DSCR Program Catalog: Six Loan Structures Explained

How to read this catalog

Every DSCR loan starts from the same idea: compare the property’s rent with its full monthly housing payment (principal, interest, taxes, insurance and any association dues). What changes from one structure to the next is how that comparison is made, how strict the threshold is, and which borrowers and properties the program was designed for.

Card numbers (P-01 through P-06) are only a filing order, not a ranking. Guidelines differ across wholesale lenders and change over time, so treat each card as a description of a structure rather than a quote. When you want specifics for a property, send us the scenario.

P-01Standard DSCR LoanA standard DSCR loan qualifies a business-purpose rental property by comparing its rental income to its full monthly housing payment. Personal income documents such as tax returns and pay stubs are generally not used. It is the reference point against which every other structure in this catalog is measured.Tends to fit: Investors with rentals that cash flow on their own P-02No-Ratio DSCR LoanA no-ratio DSCR loan allows a business-purpose rental to qualify without meeting a minimum coverage ratio, including cases where the ratio falls below 1.00. Wholesale lenders that offer it typically offset the added risk with compensating factors such as stronger credit, a larger down payment, and deeper reserves.Tends to fit: High-cost markets or properties bought for appreciation P-03Interest-Only DSCR LoanAn interest-only DSCR loan begins with a period in which the monthly payment covers interest but not principal, then converts to a fully amortizing payment for the remaining term. Some wholesale lenders calculate coverage on the interest-only payment and others on the amortizing payment, which can change whether a property qualifies.Tends to fit: Investors maximizing early cash flow on a rental P-04Foreign National DSCR LoanA foreign national DSCR loan allows a non-U.S. resident to finance a U.S. investment property based primarily on the property's rental income. Because many applicants have no U.S. credit history, wholesale lenders rely on identity documents, foreign credit references, U.S. banking, and reserves to evaluate the file.Tends to fit: Non-U.S. residents buying American rental property P-055-10 Unit DSCR LoanA 5-10 unit DSCR loan finances small apartment buildings using a streamlined, residential-style coverage test rather than a full commercial underwriting process. Wholesale lenders typically rely on a rent roll, leases, and an appraisal to measure whether the building's income carries the debt.Tends to fit: Investors stepping up from one-to-four unit rentals P-06Short-Term Rental DSCR LoanA short-term rental DSCR loan qualifies a furnished investment property based on income from nightly or weekly stays rather than a traditional long-term lease. Wholesale lenders typically rely on the property's booking history or a third-party market data report, and local ordinances and permits play a significant role in eligibility.Tends to fit: Investors operating furnished vacation or nightly rentals

Quick index

Program	Qualifying basis	Tends to fit	Watch for
P-01Standard	Property rent compared against the full monthly payment	Investors with rentals that cash flow on their own	Ratio must usually clear the wholesale lender's minimum
P-02No-Ratio	No minimum ratio; compensating factors carry the file	High-cost markets or properties bought for appreciation	Negative monthly cash flow the investor must cover
P-03Interest-Only	Rent versus payment; IO or amortizing basis varies by lender	Investors maximizing early cash flow on a rental	Payment increase when the interest-only period ends
P-04Foreign National	Property rent versus payment, plus foreign borrower review	Non-U.S. residents buying American rental property	Funds transfer timing and U.S. bank account setup
P-055-10 Unit	Building rent roll compared against the full monthly payment	Investors stepping up from one-to-four unit rentals	Appraisal complexity and vacancy assumptions
P-06Short-Term Rental	Projected or historical short-term income versus payment	Investors operating furnished vacation or nightly rentals	Local ordinances, permits, and seasonal income swings

For the full side-by-side view, including documentation and leverage notes, see the comparison table.