DSCR financing
Qualify on property cash flow.
How lenders score rental income.
DSCR loans qualify on property cash flow — net rent divided by PITIA. Personal W-2 income may be secondary, which suits self-employed and portfolio investors. Minimum ratios typically range from 1.0 to 1.25 depending on lender and property type.
Non-warrantable condos
Portfolio lenders may finance projects agency lenders avoid — expect higher rates, lower LTV, and shorter terms. Litigation, low owner-occupancy, and reserve deficiencies trigger non-warrantable status on South Florida towers.
File preparation
Submit market rent support, HOA rental rules, insurance quote, and entity documents together. Incomplete files sit in queue while contract dates slip — Palazzo Mortgage coordinates DSCR with acquisition diligence in parallel.
Seasonal rent on DSCR files
Lenders may haircut seasonal furnished income or require 12-month lease history. If your strategy depends on Q1 peak rents, confirm the lender's vacancy assumption before you remove financing contingencies.
Entity and guarantee structure
Most DSCR programs require LLC vesting with personal guarantee on carve-outs. Form entities after lender counsel review — incorrect vesting delays closing and can void rate locks.