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Loan purposes

Purchase DSCR loan guide

A purchase DSCR loan review starts with whether the rental property can support the proposed payment after realistic expenses.

What to prepare for a purchase

Prepare purchase price, target loan amount, rent support, taxes, insurance, HOA dues, property type, occupancy, reserves, and entity/title plans.

Run conservative DSCR assumptions before sending the scenario to a broker so the conversation starts with realistic cash flow.

  • Purchase contract or target price
  • Market rent or lease support
  • Down payment and reserve plan
  • Expected monthly debt service

How to compare purchase structures

Compare more than one loan amount and payment assumption. A lower purchase leverage may improve DSCR and available options, but it also changes cash-to-close.

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