340-774-1101
340-774-1101
At First Liberty Mortgage Company, LLC, we are proud to offer DSCR Loans. A DSCR loan is a type of commercial real estate loan that’s underwritten primarily based on the Debt Service Coverage Ratio (DSCR) — a financial metric used to evaluate an income-producing property’s ability to cover its debt payments.
Loan Purpose
• Can be used for purchasing or cash-out refinancing of investment properties.
• Ideal for investors seeking to leverage equity or acquire new rental assets.
Eligible Property Types
• 1–4 unit residential investment properties
• Warrantable condos
• Mixed-use properties may be considered on a case-by-case basis.
Ownership Structures
• Can be vested in individual name, LLC, or trust.
• Flexible title holding options make it suitable for professional investors and entities.
Loan Amounts
• Loan amounts available up to $3 million, depending on property value and LTV.
Loan Terms
• Loan Term: 30-year variable term.
• Draw Period: 3-year draw period, allowing flexible access to funds.
• Interest-Only Period: First 3 years are interest-only payments, improving early cash flow.
Loan-to-Value (LTV)
• Up to 75% LTV for long-term rentals.
• Limited to 70% LTV for short-term rental properties due to increased risk profile.
Qualification Criteria
• No traditional income documentation required (i.e., no tax returns or pay stubs).
• Qualification is based on the property’s income — not the borrower’s personal income.
Long-Term Rentals:
• Can qualify using lease agreements or a rental income appraisal (Form 1007 or similar).
Short-Term Rentals (Airbnb, Vrbo, etc.):
• Can use a short-term rental appraisal with market-based figures.
• Must provide 24 months of bank statements showing consistent rental income deposits.
• May also provide rental platform income reports (Airbnb, Vrbo, etc.) for verification.
Closing Timeline
• Fast closings — typically within 30 days, assuming full document submission and no major appraisal delays.