We do DSCR right

Rate Beat Program

If we can't beat your competing rate quote, we will waive the lender fee. Only applicable for DSCR loans. Click here for full terms and conditions.

21 Day Close

Speed is our middle name. We aim to close your loan in 3 weeks or less, given no 3rd party delays.

Rates starting at 6.25%

We live, eat and breathe DSCR. It's our specialty, and that's reflected in our low rates.

Appraisal Certainty

We pre-approve all our loans prior to ordering the appraisal, so that you can have the certainty you need when ordering.  

Lifetime client benefits

When you do a loan with us, get access to exclusive real estate market and interest rate updates.

Get a loan from your sofa

The entire loan process can be done from the comfort of your home.

DSCR is our bread & butter, we have options.

Up to 80% LTV for cash out refis
Up to 85% LTV for purchases
Options with no points
Options with no prepayment penalty
Interest only or fully amortized
30 or 40 year terms
Vacant properties ok
No Minimum FICO
No Ratio options
Blanket/portfolio loan options
Under 1 DSCR options
Hold title in LLC, as individual, or other business entity

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Our Loan Agents are on standby, waiting to answer any questions you may have and provide an instant quote.

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About DSCR Loans

What is DSCR?

DSCR stands for Debt Service Coverage Ratio. This is a tool that helps a borrower's ability to repay a loan by evaluating the property's monthly rental income.
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DSCR is a straightforward method of measuring cash flow, determined by dividing the monthly rent by the total monthly costs, which include the principal, interest, taxes, and insurance (together known as PITIA).

For commercial and mixed use property, DSCR is calculated by dividing the annual Net Operating Income (NOI) by the annual debt service (PITI). The difference with this approach is you are including the other operating expenses like utilities, maintenance, management fees, janitorial services, etc.

How do I calculate DSCR?

To calculate the DSCR, divide the subject property's rental income by the monthly PITI (principal, interest, taxes, and insurance). Here is what the calculation looks like:


Keep in mind that for commercial and mixed use properties they use Net Operating Income divided by PITI.

Why investors should consider DSCR Loans

Minimum Down Payment
‍DSCR loans, also known as investment property loans, Non-QM loans, or rental loans, have become very popular lately. But why all the buzz? While investors can still get traditional loans or funds from small banks, these options are difficult to qualify for and require significant cash reserves. DSCR loans are made for real estate investors and use the rental income from the property to help qualify for the loan. Let’s break it down.

Based on the Property's Rental Income, Not Your Income
‍Experienced real estate investors or self-employed people without W-2s often have trouble meeting the strict requirements of conventional loans. These loans require good credit, high reserves, and proof of income. They are also underwritten using a Debt-to-Income (DTI) ratio, which compares your personal debt to your personal income. If you’re trying to get a loan for a rental property, the payment for that loan is included in your DTI calculation. You might be able to offset this new payment with rental income, but it depends on how well you can prove the expected rent. Investors with extra income from other sources might cover the gap in their DTI, but self-employed investors or those with multiple mortgaged properties might not have the extra income to make up for it. DSCR loans don’t use DTI at all. Instead, they look at the property’s rental income compared to the loan payments, making it easier for investors to qualify.

Borrow Through an LLC or Entity
‍Many investors prefer to borrow through an LLC or corporation to keep their personal information private and protect their other assets. This helps shield their personal assets in case something goes wrong with the property. Conventional loans can only be taken out in an individual’s name, but DSCR loans allow you to borrow through an LLC or other business entity.

‍DSCR Lenders Are More Flexible on Property Limits
‍With conventional loans, even if an investor can afford to take on several mortgages, they can only get loans for up to ten properties. Most DSCR lenders don’t have a set limit, instead looking at the total amount of credit the investor is exposed to and using common-sense guidelines.

Require Less Documentation
‍Conventional mortgage loans usually require a lot of paperwork, including pay stubs, bank statements, and tax returns. Underwriters thoroughly review your financial history, which can take time. Missing documents can cause delays. DSCR loans, however, focus more on the property’s value and rental income, as well as your credit. As a result, there is less paperwork needed. Most DSCR lenders won’t ask for proof of income, employment, or assets (except for liquid reserves).

What are the requirements?

