DSCR Loan Pricing,
Simplified With LendDSCR

Indicate whether you are getting a loan for a purchase or a refinance.

Purchase-money loans tend to have lower interest rates than refinances.

What type of refinance are you trying to do: a rate/term refinance or a cash out refinance?

A rate/term refinance is the refinancing of an existing mortgage for the purpose of changing the interest and/or term of a mortgage without advancing new money on the loan.

A cash out refinance is a transaction in which the new loan amount exceeds the total of the principal balance of the existing first mortgage and any secondary mortgages or liens, together with closing costs and points for the new loan. This excess is usually given to the borrower in cash. To qualify for these investor DSCR programs, cash out must be used for a business purpose.

Rate/term refinances generally have a lower interest rate and higher loan-to-value Ratio (LTV) maximum than a cash out refinance.

Enter the worth of the subject property (the property the loan is for)

This is often referred to as the Fair Market Value (FMV) of the property, or the value a purchaser will pay for a property. On an appraisal, its value is determined by comparing the property to similar properties that have sold in the community.

Enter the loan amount being requested. This number should always be less than the Appraised Value/Purchase Price. For purchases, this number is the value of property minus the amount of the down payment.

Both the actual dollar amount itself and the ratio of the loan amount to the property value can affect your interest rate. A loan that is small relative to the property value will typically have a lower interest rate.

If you edit this percentage, the Loan-to-Value Ratio will update automatically to match.

The loan-to-value ratio, or LTV, is the ratio of the loan amount to the value of the property.

The lower the LTV ratio, the lower your interest rate will tend to be.

If you edit this percentage, the Loan Amount will update automatically to match.

Which state is the subject property in?

Certain states have special regulations around mortgage lending, and some jurisdictions have restrictions on prepayment penalties, so they may require a different prepayment penalty term than selected.

Which county is the subject property in?

Select your citizenship or residency status. If there are multiple borrowers with different statuses, choose the one lowest in this list.

US Citizens tend to receive lower rates or have an easier time qualifying than noncitizens because citizens are less risky to lend to.

Select your visa type. If there are multiple borrowers who hold different types of visas, choose the one lowest in this list.

Similar to the distinction between citizens and noncitizens, your visa type may affect your eligibility.

Enter the amount of any liquid assets that are available for qualification.

A liquid asset is a cash asset (such as funds in a checking or savings account) or an asset that is easily converted into cash.

Enter the present value of any stocks and bonds that will be used for qualification.

Most US credit reports provide scores from three different agencies. Enter the middle of the three scores. If your credit report only has two scores, enter the lower of the two.

Your FICO score plays a significant role in determining the interest rate you receive on a loan. The higher FICO score, the lower interest rate. Generally, a higher FICO score indicates that you have a strong credit history and are more likely to repay your debts on time.

In addition to affecting the interest rate, your FICO score can impact your loan eligibility. LendSure DSCR Investor Cash Flow Loan has a minimum credit score of 660.

Enter the number of years ago when you opened your oldest credit tradeline—

for example, this might be whenever you got your very first credit card or car lease. This information is typically listed on your credit report.

Enter the number of active tradelines you have. These are typically retail, installment, revolving, and mortgage accounts on your credit report that you are actively making payments on.

Active trade lines must exhibit activity in the past 24 months.

Select "Yes" if you have had a major credit event:

a bankruptcy, foreclosure, short sale, mortgage modification, or deed-in-lieu-of-foreclosure.

Bankruptcy is a proceeding in Federal Court that alters or eliminates an eligible individual’s obligations to repay some or all of his or her debts to creditors.

If you have had a bankruptcy, indicate how long ago the bankruptcy was discharged.

A foreclosure is a legal action by the lender upon default to have the property sold to pay the securing mortgage.

If you have had a foreclosure, indicate how long ago the foreclosure was completed.

A deed-in-lieu of foreclosure is a deed given by a borrower to the lender to satisfy a debt and avoid foreclosure.

If you have had a deed-in-lieu of foreclosure, indicate how long ago the deed-in-lieu of foreclosure was settled.

A short sale is a commonly used alternative to a foreclosure. In a short sale, the lender agrees to accept an amount less than is actually owed on the loan, based on a showing of financial hardship.

If you have had a short sale, indicate how long ago the short sale was completed.

A loan modification is a change to the terms of the loan, typically due to financial hardship. In most cases, the goal is to lower the monthly payment. Modification is an alternative to foreclosure that is easier for homeowners and less expensive for lenders.

If you have had a mortgage modification, indicate how long ago the mortgage modification was completed.

Have you been more than 30 days late on any rent or mortgage payments? If so, select the option that best represents the amount of lates and when those lates occurred.

