REAL ESTATE INVESTOR FINANCING
A 30-year fixed-rate DSCR loan with fully amortizing principal + interest payments. Designed for investors who want a traditional long-term fixed payment structure and access to the maximum-leverage core DSCR platform.
Maximum leverage and actual terms depend on the borrower, property, transaction, state, and applicable capital source. Core program terms are shown below; alternative financing options may be available for transactions outside these parameters.
For residential DSCR underwriting, the applicable qualifying rent is compared against the qualifying housing expense: DSCR equals qualifying rental income divided by PITIA — principal, interest, property taxes, property insurance, and HOA or association dues where applicable, plus other applicable property-specific housing obligations. A ratio at or above 1.00 means the qualifying rent approximately equals the qualifying housing obligation. The core program includes scenarios down to 0.75x DSCR, so a property does not necessarily have to fully cover its housing payment to qualify. Below 0.75x, Green Fire's Flexible / No-Minimum-DSCR options may be reviewed instead of an automatic denial.
1.25x and above is strong coverage; 1.00x–1.24x is positive coverage; 0.75x–0.99x is the core low-DSCR range; below 0.75x routes to Flexible / No-Minimum-DSCR programs for review. A property does not have to fully cover its housing payment to qualify on the core program, and leverage is not identical at every DSCR — stronger coverage generally supports stronger terms.
For an existing leased rental, current lease income may be used. For a purchase or vacant property, a market rent analysis from the appraisal or Form 1007 may be used. For a short-term rental, program-supported STR projections such as AirDNA or similar market-supported rental analysis may be used depending on the transaction. The lower of actual rent and applicable market rent may be used depending on program methodology, so the highest available rent projection is not automatically accepted.
660 is the current core minimum guideline. A score simply meeting the minimum does not necessarily receive maximum leverage or best pricing — higher credit generally improves pricing and program flexibility, and scores above approximately 740 generally access stronger pricing than borrowers near the minimum. Scores in approximately the 660–700 range may need stronger compensating factors such as lower LTV, higher DSCR, greater liquidity or reserves, stronger mortgage history, a stronger property profile, or more investor experience. No approval is based solely on FICO.
First-time rental investors may qualify — prior rental-investment experience is not universally required. For first-time investors, underwriting may place additional emphasis on credit, reserves, property cash flow, housing-payment history, property condition, rental strategy, and overall file quality. Owning a primary residence may strengthen a first-time-investor file, but lack of homeownership is not represented as an automatic disqualifier unless the final program requires it.
Purchase: maximum core leverage can reach up to 85% LTV on qualifying transactions. Rate-and-term refinance: used to replace existing financing without materially increasing the balance for equity extraction; leverage may be lower than maximum purchase leverage depending on the current program. Cash-out: allows the investor to access property equity, with leverage generally tighter than purchase leverage — commonly in approximately the 70–75% range depending on the borrower, property, and program. 85% is not the universal cash-out LTV; the final cash-out amount depends on appraised value, existing payoff, credit, DSCR, property type, seasoning, and program requirements.
1. Current property value is established. 2. Existing loan payoff is obtained. 3. Qualifying rent is documented. 4. DSCR is calculated using the proposed new loan. 5. Credit, reserves, and title are reviewed. 6. Existing debt is paid at closing. 7. Remaining allowable proceeds are disbursed as cash out. Common investor uses include the next acquisition, portfolio reserves, other property renovations, paying off higher-cost short-term financing, or completing a BRRRR cycle.
DSCR transactions generally require a property valuation or appraisal because the program needs current property value, market rent or Form 1007 when applicable, and property condition information. For cash-out refinances specifically, the appraisal establishes the value supporting the new loan amount. The Bridge no-appraisal rule does not transfer to DSCR.
Three concepts matter: title seasoning (how long the borrower has owned the property), rent seasoning (how long income or lease history has existed), and refinance seasoning (how long since acquisition or prior financing). Exact requirements vary by transaction and program — rate-term refinances may have different seasoning from cash-out, certain programs allow very limited or day-one seasoning, others require several months, and recently renovated properties may require documentation supporting the new value. BRRRR transactions may transition into DSCR once renovation is complete and the property meets applicable rent-ready and underwriting requirements. There is no single universal waiting period.
A common use of DSCR is refinancing a stabilized property out of Fix & Flip financing, Bridge financing, or other short-term hard money. The property typically needs to be rent-ready, within applicable LTV guidelines, supported by qualifying rent, and compliant with applicable seasoning requirements. This is the permanent-loan portion of a common BRRRR strategy.
The core DSCR program offers flexible prepayment structures, which can include 5/4/3/2/1 step-down, 3/2/1 step-down, other shorter prepayment periods, or no-prepayment-penalty options. Taking a prepayment penalty can improve pricing; choosing no prepayment penalty can result in different pricing. The correct structure should match the borrower's expected hold period.
DSCR pricing is affected by credit score, DSCR ratio, LTV, property type, loan amount, prepayment structure, loan term, interest-only selection, transaction purpose, market pricing, and state or property location where applicable. Higher credit, higher DSCR, and lower LTV may generally improve pricing. No permanent current rate is published here because rates change frequently.
Single-family rentals, condos, townhomes or PUDs where eligible, and multifamily residential properties up to 10 units. Long-term and short-term rentals. Investment purpose only — no owner occupancy. DSCR investor programs are for business-purpose, non-owner-occupied investment properties.
Foreign-national options are available. Qualification can be based on the property rather than U.S. employment income, with additional borrower documentation possibly required, including passport, visa or residency documentation, entity documentation, and other international borrower documentation required by the actual program. Identical pricing or leverage for domestic and foreign-national borrowers is not promised.
Government-issued identification, entity formation documents, purchase contract for an acquisition, current lease where applicable, rent roll for multifamily where applicable, property insurance, property tax information, current mortgage statement or payoff for a refinance, appraisal or market-rent documentation, proof of reserves or liquidity when required, short-term-rental history or market-supported STR projection where applicable, title documents, and foreign-national documents where applicable. W-2s and tax returns are not requested as standard DSCR income qualification unless a specific alternative program requires them.
Read the educational guide for a deeper, plain-English walkthrough of the mechanics, money flow, and tradeoffs.
Read the GuideEstimate leverage, payments, or coverage before submitting your deal. Illustrative program calculation only — not an approval, offer, or financing terms.
Open CalculatorInvestment and business-purpose transactions only. No owner-occupied consumer financing. Programs, eligibility, leverage, rates, fees, terms, timelines, and availability vary by property, location, borrower qualifications, documentation, and deal structure. All financing is subject to underwriting and final approval. Green Fire Strategies does not guarantee approval, terms, closing, or funding.
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