DSCR Second Mortgage
for Investment Properties
Access Equity, Preserve Your First Mortgage, and Scale Your Portfolio
What Is a DSCR Second Mortgage?
Smart Cash Access for Savvy Investors
A DSCR (Debt Service Coverage Ratio) Second Mortgage also known as a closed-end second lien lets you borrow a lump sum against your rental property’s equity without touching your current first mortgage. Qualification is based on your property’s cash flow, not your personal income or tax returns.
Original Closing Date
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Original Loan
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# Payments made (Months)
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Current Rate
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Mortgage Balance
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Current Property Value
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New Closing Date
(MM/DD/YYYY)
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Average Market DSCR Rate
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%
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Potential Cash out
LTV
Total New Loan Amount
Rate %
P&I PMT
Diference in Payment
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$ 0
$ 0
$ 0
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$ 0
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$ 0
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$ 0
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How a DSCR Second Mortgage Works
Finance Like a Real Estate Investor — Not a Homeowner.
Instead of reviewing W-2s or complex tax returns, lenders calculate:
DSCR =
Monthly Rental Income
Total Monthly Debt Payments
(Total Monthly Debt Payments = PITIA of first + second mortgage)
If your rental income covers the payments (typically DSCR ≥ 1.0), you can qualify.
DSCR Second Mortgage Program Overview
Eligibility Guidelines
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Investment properties only (no primary residences)
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Long-term rentals only
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Warrantable condos only under current guidelines
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Minimum 1.0 DSCR ratio required
Loan Terms
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Loan amounts: $100,000 – $500,000
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LTV up to 80%
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30-year fixed rate
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Lump-sum disbursement
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Full appraisal required
Key Benefits
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No income or employment verification — qualification based entirely on property cash flow
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No restrictions on how you use the funds
Key Investor Benefits
Three reasons DSCR second mortgages are a go-to equity tool right now.
1) Easy Qualification
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No W‑2s or tax returns required in many DSCR scenarios
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Focus on rental income and property fundamentals
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Often works well for self-employed borrowers and LLC / business ownership structures (scenario dependent)
Newer investor translation: You don’t need “perfect paperwork” to act like a pro.
Portfolio investor translation: You don’t lose momentum to income documentation or DTI limits.
2) Speed & Scale
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Access capital for your next move without restarting a full refinance
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Use equity strategically across a portfolio (repairs, down payments, reserves)
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Built for investors who value efficiency and repeatability
Newer investor translation: Turn one good rental into the down payment for the next.
Portfolio investor translation: Unlock equity across multiple assets to keep acquisitions moving.
3) Flexible Structures
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Second lien means you can keep your first mortgage intact
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Typically structured as a lump-sum with fixed payments
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Funds can often be used for almost any investor purpose (improvements, debt cleanup, reserves, growth)
Newer investor translation: Predictable payments and a clear plan.
Portfolio investor translation: Capital you can deploy where it earns the highest return.
Common Investor Use Cases
Here’s how investors typically deploy DSCR second mortgage funds:
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Down payment on the next investment property
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Renovations to increase rent and value (value-add strategy)
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Debt consolidation (clean up higher-interest business debt)
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Cash reserves for vacancy protection and new opportunities
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Portfolio expansion without disrupting existing financing
FAQ (Quick Answers Investors Want)
Does this refinance my first mortgage?
+ No, it’s a second lien. Your first mortgage typically stays in place.
Is this a HELOC?
+ Usually no. A DSCR Second Mortgage is commonly a closed-end second mortgage: lump sum + fixed payments, not a revolving credit line.
Do I need personal income docs?
+ Often not, DSCR focuses on property cash flow, though standard ID/asset/reserve documentation is common.
Can I use the funds however I want?
+ In many cases, yes (investment-purpose use). Your quote will confirm allowed uses.
What if my DSCR is under 1.0?
+ DSCRPro is built for investor realities. Some scenarios can work below 1.0 depending on equity, reserves, and overall strength.
OUR 3-STEP TO FINANCE YOUR NEXT INVESTMENT
1
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2
Review your options
Review your all options like structure, leverage, payment, timeline.
3
Close and deploy capital
Close and deploy capital into the next best move for your portfolio