DSCR Home Loan

What it is

DSCR loans qualify the property rather than the person. For investors whose tax returns show heavy depreciation and expenses, that removes the usual obstacle to conventional financing.

The calculation is straightforward: monthly rent divided by the monthly payment, including principal, interest, taxes, insurance, and any association dues. Most programs need that ratio at 1.0 or better.

Willow Creek Home Finance places DSCR loans on single-family rentals, small multifamily, and short-term rentals, including closings held in an LLC. The variation between investors is wide, so the program that fits one property may not fit the next.

Who it fits

• Investors with strong rental cash flow and complex tax returns
• Borrowers closing in an LLC
• Investors past the conventional financed-property cap
• Short-term rental investors

How it runs

1. 1DSCR CalculationWe divide market rent by the full housing payment to confirm the ratio the program requires.
2. 2ApplyUnderwriting focuses on credit, the property, and reserves rather than personal income.
3. 3Appraise & Rent ScheduleThe appraiser supports market rent with local comparables.
4. 4CloseClosings in an entity are routine on these programs.