DSCR & Cash Flow

No-Ratio / Sub-1.00x DSCR Loan

A specialized DSCR program for properties whose current monthly rent is below monthly PITIA (0.75x–0.99x) or where no ratio is required.

Underwriting Formula / Rule

Minimum Coverage: 0.75x DSCR (or 0.00x True No-Ratio) with 65%–75% Max LTV.

Detailed Credit-Committee Impact & Thresholds

In high-appreciation coastal and Sunbelt metros, 1–4 unit properties often underwrite at 0.75x–0.95x DSCR at acquisition before value-add renovations or STR conversion. No-Ratio DSCR shelves approve these deals based on equity (25%–30% down) and liquid reserves.

2026 Wholesale Benchmark: 19+ wholesale shelves actively fund sub-1.00x DSCR transactions.

Related Underwriting Terms

Debt Service Coverage Ratio (DSCR)Form 1007 Single-Family Comparable Rent Schedule Form 1025 Small Residential Income Property Appraisal Report 5-4-3-2-1 Step-Down Prepayment Penalty 3-2-1 Step-Down Prepayment Penalty Yield Maintenance Prepayment Provision