While it is best to discuss your specific scenario with one of our Loan Agents, here are some general requirements:

Minimum Credit Score
We can go as low as 600 credit, even though most DSCR lenders only go as low as 660 or 680. Most lenders also have a minimum tradeline requirement (amount and duration) reporting on your credit report, and also will consider if you have significant credit events, such as bankruptcies, foreclosures, and recent mortgage lates. Some lenders also require charge offs and collections be paid off prior to closing, although we do not require this.

If you don't meet the credit requirements for a DSCR loan, you may be a better fit for our Hard Money loan option.

Minimum Down Payment or Equity
We can go as high as 85% LTV on purchase loans, and 80% LTV on refinance, depending on the property type, credit and DSCR ratio.

Minimum Property Value
We have a minimum property value of $100k. If you own multiple investment properties worth over $50k, ask us about our blanket loan option.

Minimum Loan Amount
Most lenders have a minimum loan amount of $100k. We can go as low as $75k.

What to look for in a DSCR Lender

When comparing DSCR loan lenders, it’s important to consider the following:

‍What are the lender’s rates and fees?
It’s essential to understand the full cost of the loan upfront. You don’t want to be caught by surprise with unexpected expenses at closing. Most lenders charge an origination fee, along with other administrative fees like underwriting and documentation fees. Additionally, be aware of any prepayment penalties, especially if you plan to sell the property soon after purchasing it. Most importantly, make sure you are dealing with a reputable lender.
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Is the lender experienced in working with investors?
In our opinion, this is the most important factor to consider. Lenders who specialize in working with investors tend to have a better understanding of the unique needs and challenges of investment financing. As the market for DSCR loans grows, it’s helpful to look for lenders with experience. Here are some questions to ask potential lenders:
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-How many DSCR loans have they closed?
-How long have they been offering DSCR loans?
-Do they have a dedicated team that processes and underwrites DSCR loans?
-What are their property insurance requirements (they may differ for investment properties versus owner-occupied properties)?
-Do they have prepayment penalties or rate buy-down options? Keep in mind that most DSCR loans include a prepayment penalty.
-Do they allow financing through an LLC or corporate entity?

Choosing a lender who has a solid track record and a specialized focus on real estate investors can make a big difference in the loan process.

What property types are eligible?

While this may seem straightforward, it can vary between lenders. Some lenders offer DSCR loan programs for vacation rentals, while others do not. Other variations include whether the lender finances warrantable versus non-warrantable condos, or multi-family homes versus single-family properties. Be sure to confirm that your specific property type is eligible for financing with the lender you choose.

At Trulo Mortgage, all property types are considered, including 1-4 residential, 5+ multifamily, commercial, and mixed use. The only property types we try and stay away from is special use commercial property. This is going to be commercial property that serves a special narrow purpose or can only be used by a specific type of business, such as gas stations and churches.

Are rural properties eligible?

Yes! We can do DSCR loans for rural properties. There may be certain acreage limits, and the property can't be used for agricultural business purposes.

It is also important to consider that depending on how rural the property is, finding an appraiser or nearby comps may create a seperate issue.

Is there a pre-payment penalty? How does it work?

While it is best to discuss your specific scenario with one of our Loan Agents, here are some general requirements:

How does a "rate buydown" work?

We offer four common ways our clients use our DSCR Loan product:

1. Cash-Out Refinance
2. Rate & Term Refinance
3. Purchase

1. Cash-Out Refinance Loan
Cash-out refis are the most popular use of our DSCR loans. In a cash-out refinance, you replace your existing mortgage with a new, larger loan, and the difference is given to you in cash, minus closing costs. You can also do a cash out loan on a property that is currently free and clear.

Clients often use cash-out refis for:

-Renovating an existing rental property
-Buying additional investment properties
-Financing a property flip

‍Rate & Term Refinance
A rate & term refinance involves refinancing an existing loan to get a better interest rate or terms. Many investors use hard money or fix-and-flip loans to purchase and renovate distressed properties. After completing the renovations, they convert the property into a rental and refinance into a DSCR loan for long-term, permanent financing.

‍Purchases
A purchase loan is used when buying a new property. Investors commonly use DSCR loans to purchase properties that are already rented or that are ready to be rented.

