What is the difference between A. Conventional Rental Income Investment Property Loan Vs. B. DSCR Loan ?

Great question, GV! Two different documentation types:

Full documentation gets the better rates: income taxes, paystubs, etc, so the borrower's earned income is the basis for underwriting.
DSCR= debt service coverage ratio. When I can't get the customer qualified going full documentation, this is a good one b/c I don't need taxes. Basically, if the rental property's income covers the full payment, we have a loan. Actually, the rent has to cover 75% of the payment.

There are other minor things that go along with the above, but that's jist of it. Realize DSCR is only for investment properties.

Joel Richardson Lender

	Joel Richardson VP Branch Manager phone: 512-203-8244 email: Joel.Richardson@fcmhomeloans.com

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