DSCR loans in New Jersey
Buying your first rental, growing a portfolio or refinancing an investment property? Qualify on what the property earns, not on your personal income.
What a DSCR loan is
DSCR stands for debt service coverage ratio. It measures whether a property's rental income covers its monthly housing costs: principal, interest, taxes, insurance and association dues where they apply. Because the decision rests mostly on the property's cash flow, your personal income matters much less.
Program at a glance
- Loan amounts
- $100,000 to $5,000,000
- Credit score
- From 550; 660+ may qualify for up to 80% LTV, 720+ for up to 85% LTV
- Property types
- Single-family, 2 to 4 units, multifamily up to 25 units
- Rural property
- Eligible, up to 25 acres
Higher credit scores generally give access to better pricing and higher leverage.
Who it's for
- Real estate investors, first-time or experienced
- Self-employed borrowers and LLC owners
- Foreign nationals and ITIN borrowers
Many lenders want years of landlord experience before they'll finance a rental. This program doesn't: you may qualify for your first investment property without it. Rent-free living arrangements are acceptable for borrowers who aren't first-time investors, which helps if you've lived with family or in employer-provided housing.