If you are purchasing a property that needs rehab, you should consider our Fix & Flip Bridge Loan product.

What if the property is vacant?

Good news! Your property is still eligible if it is vacant, as long as it is still in a livable condition. This applies to purchases, refis, and cash outs. Most lenders require the property to be tenant occupied for a refinance. We do not! Reach out to your Loan Agent to see if there will be any additional requirements or limitations based on your scenario.

How is the DSCR calculated on a vacant property?
We use a specific type of form ordered with our appraisal reports where the appraiser will also provide a report with a projection of the monthly rental income, based on comparable rental properties in your area.

Is my AirBNB or Vacation Rental eligible?

Yes! We allow short term rental income for our DSCR loans. Reach out to your Loan Agent for more details.

What if my DSCR is under 1.00?

Yes! We allow short term rental income for our DSCR loans. Reach out to your Loan Agent for more details.

Didn’t find the answer you are looking for? Contact our Sales Team

Learn about our Referral Program.

Know someone who may benefit? Call now or submit the form and one of our Loan Agent's will reach out about or referral program.

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Loan Programs

Real Estates Loans

Bridge loans
Fix & Flip
New Construction
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Small Business Loans

Bridge loans
Fix & Flip
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Other Loan Programs

‣ REAL ESTATE LOAN PROGRAMS

Hard Money

No minimum credit score requirement and no income verification for investment property and business purpose loans. These loans are primarily property/asset based loans and require typically 30-35%+ equity (65-70% LTV or less).

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Bridge Loans

Fast funding with minimal underwriting guidelines. Acquire property or get cash out with speed and flexibility while you are arranging long-term, permanent financing. These are short term 1-5 year loans with no prepayment penalty.

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Fix & Flip

Get financing for both the purchase and rehab costs. Up to 90% purchase and 100% rehab financing for properties that need renovation. Get the cash you need to get into a property quickly with no income requirement. Instead of determining financing based on the as-is value, these loans are based on the After-Repair-Value, allowing for a higher leverage than traditional loan products.

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Ground Up Construction

Get up to 100% financing for construction costs. These loans require 20-30% of construction costs in liquid reserves and disburse funds incrementally as each stage of the construction is completed. Once the construction is done, the loan can be refinanced to long term financing.

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Conventional Commercial

Up to 80% LTV for non-owner occupied and up to 90% LTV for owner occupied commercial, these are "full doc" long term loans that require a full business income analysis and typically have the lowest rates as a result. Other commercial options with limited income requirements include qualifying based on our Lite Doc, No Doc, and Bank Statement Program. Inquire for details.

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SBA 7(a)

These loans can be used for real estate, equipment, working capital, or inventory and are partially insured by the U.S. Small Business Administration. Businesses must have established credit and a minimum 2 years in business (Minimum 1+ year and start-ups allowed on case-by-case). These loans can also be used to purchase an existing business.

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Quick funding. Streamlined process.

Fast, easy approval. Low docs.

Forget searching for pay stubs and old tax returns, our tech driven minimizes manual tasks to streamline the process.

Competitive rates.
Variety of loan options.

Aggressive rates, high leverage, and flexible loan options allow you to make offers or capitalize your business quickly.

Supporting you every step of the way.

We provide consultative guidance throughout the process to find you the best option, answering questions and addressing concerns.

Our customers love for us

"The team has been so accommodating in helping me understand what loan option works best for me. Will definitely work with them in the future."

Joshua Ticsay

"Truly had an amazing experience with the Trulo team. They were super fast and didn't ask for too much from me. Looking forward to using them on my next transaction!

Wendy McPherson

"The team did a great job and got it done quickly. They always answered my calls and always kept us updated. Not to mention were able to get us approved very quickly.

Patricia Young

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The Process

We make things simple and streamlined to make sure you get the funding you need as quickly as possible.

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Get Quote

We only need a few key details to send over an initial loan offer for your review. Once received, a Loan Agent will reach out to discuss your goals and customize the terms to match your needs.

Apply

Once you decide to move forward, we will collect the application and initial documents needed based on the specific loan program and submit the loan to underwriting.

Approval

Underwriting will review your application and let us know if anything further is needed.

Funding

Once all of the conditions of the loan have been met, you will review and sign the final closing documents and your loan will be funded.

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