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Debt-Service Coverage Ratio (DSCR) Loans

Debt-Service Cover Ratio (DSCR) loan from Visio Lending, which allows you to qualify for an investment property with rental income instead of with your personal finances.

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LEADING PRICING

Industry leading pricing only available from a direct lender

30-YEAR LOANS

Full 30-year terms with no balloons

LOW DOCUMENTATION

Simpler documentation with no personal DTI and no tax returns

INVESTOR-FRIENDLY

Protect your identity and personal assets by financing in an entity 

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Want to purchase an investment property — but don't want to use your personal income to qualify?

As a DSCR lender, Visio offers fast, simple, and reliable loans to LLCs, partnerships, and limited partnerships; we determine your interest rate via your credit score (680 and up), Debt-Service Coverage Ratio (1.0 and up), and Loan-to-Value (LTV).

Our DSCR loans typically can be used for Single-family (1-4 unit) residential rentals, Vacation or short-term rentals property, with a minimum property value of  $150k. 

DSCR Ratio

What is the Debt-Service Coverage Ratio (DSCR)?

DSCR is a simplified way to measure cash flow and is calculated by dividing the monthly rent by the monthly principal, monthly interest payments, taxes, insurance, and association dues (collectively known as PITIA). 

P = Principal I = Interest T = Taxes I = Insurance A = Association dues (2)For example, if a property generates a Net Operating Income of $100,000 annually and its annual debt service is $81,783, the equation would like this:
P = Principal I = Interest T = Taxes I = Insurance A = Association dues (650 x 125 px)

DSCR Explanation

What is a DSCR Loan?

Unlike a consumer or owner-occupied mortgage loan, but similar to a commercial real estate mortgage, a DSCR loan is underwritten based on property-level cash flow, rather than on personal income.

DSCR loans work by calculating the Debt Service Coverage ratio, which identifies whether a property can cover its own debts. The rental income is divided by PITIA (Principal, Interest, Taxes, Insurance, Association dues) to develop a ratio.

If the ratio is above 1, this means that it is covering all of its debts and breaking even, while if it is below 1, the rental property is losing money. Lenders typically seek a DSCR of 1.2 or higher, meaning that the property is generating 1.2 times its debts through rental income. 

Get Detailed DSCR Loan Info

When to Get an DSCR Loan vs. When Not To

YES

You’re purchasing through an LLC

Purchasing a renovated Property

The DSCR of a property is above 1.2

Purchasing a rental property

You’re purchasing your second + investment property 

Purchasing a property value above $125k

NO

You’re purchasing as a sole proprietor

You’re purchasing your first investment property

The DSCR of a property is below 1.2

Purchasing a rental property

You’re purchasing your second + investment property 

Purchasing a property value above $125k