Typically, lenders do not report payments that were made less than 30 days late to the credit bureaus, so a credit report will only indicate when payment was made more than 30 days late.A "30-day late" payment is one that was paid more than 30 days after it was due. A "60-day late" was paid more than 60 days after it was due; these are more severe than 30-day lates.

If you have never paid a mortgage or rent on a home before, or you cannot provide proof that you made such payments, then answer "No payment history."

You are considered a first-time homebuyer if you have never had an ownership interest in residential real estate.

First-time homebuyers have additional qualification requirements.

Experience matters when it comes to getting the best rate on a DSCR loan.

An experienced property investor can expect a lower interest rate than someone who’s becoming a property investor for the first time.​

Indicate what type of property you are trying to get a loan for.

Learn about property types.

Rural properties, condotels, 5-8 unit properties, and non-warrantable condos all tend to have higher interest rates than 1-4 unit properties.

A property indicated by the appraisal as rural, zoned rural, or possessing rural features is typically considered a rural property.

Rural properties have additional qualification requirements and may require special review.

Enter the gross monthly rent from the subject property, before taxes or any other expenses.

This will be used to calculate the Debt Service Coverage Ratio (DSCR), which is the gross monthly rent amount divided by the total debt service.

If the DSCR is less than 1 (i.e., you earn less in rent than you pay each month for these regular expenses), you can expect a higher rate than if the DSCR is 1 or higher. A DSCR of 1.25 or over comes with a significantly lower rate than a DSCR of 0.80.

To explore how DSCR works,

try out our DSCR calculator tool.

Indicate whether the property will be a short-term rental or a long-term rental property.

Short-term rental properties are rented on a nightly, weekly, or monthly term. Often these are posted on a service such as AirBnB. Short-term rentals are less consistent from month-to-month, so these properties tend to incur a higher interest rate.

Long-term rental properties are leased to a tenant for an extended period of time, traditionally a year or more.

Enter the amount of the monthly property tax burden on this property. (For a purchase, you may have to rely on an estimate from an outside source.)

Why do I need to provide this?

The monthly property tax burden is part of the Debt Service Coverage Ratio (DSCR) calculation. We divide the gross monthly rent amount by the total “debt service,” the sum of:

• The monthly payment on your new loan
• The monthly tax burden
• The insurance payment
• The HOA fees

If the DSCR is less than 1 (i.e., you earn less in rent than you pay each month for these regular expenses), you can expect a higher rate than if the DSCR is 1 or higher. A DSCR of 1.25 or over comes with a significantly lower rate than a DSCR of 0.80.

To explore how DSCR works,

try out our DSCR calculator tool.

Enter the amount of your monthly homeowner’s insurance payment on this property. (For a purchase, you may have to rely on an estimate from an outside source.)

Why do I need to provide this?

The insurance payment is part of the Debt Service Coverage Ratio (DSCR) calculation. We divide the gross monthly rent amount by the total “debt service,” the sum of:

• The monthly payment on your new loan
• The monthly tax burden
• The insurance payment
• The HOA fees

If the DSCR is less than 1 (i.e., you earn less in rent than you pay each month for these regular expenses), you can expect a higher rate than if the DSCR is 1 or higher. A DSCR of 1.25 or over comes with a significantly lower rate than a DSCR of 0.80.

To explore how DSCR works,

try out our DSCR calculator tool.

Enter the amount of the monthly HOA payment on this property.

Why do I need to provide this?

The monthly HOA payment or fee is part of the Debt Service Coverage Ratio (DSCR) calculation. We divide the gross monthly rent amount by the total “debt service,” the sum of:

• The monthly payment on your new loan
• The monthly tax burden
• The insurance payment
• The HOA fees

If the DSCR is less than 1 (i.e., you earn less in rent than you pay each month for these regular expenses), you can expect a higher rate than if the DSCR is 1 or higher. A DSCR of 1.25 or over comes with a significantly lower rate than a DSCR of 0.80.

To explore how DSCR works,

try out our DSCR calculator tool.

The prepayment penalty option determines how long you must make payments on your loan before you can pay it off without penalty. If you pay off the loan before this period is over, you will have to pay an additional sum, usually 5% of the outstanding balance (depending on local laws).

Loans with higher prepayment penalties usually come with a lower interest rate. Opting for a 36 month prepayment penalty may make smart financial sense, especially if you plan to hold onto the property for a few years. So, when applying for your DSCR loan, carefully consider whether you plan on selling or refinancing the property in the next three years. If not, then opting for the 36 month prepayment penalty will result in a significantly lower interest rate.