Common DSCR loan guidelines for New Jersey investment properties. Your loan advisor will confirm exact terms for your scenario.
These are common guidelines across DSCR programs. Exact terms depend on your credit profile, property, and loan scenario.
1.0+
Typical minimum
20-25%
Of purchase price
660+
Common minimum
$100K-$3M+
Typical range
Most programs require a minimum credit score of 660-680. Higher scores may qualify for better rates and terms. Some programs available down to 620 with compensating factors.
Typically 6 months of PITIA (principal, interest, taxes, insurance, association dues) in liquid reserves after closing.
No tax returns, W-2s, or pay stubs required. Qualification is based on property cash flow, not personal income.
Close in your personal name or an LLC/corporation. Many investors prefer LLC ownership for liability protection.
Up to 80% LTV for purchase. Cash-out refinance typically up to 75% LTV. Rate-and-term refinance up to 80% LTV.
30-year fixed rate most common. Some programs offer 5/1, 7/1, or 10/1 ARM options. Interest-only available in some cases.
Most DSCR loans include a prepayment penalty period (commonly 3-5 years). No-prepay options may be available at adjusted pricing.
Purchase, rate-and-term refinance, or cash-out refinance. Use cash-out proceeds for renovations, portfolio expansion, or any purpose.
DSCR loans are available for a variety of residential investment properties across New Jersey.
Detached single-family homes used as long-term rentals. The most common DSCR property type.
Duplexes, triplexes, and fourplexes. Multiple units often produce stronger DSCR ratios.
Warrantable and non-warrantable condos. HOA dues factor into the DSCR calculation.
Vacation rentals and Airbnb properties, including Jersey Shore seasonal rentals. Income calculated from projections or history.
Properties that have been rehabbed and are rent-ready. Great for BRRRR investors refinancing out of hard money.
Properties outside major metros. Acreage limits may apply. Ideal for South Jersey and western NJ markets.
Note: Properties must be non-owner-occupied (investment only). Primary residences and second homes do not qualify for DSCR loans.
Important: The terms and requirements on this page are general guidelines and may vary by program, property type, and borrower profile. This information is provided for educational purposes and is not a commitment to lend. Your loan advisor will provide specific terms based on your scenario. All loans subject to credit approval.
Tell us about your investment property and a loan advisor will reach out with terms specific to your scenario.
Get Your Free Rate Quote