Debt-service coverage ratio loan (DSCR)

Whether you are looking to purchase your first rental property or are wanting to grow your existing portfolio, Quontic may be able to help make the process of buying an investment property easy. As a Community Development Financial Institution (CDFI), we can look at the prospective cash flow of the property and your good credit to determine if you qualify for our DSCR loan.

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What you need to know about DSCR loans

How is DSCR different?

Quontic’s DSCR loan is different from other DSCR loans in that:

Why is DSCR important?

A lender needs to know your debt-service coverage ratio to determine if the investment property’s potential income will be enough to repay the loan. Since Quontic requires a minimum DSCR of 1.00x, the property will qualify for a DSCR loan if the rental income generated from it is greater than the proposed loan payment.

How is DSCR calculated?

At Quontic, we calculate DSCR by dividing the gross rental income minus the real estate taxes, insurance and HOA fees (if applicable) by the proposed principal and interest payment.

What types of properties are eligible for DSCR?

Property types eligible for DSCR include single-family homes, 2-4 family units, planned unit developments (PUDS), condos and condotels.

Loans designed for real estate investors

Qualify using subject property income ONLY
100% gift funds allowed for down payment and closing costs
Available for condo and condotel properties

Recognized as a top mortgage lender

Quontic’s loan officers help make the loan process simple and seamless. With mortgage experience across multiple loan programs spanning decades, they are a diverse and multi-lingual team ready to walk you through each step of the mortgage process. And with hundreds of 5 star reviews from our customers, you can trust you’ll get a customized experience that makes your purchase or refinance goals a reality.

Mission driven & federally certified

As a federally chartered digital bank and US Treasury designated Community Development Financial Institution (CDFI), we’re one of only a few mortgage lenders that can offer these types of home loans. Our mission is to level the lending playing field by making mortgages more equitable for communities that need them. Learn more about our unique CDFI designation here.

Frequently Asked Questions

DSCR or Debt-Service Coverage Ratio loans are great for borrowers who are:

  • Seasoned or first-time investors
    • First-time investors can ALSO be first-time homebuyers
  • Self-employed borrowers with many businesses
  • Entrepreneurs
  • Retired
Quontic offers DSCR loans for up to $2,000,000 for qualified applicants.
To qualify for Quontic’s DSCR loan, you’ll need to demonstrate the ability to repay with a DSCR of 1.00x or higher, good credit history, and a down payment of at least 25%.
To qualify for a DSCR loan from Quontic, you will need a minimum FICO score of 680.

Yes. Unlike some of our competitors, Quontic does accept first-time homebuyers for our DSCR loan.

Yes. Quontic does provide DSCR loans for condo and condotel properties.

Disclaimer:

1All lending products are subject to approval. Rates, program terms & conditions are subject to change without notice. Not all products are available in all states or for all amounts. This does not represent an offer to enter into a loan agreement. Other requirements, restrictions & limitations apply. Information is accurate as of December 12, 2022 & is subject to change without notice.

2The Federal Housing Agency based on single unit as of January 1, 2022
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