No DSCR Residential Loans

A no-DSCR — or no-ratio — loan is a residential investment loan that does not apply a minimum debt service coverage ratio. Unlike a standard DSCR loan, the property's rent does not need to cover the mortgage payment to qualify. Cressida Direct underwrites the asset, the borrower's credit, and reserves instead of requiring the property to cash flow, which suits deals with no rent history or negative coverage.

A no-DSCR loan is the right tool when the property will not hit a 1.0x DSCR — for example a vacant unit, a fresh acquisition with no lease in place, a short-term rental with seasonal income, or a market where rents do not cover the payment. If the property does cash flow, a standard DSCR loan usually offers higher leverage and better pricing, so no-ratio is best reserved for deals that cannot meet the ratio.

Because there is no income coverage backstopping the loan, no-ratio residential financing is typically capped at up to 70% loan-to-value, so expect to contribute at least 30% equity. The lower leverage offsets the absence of a DSCR test and keeps the program available to investors who need to close without documenting rental coverage.

No. The no-DSCR program qualifies on the property, your credit, and your reserves rather than on personal income, so no tax returns, W-2s, pay stubs, or debt-to-income calculation are required. It is a true no-ratio, no-income-documentation product for residential investment property held in your name, an LLC, or a trust.