Question 1

What is the minimum DSCR ratio I need to qualify?

Accepted Answer

It depends on the lender and program. Many programs look for rent that at least covers the full monthly payment, and some accept a lower ratio with a larger down payment or more reserves. Minimums vary by lender, so we review your scenario. Because a broker can compare several wholesale lenders, a property with a thin ratio may fit one lender's guidelines better than another's.

Question 2

What credit score do I need for a DSCR loan in Georgia?

Accepted Answer

Credit score minimums vary by lender and program, and stronger credit usually means better pricing and more flexible terms. Lenders typically use the middle of your three scores and may also look at credit history. We review your scenario before suggesting a program.

Question 3

How much down payment does a DSCR loan require?

Accepted Answer

It varies by lender, program, credit, the property's DSCR and whether it is a short-term rental. DSCR loans generally call for a larger down payment than a typical owner-occupied loan, and lenders usually require cash reserves after closing. We review your scenario and compare what different lenders require.

Question 4

Can I get a DSCR loan on an Airbnb or short-term rental?

Accepted Answer

Some lenders do. Income for a short-term rental is usually based on platform history, such as Airbnb or Vrbo statements, or on a market-based projection if the property has no rental history. Guidelines vary a lot between lenders, and local short-term rental rules also matter. We compare lender guidelines for short-term rentals before you commit to a property.

Question 5

Can I close a DSCR loan in my LLC?

Accepted Answer

Yes. LLC vesting is allowed on DSCR loans, and many investors hold rentals this way. Lenders typically ask for the operating agreement and EIN letter, and often a personal guarantee from the owners. Some lenders require an entity in certain states. Entity rules differ by lender, which is one reason to compare programs before you decide how to take title.

Question 6

Do DSCR loans have prepayment penalties?

Accepted Answer

Many do, but the structure and length vary by lender and sometimes by the pricing you choose. Common structures include step-down penalties that shrink each year and flat penalties for a set period, and some programs offer shorter or no prepayment periods. If you plan to sell or refinance within a few years, compare prepayment terms as carefully as the rate.

Question 7

How is DSCR calculated? Can you show an example?

Accepted Answer

DSCR equals the property's monthly rent divided by its full monthly payment, including principal, interest, taxes, insurance and any HOA dues (PITIA). Example, for illustration only and not a loan quote: rent of $2,400 a month against a total monthly payment of $2,000 gives a DSCR of $2,400 ÷ $2,000 = 1.20. Lenders set their own rules for which rent figure they use, such as the lease or the appraiser's market rent estimate.

Question 8

Do I need tax returns or proof of income for a DSCR loan?

Accepted Answer

No. DSCR lenders qualify the loan mainly on the property's rental income, so there are no W-2s, tax returns or pay stubs to document. Credit, reserves, the appraisal with a rent analysis, and other lender requirements still apply, and you will usually provide ID, bank statements, the purchase contract and entity documents if you are closing in an LLC.

Question 9

Is it better to use a mortgage broker or go direct to a DSCR lender?

Accepted Answer

Neither is always better. Going direct can work when you already know one lender's program fits a straightforward rental. A broker can be the better route when you want several lenders to compete for your file, when the property has a wrinkle such as a short-term rental, a thin DSCR or LLC vesting, or when the best-fit lender only works through brokers. Whichever route you take, ask for written terms and compare rate, points, fees and prepayment penalty side by side.

Question 10

Do you offer DSCR loans in South Carolina?

Accepted Answer

Yes. We arrange DSCR loans on investment properties in Georgia and South Carolina, including Savannah, Atlanta, Augusta, Charleston, Columbia, Greenville and Myrtle Beach. This is not a commitment to lend; all loans are subject to lender approval and program guidelines.

DSCR Loans in Savannah, GA, from a Local Broker

Frequently asked questions

Can I get a DSCR loan for a short-term rental in Savannah?

Can I close a DSCR loan in my LLC?

Do you arrange DSCR loans for South Carolina investment properties?

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