INVESTOR GUIDE · FIRST-TIME INVESTORS
First-time investor DSCR loans
Yes, you can get a DSCR loan on your first investment property. Here’s how. Your experience won’t keep you out. The property’s rent does the qualifying.
The short answer
- Lots of lenders do DSCR loans for first-time investors.
- Some lenders will even work with first-time home buyers. The list is shorter, but we can get it done.
- What matters: the property’s rent, your credit, and your down payment and reserves.
WHAT LENDERS LOOK AT
What qualifies a first-time investor
- The rent. The property needs to cover its payment, a 1.00 DSCR or better. Check it in our DSCR calculator.
- Your credit. Pricing improves in buckets, and the best rates start at 760.
- Your rental history. No track record as a landlord? If we can show you pay your rent on time where you live now, the lender will consider that in underwriting.
- Reserves. On a purchase, lenders want 3 to 6 months of sourced and seasoned reserves belonging to the personal guarantor. As a first-time investor, they may ask you for a little more on the reserves side.
- Down payment. We can also use down payment help from a family member, which is unique for an investor loan.
THE SHORT VERSION
Experience isn’t the barrier you think it is
We go to lenders that allow first-time investors, and in some cases first-time home buyers too. They exist, and plenty of them do first-time investors. So don’t think your experience is going to limit your ability to jump in and become an investor.
START RIGHT
Set up your first deal like your tenth
Close in an LLC from day one for asset protection and anonymity; see LLC vs. personal name. Then look at the full DSCR loan requirements.
Need a new LLC? We got you. Our dedicated team sets up LLCs with operating agreements designed for your state and for real estate investing.
Referral link: DSCR Kings may be compensated if you use it.
STRAIGHT ANSWERS
First-time investor questions
Do I need landlord experience to get a DSCR loan?
No. Many lenders do DSCR loans for first-time investors. The property’s rent does the qualifying.
Can a first-time home buyer get a DSCR loan?
Some lenders allow it. The list of lenders is shorter, but it can be done.
How much do I need in reserves for my first DSCR loan?
On a purchase, typically 3 to 6 months of sourced and seasoned reserves that belong to the personal guarantor.
KEEP READING
DSCR KINGS · INVESTOR FINANCING
Buying your first rental?
Send us the property. We’ll show you what it qualifies for and which lenders will do it.
Business-purpose loans for investment properties only; not for owner-occupied homes. Lending guidelines, leverage and loan programs vary by lender and by state and are subject to change. Terms and approval depend on the property, the borrower’s credit and capital-partner guidelines and are not guaranteed. Examples are for illustration only.
