DSCR LOAN CHECKLIST

✅ DSCR Loan Checklist for Rental Property Investors

Use this checklist to prepare for applying for a DSCR (Debt Service Coverage Ratio) loan to finance your rental property:

🏠 Property Information

• Property address and type (single-family, duplex, etc.)
• Rent roll or lease agreements
• Recent appraisal or estimated property value
• Property insurance details (if available)

📊 Financial Documentation

• 12 months of rental income or projected rental income
• Monthly operating expenses
• Property tax estimates
• Insurance costs
• HOA dues (if applicable)

💳 Borrower Requirements

• Minimum credit score (typically 620 or higher)
• Down payment (usually 20–25%)
• Asset/reserve documentation (e.g. 6 months of PITI)
• Proof of ownership for other properties (if applicable)

🧮 DSCR Calculation

• Net Operating Income (NOI)
• Total Monthly Loan Payment (Principal + Interest)
• DSCR = NOI / Loan Payment (Minimum required usually 1.0–1.25)
• Use a DSCR calculator to estimate before applying

📝 Loan Details

• Preferred loan amount
• Desired term (30-year fixed, interest-only, etc.)
• Whether you want a prepayment penalty
• Loan type (purchase, refinance, cash-out)

📁 Supporting Documents

• Valid government-issued ID
• LLC documents (if buying under an entity)
• Voided check or wire instructions
• Property management agreement (if applicable)

🔄 Optional But Helpful

• Business plan or property strategy
• Prior DSCR loan experience (if any)
• Portfolio overview (if you own multiple properties)

📌 Tip: Have your documents ready and organized — DSCR loans are based on property income, not personal income, so lenders move quickly when paperwork is complete.