You have run the numbers on the property twice and they work. What you cannot get a straight answer on is the loan.
Here is the whole rulebook, from CMG Financial's Non-QM Sharp Series guidelines (NMLS #1820, revised 09/21/2026).
The basics
What is a DSCR loan? A business purpose loan on a non-owner-occupied property that qualifies on the property's income rather than yours. No personal income is used to qualify.
How is DSCR calculated? DSCR = Gross Rental Income / PITIA on an amortizing loan, or Gross Rental Income / ITIA on an interest only loan. PITIA means principal, interest, taxes, insurance and association dues.
What rate is it qualified at? DSCR loans are qualified at the original note rate. There is no stress rate added on a standard amortizing file.
What coverage do I need? 0.75x is eligible. There is also a No Ratio option with restrictions. Better coverage buys better leverage, as the grid below shows.
Do I need to verify my employment? No. Borrowers and guarantors who do not provide adequate employment verification are still eligible for the program.
The rent number
Which rent do they use? The lower of the executed lease agreement or the market rent from the appraisal.
What if my lease is higher than the appraisal says? It may be used, with sufficient evidence of receipt. The three most recent consecutive months should be provided.
Can I finance a vacant property? On a purchase, yes. Vacant properties are not eligible for refinance, with one exception: a property currently vacant due to recent renovation or rehab with the intention of being rented soon, supported by the appraiser confirming recent work completed and providing visual evidence. In that case the 1007 market rent schedule may be used.
Can I use short-term rental income? Yes, on purchase and refinance, if it is legally permitted and common for the area as confirmed by the appraisal or property location. It comes with tighter terms: maximum 70% combined loan-to-value, minimum 1.00x DSCR, and a $2,000,000 maximum loan size. Refinances need a full 12 month short-term rental income history.
Leverage
What is the maximum loan-to-value? 80%, and you only reach it at the top of the grid: a 740 or 720 score, a loan at or below $1,000,000, coverage of 1.00x or better, on a purchase or rate and term refinance.
How does the grid work? Leverage drops as loan size rises, as score falls, and as coverage falls. At 740 with coverage of 1.00x or better: 80% up to $1,000,000, 75% to $2,000,000, 70% to $2,500,000 and 65% to $3,000,000 on purchases and rate and term refinances. At 0.75x coverage the same borrower is at 75%, 70% and 65%. No Ratio is lower again.
What is the loan size range? $100,000 minimum, $3,000,000 maximum. Short-term rental files and first-time investor files are capped at $2,000,000.
What is the minimum score? 660. At 660 the grid is materially tighter: 70% on a purchase at or below $1,000,000 with 1.00x coverage, falling from there.
Credit and history
What payment history is required? 0x30x12, meaning no thirty day lates in the last twelve months.
How long after a housing event? Three or more years of seasoning.
Whose housing history is checked? Both the subject property and your primary residence, regardless of whether you are on the note or vested on title. Any additional housing history in the file showing delinquencies is reviewed and must meet the program matrix.
Reserves
How many months? By loan size: three months from $100,000 to $500,000, six months from $500,001 to $1,000,000, six months from $1,000,001 to $2,000,000, and nine months from $2,000,001 to $3,000,000.
Do my other rental properties add reserves? No. Additional financed properties require no reserves on this program. That is a significant difference from most agency investment lending and it is what makes portfolio building practical.
Can cash-out count as reserves? Yes. Cash-out used as reserves is allowable.
Cash-out
Can I take cash out? Yes, with conditions. You must have owned the property six or more months, measured from original acquisition to the subject loan note date.
How much? $500,000 maximum above 60% loan-to-value. Unlimited at or below 60%. Maximum loan amount on a cash-out is $2,000,000.
What can I use the money for? Business purposes only. You must provide a letter of explanation detailing the purpose and use of proceeds. Any loan where cash-out proceeds would be used for personal use is not eligible for the program.
Can I use it to renovate the property? Maintaining the property is acceptable. Major renovations and rehabs are not permitted on the subject property where they could render it uninhabitable.
What do I sign? Rate and term or cash-out refinance borrowers must execute the investor's Business Purpose and Occupancy Affidavit, and all borrowers execute an Occupancy Certification or similar form.
