No Appraisal DSCR

This DSCR loan is designed for real estate investors who want to qualify based on property cash flow rather than personal income. It allows for fast approvals using automated valuation methods in many cases, helping investors access capital quickly without a traditional appraisal.

Borrower Eligibility

• Natural persons: Up to 2 applicants

• LLC ownership allowed, all members ≥ 25% must apply

• Full recourse personal guaranty required

• Business purpose only, non-owner occupied

Credit Score Requirements

• Experienced investor: 680 minimum

• Inexperienced investor: 700 minimum

• Lowest middle FICO of all borrowers/guarantors used

Maximum Loan-to-Value (LTV)

Experienced Investors

• 680–699: 70% (Rate/Term), 65% (Cash-Out)

• 700–759: 75% (Rate/Term), 70% (Cash-Out)

• 760–850: 80% (Rate/Term), 75% (Cash-Out)

Inexperienced Investors

• Reduce max LTV by 5% from above tiers

DSCR Requirements

Experienced

• 680–699: Minimum 1.10 DSCR

• 700+: Minimum 1.00 DSCR

Inexperienced

• Increase required DSCR by +0.10

Loan Amounts

• Minimum: $75,000

• Experienced: Up to $1,000,000 (Max Cash-Out $500,000)

• Inexperienced: Up to $500,000 (Max Cash-Out $250,000)

Appraisal Guidelines

• Loans over $400,000 require appraisal at final underwriting

• SFR, condo, PUD: Hybrid appraisal

• Other property types: Full appraisal

• If no AVM, BPO, or residential evaluation is available, appraisal required regardless of loan size

• Lease rent variance over 10% from market triggers Form 1007 rent schedule

• Missing or $0 rent on rent schedule results in decline

Property Guidelines

• 1–4 unit SFR, townhouse, PUD, condos (low, mid, high rise)

• Max lot size: 10 acres

• Lease term must be ≥ 12 months with 2-week buffer

• Property cannot be listed for sale

Eligible States

AK, AR, AZ, CA, CO, CT, DE, FL, GA, HI, ID, IN, KS, KY, LA, ME, MO, MS, MT, NC, ND, NE, NJ, NV, OH, OK, PA, SC, SD, TN, TX, UT, VA, WA, WI