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Jon Taw Edge Home Finance |
Tuesday, October 27, 2026 |
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Business Partner Update
DSCR loans: what your investor clients need to know
Rate Snapshot · October 27, 2026 |
▼ -0.11% |
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Conventional 30-Year
7.22%
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These are national mortgage index rates as of October 27, 2026. The 30-year fixed is at 7.22% — down 0.11% from last week, FHA at 7.04%, and VA at 6.92%. For exact rates tailored to your buyers, reach out to your loan officer directly.
Source: Optimal Blue daily mortgage indices via FRED
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From Your Lending Partner
DSCR Loans Let Investors Buy on Cash Flow — Not Personal Income
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Investor activity in this market remains strong, and the product fueling it is the DSCR loan — Debt Service Coverage Ratio. Unlike conventional investment property loans, DSCR doesn't look at the buyer's personal income at all. It qualifies based on the property's rent-to-mortgage ratio. If the home rents for $2,200 and the mortgage is $2,000, the DSCR is 1.1 — most lenders will approve at that level. This means a W-2 employee with a maxed-out debt ratio, a self-employed investor, or a foreign national can qualify based purely on the deal's cash flow numbers. There's no income documentation, no employment verification, no tax returns. Down payments are typically 20–25%, and rates run about 1–1.5% above conventional. I can close these in 21 days. If you're working with investors — or want to start — I can help you identify which of your listings would pencil as rentals and use that to attract qualified investor buyers. Let's talk.
I'll run DSCR numbers on any property in your portfolio — reach out today.
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Did You Know?
Non-Warrantable Condo Financing
Get buyers into condos that conventional lenders reject.
Many condo buildings fail Fannie/Freddie warrantability tests — too many investor units, pending litigation, or HOA issues. Portfolio and non-QM lenders have programs for these buildings that your buyers are being turned away from.
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✓Covers condotels, high investor-concentration buildings, and more
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✓Available from 10% down on some programs
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✓Rates slightly above conventional but often manageable
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✓I can evaluate any building's warrantability in 24 hours
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Share With Your Buyers
Saving for a Home
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1.
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Your down payment doesn't have to be 20% — many loans allow 3–5% down.
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2.
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Don't forget closing costs — budget an additional 2–3% of the purchase price on top of your down payment.
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3.
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Gifted funds from family members are allowed on most loan programs — just document the transfer.
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4.
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Down payment assistance programs can cover your entire down payment if you qualify.
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5.
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Moving savings out of a checking account into a dedicated savings account makes it easier to document for your lender.
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Tip of the Week
Test your sump pump before the rainy season by pouring water into the pit — a failed pump can lead to serious basement flooding.
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4697801155 · jontaw.com
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