DSCR Loan: How Much Can YOU Borrow? Rent Decides

$2,400 a month of rent. On a DSCR loan that number is the whole approval, and at 7.25% it buys exactly $267,526 of loan. Not a dollar more, and nothing about you is in the arithmetic. So I ran the ratio backward: from the rent to the loan, from your cash to the price, and through the one page an appraiser fills out on day ten that can move your loan by $29,318 before you've met him. Then every lever priced in dollars of loan, and what a DSCR preapproval actually is. In this video: • The ratio run in reverse: $2,400 of rent, $575 of taxes and insurance, $1,825 for principal and interest, $267,526 of loan at 7.25% • The exchange rate: every $1 of monthly rent is about $147 of loan, every $100 is $14,659 • The 1.25 tier on the same rent: $197,163, and why buying it with cash is a 180-year payback • The two ceilings: the rent caps the loan, your cash caps the price, and the $66,882 crossover between them • Day ten: Form 1007, the lower-of-lease-or-market-rent rule, and $29,318 of loan gone over $200 of rent • The levers, each priced in loan: a quarter point of rate, interest-only qualifying, $100 of insurance, $250 of dues • What a DSCR preapproval is: the borrower half I can do today, and the property half no letter can promise • What I'd tell you across the desk, and the program facts in one breath ⏱️ CHAPTERS 0:00 The rent is the approval 0:42 The ratio, run backward 2:54 The 1.25 tier, and buying it with cash 4:39 The other ceiling: your cash 6:23 Quick word 7:08 Day ten: the appraiser's number 9:26 The levers, priced 11:25 The preapproval, two halves 13:41 What I'd tell you across the desk 15:18 Four numbers to keep 📅 WORK WITH ME — I'm a licensed mortgage loan officer (NMLS 410420) and I write DSCR loans every week. Want to get preapproved before you write the offer, with your rent and your cash run backward the way I did here? Book a free call: https://brokerdave.com/book or email ask@brokerdave.com 🧮 FREE DSCR CALCULATOR — put in the rent and the carrying costs and get your ratio, your cash flow, and the biggest loan that clears 1.00, 1.25 and the lender's cap: https://brokerdave.com/dscr-calculator 📱 SAVE MY CONTACT — https://lurbee.com/c/david-lurvey 📘 MY BOOK — "DSCR Loans Made Simple: The Beginner's Guide to Financing Rental Property." Qualify on the rent, not your paycheck. Kindle + paperback: https://amzn.to/4gRPRDt SOURCES FOR THE FIGURES IN THIS VIDEO • One worked example: $2,400 of monthly rent, $3,600 a year of property taxes, $3,300 a year of landlord insurance, no association dues, a 30-year fixed at 7.25%, fully amortizing. Every loan figure is the largest loan whose full payment (principal, interest, taxes, insurance and dues) the rent covers at the stated ratio. It is the same math the calculator runs. • 7.25% is the rate on my sheet the week this was recorded. DSCR rates move daily and are priced by credit score, down payment, ratio and property type. • Program rules (the 1.00 floor, the 1.25 pricing tier, the 80% purchase cap, six months of reserves, the lower-of-lease-or-rent-schedule rule, interest-only qualifying) describe most of the programs I use. They are lender guidelines, not regulations, and yours may differ. • Form 1007 is the Fannie Mae Single-Family Comparable Rent Schedule the appraiser completes. • A DSCR loan on a rental you don't live in is business-purpose credit (12 CFR 1026.3(a)(1)), which is why no APR is quoted here. David Lurvey | NMLS 410420 | Cornerstone First Mortgage NMLS 173855 | Equal Housing Lender | educational, not personalized financial advice