A DSCR (Debt Service Coverage Ratio) loan is based on a property’s rental income compared to its debt obligations. It allows investors to qualify based on property performance rather than personal income.
How a DSCR loan is underwritten
A DSCR loan is primarily underwritten based on the rental property’s ability to generate enough income to support its debt payments rather than relying on traditional personal income or employment documentation. Apollonia Equities considers the property’s rental income, expenses, value, credit profile, and overall transaction.
Apollonia Equities can consider properties with a DSCR as low as 0.75x, depending on the overall strength of the transaction. This can provide additional flexibility for investors purchasing or refinancing rental properties that may not meet the requirements of traditional lenders.
Purchase, refinance, or cash-out
DSCR loans can be used to purchase a rental property, refinance an existing loan, or access equity through a cash-out refinance. Apollonia Equities offers up to 80% LTV on qualifying purchases and up to 75% LTV on qualifying cash-out refinances.
Which properties qualify
- Single-family homes
- Condos
- Townhomes
- Small multifamily properties
These loans are designed for investors focused on long-term rental income, portfolio growth, and asset stability.