DSCR Loan Qualification Tips – How to Get Approved Fast Without Income Docs
DSCR loans are the go-to funding option for investors who want to build wealth without W2 income, tax returns, or traditional bank hurdles.
But even though DSCR loans don’t require personal income docs, there are still key factors that make or break your approval.
Here’s how to qualify for a DSCR loan fast:
1️⃣ buy an ACTUALLY good deal
Look for rentals that cash flow. And I mean REALLY cash flow.
Not “this should cash flow if things go perfect” but “yes this will comfortable cash flow after taxes, insurance, property management, and some hiccups along then way”
Mathematically want a DSCR of 1.1+ (rent should be at least 110% of the monthly loan payment). You can get away with 1.05, but 1.1 is better.
1.25 DSCR will give you DSCR with the lowest interest rates
2️⃣ Have your numbers ready.
– Purchase price
– Monthly rent (or expected rent)
– Loan amount needed
– Rehab details (if applicable)
-Taxes
-Insurance
-HOA Cost
If you’re disorganized, things will take a long time to get approved.
3️⃣ Use an LLC.
Most DSCR loans are issued to entities, and a big benefit is it makes things easier to get approved since we don’t need to get as messy looking at all your personal details.
Set up an LLC early and keep your paperwork clean. Make sure you have an Operating Agreement and EIN when applying.
4️⃣ Keep your credit tight.
We don’t need tax returns, but most DSCR lenders want a 640+ credit score.
Eve though we don’t dive too much into personal stuff, credit is still super important. So don’t be racking up tons of personal debt before applying for DSCR loans.
5️⃣ Partner with a lender who moves fast.
Alot of the big name DSCR lenders have committees of BS you need to churn through to get approved.
Ignore them, and go to a lender that is run by investors that get it.
A lender like us!
At SLA Capital, we don’t ask for fluff.
We underwrite deals same-day and fund fast.
If you’re organized we can get a deal funded in just a couple of weeks.
Want to close without the headaches?
📲 Apply at slacapital.com
🛡️ Your quest for funding ends here.
