Do not overestimate rent. Use realistic, local comparable rents, not the best number you saw online.
- Remember the payment includes taxes, insurance and any HOA, not only principal and interest.
- If you plan to live in the property at any point, this is not the right loan; we only arrange business-purpose investment loans.
Questions about first rental purchase loans
Can a DSCR loan really be used for my very first rental?
Many programs allow first-time investors. Some wholesale lenders ask for a bit more in reserves or down payment when you have no landlord history. We shop for programs that welcome new investors.
Do I need a lease in place to buy?
Usually not for a purchase. Lenders typically lean on the appraiser’s market rent estimate when the property is vacant or the tenant is moving out.
Can I buy the property in an LLC?
Often yes. Many DSCR programs allow LLC vesting, usually with a personal guarantee from the owners. Talk to a CPA or attorney about whether an LLC makes sense for you.
Other ways we can help
DSCR cash-out refinance
Tap the equity in a rental you already own and put it toward the next one.
DSCR rate-and-term refinance
Swap your current rental loan for one with a better payment, term or structure, with no cash out.
Short-term rental loans
Financing for vacation and nightly rentals, where income is evaluated differently than a 12-month lease.
2-4 unit rental loans
Duplexes, triplexes and fourplexes: several rents under one roof and one loan.
Ready to line up rental #1 (or #2)?
Tell us about the property. We will shop wholesale lenders for a business-purpose DSCR loan and walk you through every step in plain English.