Why investors use this program
Buy before rents are in place
Refinance or cash out to rehab and stabilize
Replace hard money with longer-term financing
Lower cash in with approved seller carry-back options
When a Standard DSCR Falls Short
Some rental properties do not debt-service today, but the deal still makes sense.
That can happen when the property is vacant, rents are not in place yet cash flow is negative, the asset is mid-rehab, or the investor needs to refinance before the property is fully stabilized.
A No-Ratio DSCR Loan is built for those transitional investor scenarios.
How a No-Ratio DSCR Loan Works
A No-Ratio DSCR Loan does not require the property to meet a standard DSCR test today.
Instead, the loan is based more on the overall scenario, including:
- leverage
- credit profile
- investor experience
- property type
- reserves
- the plan for the asset
This is the lane for deals where the property’s current numbers do not tell the full story.
Who This is For
This program is generally built for:
- experienced real estate investors
- borrowers with past or current rental-property ownership
- borrowers who usually own a primary residence
- borrowers with a 700+ middle credit score
Exceptions may be available in some cases.
Common Ways Investors Use No-Ratio Financing
Buy before rents are in place
Purchase a rental property before lease-up or stabilization.
Refinance or cash out to rehab
Use proceeds to improve the property, stabilize rents, and refinance later.
Replace hard money
Move out of short-term financing into a longer-term structure while the property stabilizes.
Use the portfolio option when needed
For more complex scenarios, a portfolio No-Ratio option may provide added flexibility on leverage or credit profile.
Investor Program Snapshot
Use for
- purchase
- refinance
- cash-out refinance
Leverage
- purchase or refinance up to 75% first-lien LTV
- as little as 10% down in approved portfolio scenarios
- sellers carry-back second available in approved portfolio scenarios
Documentation
- no rental-income verification
- no cash-flow calculations
- no tax returns or proof of income required
Loan Structure
- 30-year fixed or interest-only options up to 10 years
- loan amounts from $250,000 to $5 million
- closings in as little as 2–3 weeks
Property Types
- single-family homes
- condos
- townhomes
- 2-4 unit properties
Title
- LLC
- corporation
- individual name
Lower Cash in with a Seller Carry-Back Second
Need lower cash in for the purchase? In approved portfolio scenarios, the seller may carry a second mortgage to help complete the deal.
Common examples
- 10% down with a 15% seller carry-back second
- 15% down with a 10% seller carry-back second
What investors should know
- Minimum 700 Middle Credit Score
- Minimum 3-year seller carry-back term
- No reserve requirement
- Seller may carry a higher percentage in approved scenarios
- Final structure depends on the property, leverage, and full loan scenario
In simple terms, this option can help an investor buy with less cash in while keeping the deal moving.
What Investors Mean by No DSCR Loan, No-Doc Loan, Stated Income Loan, and No-Ratio DSCR Loan
These terms often get used together, but they are not equally precise.
No DSCR Loan
is the broad phrase many investors search when they want financing without a standard debt-service test.
No-Doc Loan
is an older term investors still use when they think of less paperwork.
Stated income loan
is another phrase some investors search when looking for alternative mortgage options.
No-Ratio DSCR Loan
is the clearest description here because it explains the real issue: the property does not need to meet a standard DSCR test today.
The No DSCR Loan Process
Talk to an investor loan expert
Share the property, your goals, and your strategy. We’ll review your scenario and help you determine whether a No-Ratio DSCR Loan is the right fit.
Get Pre-approved fast
Receive a quick quote and preliminary terms within 48 hours so you can review pricing, leverage, and structure upfront.
Close in as little as 2-3 weeks
Appraisal and final underwriting move quickly, so you can buy, refinance, or cash out without unnecessary delays.
