From conventional to DSCR, see how investors finance acquisitions, rehabs, and portfolio growth—plus a simple framework to pick the right loan.
Published: November 2025
Hook
Whether you’re house‑hacking your first duplex or scaling a rental portfolio, the right financing can speed up deals and stabilize cash flow.
Common Investor Loan Paths
• Conventional Investment — Standard underwriting for 1–4-unit properties; income/DTI driven.
• DSCR Loans — Approval centered on a property’s Debt Service Coverage Ratio (rental income vs expenses).
• Bank Statement / Asset‑Based — For self‑employed or asset‑rich profiles.
• Renovation / Fix‑and‑Flip — Short-term capital for rehab and resale.
• Portfolio / Blanket Options — Consolidate multiple properties or refinance strategically.
DSCR At A Glance
• Concept: DSCR = Gross Rent ÷ PITIA (principal, interest, taxes, insurance, HOA if applicable).
• Use: Faster acquisitions and refinances where property cash flow leads.
• Notes: Requirements vary by property type, DSCR threshold, reserves, and experience.
What To Prepare
• Leases, rent rolls, or market rent estimates.
• Two‑year property and mortgage history (if applicable).
• Entity docs (LLC/Corp), bank statements, and reserves plan.
• Rehab budgets and timelines for value‑add projects.
6 Moves Smart Investors Make
1) Buy Box — Define target price/rent ranges and neighborhoods.
2) DSCR Scenarios — Underwrite with conservative rent and expense assumptions.
3) Reserves & Liquidity — Keep runway for vacancies and repairs.
4) Rate/Term Strategy — Consider ARM vs fixed, interest‑only vs amortizing.
5) Exit Plans — Hold, BRRRR, 1031 exchange—know your pivot.
6) Documentation — Keep files investor‑ready to shorten closing times.
FAQs
Q: Can I close in an LLC?
A: Many investor programs allow entity vesting; requirements vary.
Q: Do I need landlord experience?
A: Some programs have experience tiers; others allow first‑timers with reserves.
Q: Can short‑term rentals qualify?
A: Often, with specific DSCR or documentation rules by market and program.
Cta
Ready to underwrite your next deal with confidence? Apply with New Wide Lending at /apply.
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Disclaimer:
Subject to credit approval. Not a guarantee to lend. Programs, rates, and terms may change without notice. Licensed in CA, TX, FL & GA. CalDRE #01928649 • NMLS #1339357. Equal Housing Lender.