Qualifying

First-time investor - is 0.95 DSCR too low to get approved?

TampaDuplexBuyer · 6d ago · 42 views

I am looking at a duplex in Tampa that would cash flow about ,800/mo in rent. After PITIA the DSCR comes out to roughly 0.95. My credit score is 740 and I have 25% to put down.

Is 0.95 too low? I have heard some lenders go below 1.0 but the rate is higher. What kind of rate hit should I expect compared to a 1.25 DSCR deal?

Any advice appreciated - this would be my first investment property.

Replies

2 replies

OrlandoREI 6d ago

0.95 is definitely doable. I closed at 0.92 DSCR last year on a property in Orlando. The rate was about 75-100bps higher than what I would have gotten at 1.25+, but it still made sense for me because the property had strong appreciation upside.

With a 740 score and 25% down you should be in a good spot. Just make sure your lender is factoring in all expenses correctly - insurance in Florida can be a killer.

DSCR Capital Partners 6d ago

We work with sub-1.0 DSCR deals regularly. At 0.95 with your profile (740 FICO, 25% down) you would likely qualify without issue. The rate adjustment for sub-1.0 DSCR is typically 50-125bps depending on the full picture.

Happy to run the numbers for you if you want to reach out directly.

First-time investor - is 0.95 DSCR too low to get approved?

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