Questions? Good. Here are answers.

DSCR stands for debt service coverage ratio. A DSCR loan qualifies you mainly on whether the rental property's income can cover its own monthly payment (principal, interest, taxes, insurance, and any HOA dues), instead of on your personal income. For example, if a home rents for 2,000 dollars a month and the full payment is 1,600 dollars, the DSCR is 1.25. It is a business-purpose loan made for investors buying or refinancing rental properties.

Often, yes. Many DSCR programs work for first-time investors, though some lenders ask for a bit more in reserves or down payment if you have not owned a rental before. GoDSCR exists to help investors buying rental number one through five, so we will walk you through which programs fit your experience level.

No. DSCR loans are business-purpose loans for non-owner-occupied investment properties only. That means neither you nor your family can live in the home, even part time. You will sign a statement confirming the property is an investment. If you want to buy a home to live in, a DSCR loan is not the right product.

No. GoDSCR is a brand of Loan Daddy LLC, a mortgage broker. We do not provide the loan ourselves. Instead, we shop your scenario with multiple wholesale lenders, help you compare the options, and guide your file from application through closing. The loan itself comes from the wholesale lender you choose.

In general, a higher DSCR is better, because it shows the rent comfortably covers the payment. A ratio of 1.0 means the rent just covers the payment, and many programs look for something at or above that. Some programs allow a lower ratio, but usually with tradeoffs such as a larger down payment, more reserves, or different pricing. Exact requirements vary by lender and loan program, so we will check your numbers against several options.

Usually not for income. DSCR loans focus on the property's rental income rather than your personal income, so most programs do not ask for W-2s, pay stubs, or tax returns to qualify. You will still provide things like identification, bank statements for down payment and reserves, a credit report, and property documents such as a lease or insurance quote.

Yes, many DSCR programs allow you to close in the name of an LLC or similar business entity. You will typically provide the formation documents, operating agreement, and EIN, and the owners are often asked to sign a personal guarantee. It is a good idea to talk with an attorney or tax professional about whether an LLC makes sense for you.

Some DSCR programs accept short-term rental income, using either past booking history or a market estimate of what the property could earn. Requirements are often different than for long-term rentals and vary by lender. Before you buy, check local short-term rental rules and any HOA restrictions, since some areas limit or ban them.

It varies with the program, the property, your credit, and your experience. Generally, lenders want a meaningful down payment on investment properties, and they also want to see reserves, which is cash left over after closing measured in months of the property's payment. Plan for closing costs too. Your credit score still matters even though the property's income is the main qualifier, because it can affect pricing, how much you can borrow, and which programs are available; requirements vary by lender. Share your scenario with us and we can give you a clearer picture of what to expect.

Timelines vary based on the appraisal, title work, insurance, how quickly documents come in, and the lender's workload. DSCR loans can often move efficiently because there is less personal income paperwork. The best way to keep things on track is to send complete documents quickly and respond to any conditions right away.

Common choices include single-family homes, townhomes, condos, and small multi-family properties with two to four units. Some programs also cover larger multi-family or mixed-use buildings. The property needs to be a rental investment, not a home you live in. Eligibility for specific property types, like rural homes or certain condos, varies by lender.

Yes. You can do a rate-and-term refinance to change your rate, term, or loan type, or a cash-out refinance to pull equity out for repairs or your next purchase. Some programs have a seasoning requirement, meaning you need to have owned the property for a certain time before cashing out based on a new appraised value. Tell us about your property and goals and we will look for a fit.

Availability varies by state. Loan Daddy LLC is licensed in Arizona. Please see our licensing page for full details, and if your property is somewhere else, just ask us whether we can help with your scenario.

Nothing. There is no cost to ask questions, share your scenario, or get a sense of your options. If you decide to move forward, we will explain any fees and closing costs clearly before you commit to anything.

First, we review your scenario and shop it with wholesale lenders to find programs that fit. Once you choose an option, the lender orders an appraisal, which usually includes a rent estimate, and starts underwriting. You will receive a list of conditions, such as bank statements, insurance, and entity documents, and we help you clear each one. When everything is approved, you get the clear to close, sign your documents, and the loan closes.