Sub-1.00x / Sub-1.00x DSCR Loan
Bottom Line Up Front (BLUF): In high-appreciation coastal and Sunbelt metros, 1–4 unit properties often underwrite at 0.75x–0.95x DSCR at acquisition before value-add renovations or STR conversion. Sub-1.00x DSCR shelves approve these deals based on equity (25%–30% down) and liquid reserves.
Underwriting Formula / Rule
Minimum Coverage: 0.75x DSCR (or 0.00x True Sub-1.00x) with 65%–75% Max LTV.
Wholesale Shelf Benchmark
19+ wholesale shelves actively fund sub-1.00x DSCR transactions.
Frequently Asked Underwriting Questions
How much down payment is required for a Sub-1.00x DSCR loan?
Typically 25% to 30% down (70%–75% LTV) on acquisitions with 6–9 months PITIA reserves.
Arranged by Loan Daddy LLC (NMLS #2827624 · (480) 485-1229 · quotes@loandaddy.ai). Business-purpose investment properties only.