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Investment Cash-Out, Simplified
theSecond now offers DSCR as an eligible documentation type for Closed-End Second (CES) investment property cash-out transactions, available immediately as a stand-alone product.
We focus entirely on the subject property and its income. If the property's rental income equals or exceeds the proposed mortgage payment, the property qualifies. No personal income documentation is required.
Qualifying is straightforward, bring your investment property, its rental income, and a 680+ FICO score. We'll handle the rest.
Loan Highlights
Key program parameters for theSecond DSCR. Refer to theSecond Matrix 06.01.26 for the complete CLTV grid and full eligibility details.
Transaction Type
Stand-alone cash-out only for investment properties. Not available for purchase or rate/term transactions.
Eligible Rental Income
Long-term rental (LTR), short-term rental (STR), and ADU income all count toward DSCR qualification.
Investor Experience
Minimum 12 months owning or managing investment real estate within the most recent 36 months is required.
Loan Amount
$75K – $750K
Minimum $75,000 · Maximum $750,000. Sized for a broad range of investment property values.
Fixed Rate Terms
4 Options
Fixed rate only. Choose from 10, 15, 20, or 30 year terms to match your investment horizon.
Min FICO / Max CLTV
680 / 80%
CLTV ranges 55%–80% based on loan amount & FICO tier. See full matrix for complete grid.
How We Qualify the Loan
We take the gross rents, based on the lesser of market rents or the lease agreement, and compare them to the proposed full PITIA payment on the second lien.
If the rental income equals or exceeds the mortgage payment, the property qualifies. No W-2s, pay stubs, or tax returns required, just the property's numbers.
Gross Rents ÷ PITIA ≥ 1.00
Minimum 12 months owning or managing investment real estate within the most recent 36 months is required.
Who Qualifies
Eligible
- Experienced Investors
12+ months owning/managing investment real estate in the prior 36 months
- LTR Income
Long-term rental income counts toward DSCR calculation
- STR Income
Short-term rental income (Airbnb, VRBO, etc.) is eligible
- ADU Income
Accessory dwelling unit income is eligible for qualification
Ineligible Borrowers
- First-Time Investors
No prior investment real estate experience in the last 36 months
- First-Time Homebuyers
Not eligible under theSecond DSCR program
- Non-Permanent Resident Aliens
Not eligible under theSecond DSCR program
- Foreign Nationals
Not eligible under theSecond DSCR program
Get an Estimate
Receive a personalized loan estimate for theSecond DSCR program. No obligations, no charges, just answers for your investment property scenario.
Answer a few quick questions and allow us the opportunity to show you how theSecond DSCR can work for you.
Frequently Asked Questions
What is theSecond DSCR loan and how does it differ from a traditional second mortgage?
theSecond DSCR is a Closed-End Second (CES) lien that qualifies on the investment property's rental income alone, no personal income, W-2s, or tax returns required. Unlike a traditional second mortgage that uses your debt-to-income ratio and employment history, theSecond DSCR uses the property's Debt Service Coverage Ratio (gross rents ÷ PITIA). A DSCR of 1.00 or greater means the property covers its own payment and qualifies.
What is the minimum DSCR and how is it calculated?
The minimum DSCR is 1.00. It's calculated by dividing the property's gross monthly rental income by the full PITIA (Principal, Interest, Taxes, Insurance, and Association dues). For example: $3,500 gross rents ÷ $3,200 PITIA = 1.09 DSCR, which meets the minimum. If the ratio falls below 1.00, the property does not qualify under the DSCR documentation type.
What types of rental income count toward the DSCR calculation?
Long-term rental (LTR), short-term rental (STR), and ADU (Accessory Dwelling Unit) income are all eligible. For STRs, lenders use an appraisal-based market rent analysis or documented platform income. For LTRs, the lesser of the existing lease or market rent is used. ADU income on the subject property is counted alongside primary unit income.
What experience is required to qualify as a borrower?
Borrowers must have a minimum of 12 months owning or managing investment real estate within the most recent 36-month period. First-time investors, first-time homebuyers, non-permanent resident aliens, and foreign nationals are not eligible for theSecond DSCR program.
What are the FICO and CLTV requirements?
Minimum FICO is 680, using the lowest representative score across all borrowers. CLTV ranges from 55% to 80% depending on loan amount and FICO tier, a higher FICO unlocks a higher CLTV ceiling. Loan amounts range from $75,000 to $750,000. Refer to theSecond Matrix 06.01.26 for the full FICO/CLTV grid.
Is a prepayment penalty required on theSecond DSCR?
Yes, a minimum 1-year prepayment penalty is required. However, certain states do not permit prepayment penalties, loans in those states are still eligible to originate without one. Refer to theSecond Matrix 06.01.26 for the complete state-by-state list of PPP availability.