Experience
Do I need to be an experienced investor? The program is for professional investors, defined as having at least twelve months of experience owning or managing income-producing real estate within the most recent thirty-six months from origination.
Can a first-time investor qualify? Yes, if DSCR is greater than 1.0, the credit score is greater than 700, and there are no exceptions on the file. Maximum loan size is $2,000,000, and a first-time investor may not be a first-time homebuyer.
What documentation of experience is needed? A letter of explanation detailing your relevant real estate experience. The investor may request specific documentation to validate it.
Entity and structure
Can I close in an LLC? Yes. Title may be held in the LLC, but the loan application must be made in the individual borrower's name, and all borrowers sign the deed of trust and note as individuals and as authorized signors of the LLC.
Any limits on the LLC? It must be legal in the state of formation, created to manage rental properties only, have no more than four entity owners who are US citizens or permanent resident aliens, and all owners and eligible guarantors must be borrowers on the transaction. Members must be beneficial owners of the property.
Is a personal guaranty required? Yes. Personal recourse is required and borrowers execute a Personal Guaranty Agreement where applicable.
Requirements people forget
Rent loss insurance is required on the subject property and must equal at least six months of local average monthly rents. Blanket policies covering the subject are permitted.
A 1-4 Family Rider and Assignment of Rents, Fannie Mae Form 3170, must be in the origination file.
Declining markets carry a 5% loan-to-value reduction.
2-4 unit properties are capped at 75% loan-to-value and combined loan-to-value, as are warrantable condominiums. Non-warrantable condominiums are capped at 75% loan-to-value.
Builder-related transactions are excluded in two cases: a builder refinance where the builder or an affiliate has built more than four units in the same subdivision, development or condominium project as the subject, and a newly constructed second home or investment property where you have a relationship or business affiliation with the builder, developer or seller.
Interest only is eligible as a 10/20 or 10/30 structure, fixed, with a minimum 700 FICO and a maximum 75% loan-to-value at 1.00x coverage or 70% at 0.75x. It is not permissible on No Ratio.
Related reading
- DSCR and investor property loans, the full index for this topic
- DSCR Loans for Scottsdale Investors: Qualifying on the Property Instead of Your Tax Returns
- How to Calculate DSCR Yourself Before You Write the Offer
- DSCR Credit, Reserves and Rent Loss Insurance: The Requirements Nobody Mentions First
Why bring this file to us
- We answer with the grid in front of us. Leverage on a DSCR file is set by score, loan size and coverage together, not by a single headline number.
- We flag the requirements people forget, including rent loss insurance and the personal guaranty.
- We tell you when conventional is cheaper, because on an early property it frequently is.
- Broker model. Multiple investors rather than one bank's shelf, which is what a file like this needs when the first answer is no.
- You talk to the principal. Ricky Khamis is President of EPiQ Lending and a Certified Mortgage Planner, NMLS #173141, originating mortgages since 1999. Direct line: (480) 999-9842.
EPiQ Lending is NMLS #1936984, at 7975 N. Hayden Road, Suite A-101 in Scottsdale. Verify all of it before you trust any of it: Ricky's EPiQ Lending profile, the Scottsdale branch, and the license itself at NMLS Consumer Access. Hold every lender to that standard, including us.
If your question is not here, send it with the address and the rent. Most DSCR questions have a numeric answer and I would rather give it to you now.
Program figures in this post come from the CMG Financial (NMLS #1820) guideline set named above, as published on the revision date given. CMG Financial is the parent company of EPiQ Lending. These figures describe one investor's program at one point in time. Other investors price and underwrite the same borrower differently, guidelines change without notice, and nothing here is an offer of any specific program or terms. Confirm current eligibility on your own file before you plan around any of it.
Equal Housing Opportunity. This is general information, not a commitment to lend or an offer to extend credit. Rates, terms, and program guidelines change and depend on credit approval, property appraisal, income and asset verification, and other qualifying factors. Not all applicants will qualify. Non-QM, asset-based and business purpose financing carry different pricing, terms and consumer protections than agency financing. Consult your tax advisor regarding the tax treatment of any income or distribution strategy.
Run the coverage ratio before you write the offer
DSCR files are decided by the rent against the payment. Send the address and the rent and I will tell you where the ratio lands before you are committed.
