What exactly is a DSCR loan?

A mortgage that qualifies the loan on the property's rental income rather than your personal income. DSCR = gross rent ÷ PITI. If that ratio is 1.0 or higher, the property pays its own mortgage and you qualify. No tax returns or pay stubs required, just property-level numbers and a credit pull.

Can I use projected rental income to qualify?

For existing rentals: yes, using the actual lease plus 25% vacancy assumption. For vacant properties: we use the appraiser's market rent estimate (Fannie Form 1007). Not pie-in-the-sky projections.

DSCR loans typically allow LLC-vested title. Conventional investment loans usually require personal title, though you can transfer into an LLC after close (carefully, and with lender disclosure). We'll guide the structure based on your goals.

Is there a first-time-investor program?

No special program, but we can structure your first investment purchase several ways depending on whether you'll live in one unit (FHA/VA on 2-4 unit) or not (conventional or DSCR). For a true first-time investor, we often start with a 2-4 unit owner-occupied play, lowest down payment, best rate.

How much down do I really need?

Owner-occupied 2-4 unit: 3.5% FHA or 0% VA. Non-owner-occupied: 15-25% conventional, depending on property type and your credit. DSCR: 20-25% standard. Cash-out refi out of an existing rental: you can effectively finance ~75% of the new purchase if numbers work.

Do these loans have prepayment penalties?

Conventional investment loans: no. DSCR: some programs have a 1-3 year prepayment penalty for a slightly better rate; others don't. We'll show you both options when we price it.

Investment Loan

Investment Property Loans

Financing for rentals, flips, multi-units, and second homes, with programs that work around your W-2 income.

Your next rental doesn't have to hang on your W-2. DSCR loans qualify on the property's income, not yours.

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About Investment Property Loans

Investment property loans finance real estate you don't personally occupy: single-family rentals, 2-4 unit multi-family, flips, and vacation homes. We close these with conventional financing when the numbers work, and with DSCR (debt-service-coverage-ratio) loans when you'd rather qualify on the property's rental income than your personal tax returns. Growing real estate investor market in NKY and Cincinnati, cash-flow markets with reasonable entry prices.

Key benefits

DSCR loans, qualify on rental income

Debt-service-coverage-ratio loans skip tax-return scrutiny. If the property's gross rent covers PITI at a ratio of 1.0× or better, you qualify. 1.2× gets best pricing.

Up to 10 conventional financed properties

Fannie Mae allows up to 10 simultaneously financed properties per borrower. We help you stack them correctly and stay within guidelines.

2-4 unit multi-family

Owner-occupied 2-4 unit buyers can use FHA (3.5% down) or VA (zero down for eligible vets) and rent the other units. Non-owner-occupied 2-4 unit is conventional or DSCR.

Cash-out refinances

Pull equity from an existing rental to fund the next down payment. Keeps your capital working. Up to 75% LTV on conventional cash-out for investment properties.

The process

Pre-qualification, we pick the best qualifying track (W-2 income or DSCR)
Property under contract, rental comps pulled via 1007 rent schedule
Appraisal with rent-support documentation
Underwriting, 25-30 days typical for conventional, 30-40 for DSCR
Close and rent it out

Questions we get a lot

Investment FAQ

A mortgage that qualifies the loan on the property's rental income rather than your personal income. DSCR = gross rent ÷ PITI. If that ratio is 1.0 or higher, the property pays its own mortgage and you qualify. No tax returns or pay stubs required, just property-level numbers and a credit pull.

Other loan programs

Not sure which one fits?

We'll help you compare. Here's what else is on our rate sheet.

Serving

Fort Thomas, KY Florence, KY Bellevue, KY Covington, KY Newport, KY Alexandria, KY Highland Heights, KY Cold Spring, KY Northern Kentucky Cincinnati, OH Dayton, KY

Ask about Investment loans

Lee answers personally. Usually within a business hour.