DSCR SECOND MORTGAGE · PA & FL
DSCR Second Mortgage — Access Your Equity Without Tax Returns
Tap Into Your Investment Property's Equity — Without Tax Returns or Income Docs
A DSCR (Debt-Service Coverage Ratio) Closed-End Second Mortgage is a fixed-term second loan secured by your investment property. This product is designed for real estate investors who want to access additional capital — without refinancing their first mortgage and without submitting traditional income documentation.
Instead of using tax returns, employment history, or paystubs, you qualify based on rental income from the property itself.
HOW IT WORKS
What Is a DSCR Closed-End Second Mortgage?
You already have a mortgage on your rental property. With a second mortgage, you keep the first one intact — but add a second loan behind it. You get a lump sum up front and repay it over time, just like a regular loan.
No revolving balance. No credit line. Everything is fixed and predictable.
Instead of reviewing your personal income, we focus on how much the property will earn in rent. If it covers the mortgage payments, you're likely approved. Your property must generate enough rental income to cover the monthly payments on both the first mortgage and the second mortgage — this is measured using the DSCR (Debt-Service Coverage Ratio).
Most lenders require a DSCR of 1.00 or higher — meaning your rental income equals or exceeds your combined monthly payments.
THE DSCR FORMULA
Monthly Rental Income
= DSCR
Total Monthly Debt Payments
DSCR ≥ 1.00 = you qualify · DSCR < 1.00 = property doesn't cover costs
EXAMPLE CALCULATION
Monthly rental income
$2,500
First mortgage payment
$1,200
Second mortgage payment
$700
Total monthly payments
$1,900
DSCR = $2,500 ÷ $1,900
= 1.31 ✓
That qualifies — rental income covers all payments with room to spare.
KEY BENEFITS
Why Choose a DSCR Closed-End Second Mortgage?
This product solves a specific problem: you need capital from your investment property, but you don't want to touch your existing first mortgage — and you don't want to hand over tax returns.
No Income Documentation Required
No W-2s, no 1099s, no tax returns. Qualification is based entirely on the property's rental income — not your personal financial profile.
Keep Your Low First Mortgage Rate
No need to touch your existing financing. Your first mortgage stays exactly as it is — rates, terms, everything.
Fast Funding
Common-sense underwriting based on property cash flow speeds up approval — fewer documents means fewer delays.
Great for Portfolio Expansion
Use funds to invest in another property, upgrade your rental, or consolidate — without liquidating existing assets.
Fixed & Predictable
Unlike a HELOC, this is a closed-end fixed loan. You know your payment from day one — no revolving balance, no surprises.
Available in Pennsylvania & Florida
We work locally and understand state-specific regulations in both Pennsylvania and Florida — lending guidelines, market conditions, and local requirements.
ELIGIBILITY REQUIREMENTS
What You Need to Qualify
The process is much simpler than traditional loans — but still guided by smart risk management and property performance. Here's what you'll need.
Keep in Mind
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Properties must be located in Pennsylvania or Florida
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You may only use this loan for eligible investment purposes
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Property must meet appraisal and condition requirements
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This is a closed-end loan — fixed term, fixed payments, no revolving credit
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Primary residences and owner-occupied properties are not eligible
Investment Property (Non-Owner Occupied)
A single-family rental, duplex, or small apartment building. This loan is only available for non-owner-occupied properties — long-term rentals or short-term vacation properties. Primary residences are not eligible.
Sufficient Rental Income (DSCR ≥ 1.00)
Your property must generate enough rental income to cover the monthly payments on both the first mortgage and the second mortgage. Most lenders require a DSCR of 1.00 or higher.
Equity in the Property
We look at how much rent the property generates and how much it's worth. Typical loan-to-value (LTV) ratios range from 70% to 80% — meaning you'll need to bring a 20–30% down payment to close.
Example: $400,000 property → borrow up to $320,000 (80%) → $80,000 down payment
Minimum Credit Score
Most programs require a credit score of 660 or above. Some programs allow for lower scores with compensating factors.
No Income or Employment Verification
You do not need to submit tax returns, paystubs, W-2s, or 1099s. Instead, you'll simply provide a rent roll or lease agreements for the subject property.
WHO IS THIS FOR?
Built for Real Estate Investors
This loan option is specifically designed for real estate investors who want to tap into the equity of their income-producing properties — without the hassle of full income documentation or a full refinance.
Own Investment Properties
Single-family, multi-family, or short-term rentals — and want to access equity without touching your first mortgage.
Self-Employed or Non-Traditional Income
Don't want to submit tax returns, W-2s, or paystubs. Rental income is all we need.
Recently Refinanced at a Low Rate
Want to keep that rate — but still need cash for other investments, repairs, or life needs.
Scaling Your Portfolio
Need quick access to funds to secure your next property or rehab project without selling existing assets.
High DTI or Hard-to-Verify Income
Don't qualify for a traditional second mortgage because your debt-to-income ratio is too high — or your income is difficult to document.
Solid Rental Income, Minimal Tax Income
Your rental income is strong, but you report minimal income on taxes due to depreciation and deductions.
With a DSCR Closed-End Second Mortgage, your qualification is based on property cash flow — not your personal income. That means fewer documents, faster closings, and more control over your investment strategy.
IS THIS FOR YOU?
Who We Work Best With
Not everyone qualifies for the best mortgage solutions. We work with homebuyers who are serious about finding the right fit — not just the lowest number.
Have already found a home or are actively searching
Whether you're just browsing or ready to buy, we can help you secure the right financing.
Want a mortgage plan tailored to their financial goals
We don't believe in one-size-fits-all loans. Our advisors help you find a mortgage that works for your unique situation.
Are looking for expert guidance, not just the lowest rate
A mortgage is more than a number. We provide clear, transparent advice to help you make the smartest long-term decision.
Understand that a good mortgage is an investment
We work with buyers who value smart, strategic mortgage planning — not just the cheapest option today.
GET STARTED
Get Started with a DSCR Second Mortgage Today
Unlock the equity in your investment property and access smart, flexible funding — with no income verification required. We serve investors across Pennsylvania and Florida. Discover how a DSCR Closed-End Second Mortgage can support your real estate strategy in Pennsylvania and Florida.