DSCR Closed-End Second Mortgage in Pennsylvania

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.

How Does It Work?

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.

Tap Into Your Investment Property’s Equity—Without Tax Returns or Income Docs

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Basic Requirements

To qualify for a DSCR Closed-End Second Mortgage, you’ll need to meet a few essential criteria. The process is much simpler than traditional loans—but still guided by smart risk management and property performance.

Here’s what you’ll need:

1. You find a rental property. Investment Property (Non-Owner Occupied)

You’re looking to invest in a property that will generate monthly rental income – like a single-family rental, duplex, or small apartment building. This loan is only available for non-owner-occupied properties—such as long-term rentals or short-term vacation properties. Primary residences are not eligible.

2. We check the expected rental income. (Sufficient Rental Income)

Instead of reviewing your personal income, we focus on how much the property will earn in rent. If it covers the mortgage payment, 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)

3. We offer you a loan based on the property’s cash flow. (Equity in the Property)

We look at two main things:

- How much rent the property can generate

- How much the property is worth

We don’t need your personal income – the loan is based on the cash flow of the property itself. The stronger the income and the more valuable the property, the more you can borrow. Typical loan-to-value (LTV) ratios range from 70% to 80%.

This means you’ll need to bring a 20–30% down payment to close.

Example:
If the property you want to buy is worth $400,000, and the rental income supports it, you can typically borrow up to $320,000 (80%). Your down payment would be $80,000. Icon idea: house + 80% bar = loan, 20% = down payment

4. Minimum Credit Score

A good credit score helps secure better rates and terms.

Most programs require a credit score of 660 or above
(some programs allow for lower scores with compensating factors)

5. No Income or Employment Verification

You do not need to submit:

Tax returns
Paystubs
W2s or 1099s
Instead, you’ll simply provide a rent roll or lease agreements for the subject property.

Keep in Mind:

Properties must be located in Pennsylvania
You may only use this loan for eligible investment purposes
Property must meet appraisal and condition requirements

Example Scenario

Let’s say your rental income is $2,500/month, and your current mortgage payment is $1,200/month.
You apply for a DSCR second mortgage with an additional payment of $700/month.
Together, your total payments are $1,900/month.
Your DSCR = $2,500 ÷ $1,900 = 1.31 – That qualifies!

This is just an example for illustrative purposes only. Actual qualification depends on underwriting and lender guidelines.

Why Choose a DSCR Second Mortgage?

No income documentation required
No W2s, no 1099s, no tax returns.
Keep your low first mortgage rate
No need to touch your existing financing.
Fast funding
Common-sense underwriting speeds up approval.
Great for portfolio expansion or cash-out
Use funds to invest, upgrade, or consolidate.
Available in Pennsylvania
We work locally and understand state-specific regulations.

Who Is This For?

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.

If you fall into one of the following categories, this program could be an ideal solution:

You own investment properties (single-family, multi-family, or short-term rentals) and want to access your equity without touching your existing first mortgage.
You're self-employed or have non-traditional income and don’t want to submit tax returns, W2s, or paystubs.
You recently refinanced at a low interest rate, and want to keep that rate—but still need cash for other investments, repairs, or life needs.
You’re scaling your portfolio and need quick access to funds to secure your next property or rehab project.
You want flexibility—you don’t qualify for a traditional second mortgage because your debt-to-income (DTI) ratio is too high, or your income is difficult to verify.
You report minimal income on taxes but your rental income is solid.

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.

Next steps

Schedule Your Free Consultation
Fill out the form to start your journey. One of our experienced advisors will reach out to discuss your needs.
Get Pre-Approved
We’ll walk you through a quick and easy pre-approval process tailored to your situation.
Close on Your Dream Home
With our expert guidance, you’ll secure the right mortgage and move in with confidence!

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Is this for you?

Not everyone qualifies for the best mortgage solutions. We work with homebuyers who:

Have already found a home or are actively searching

If you’re just browsing or you’re serious about buying, 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 expert 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 just a number. We provide clear, transparent advice to help you make the smartest long-term decision.

Understand that a good mortgage is an investment, not just an expense

If you’re focused only on the “cheapest option,” this may not be the right fit. We work with buyers who value smart, strategic mortgage planning.

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. Discover how a DSCR Closed-End Second Mortgage can support your real estate strategy.

Prequalify for a DSCR Second Mortgage