What happens when an investment property's rent does not fully cover the mortgage payment, resulting in a DSCR ratio below 1.0x? No-ratio DSCR loans allow investors to fund deals without rental coverage constraints.
When to Use a No-Ratio Loan
Common scenarios include: vacant properties awaiting premium tenants, high-insurance coastal assets with temporary rent suppression, or strategic land-banking plays in high-appreciation South Florida submarkets.
Underwriting Guidelines
Requires a minimum 680 FICO score, 25-30% down payment (70-75% LTV), and 6 to 9 months of liquid PITIA reserves. No personal tax returns or P&Ls are reviewed.
Adler Capital offers flexible no-ratio options across Florida. Check rates at hub.adlercapital.us.
