Document Questions
What paperwork you need for DSCR and investment property loans.
Q: What documents do I need for a DSCR loan?
A: The simplified list:
- Government-issued photo ID
- 2 months bank statements
- Purchase contract
- Lease (if rented)
- Property insurance quote
- LLC documents (if applicable)
No tax returns, W-2s, or pay stubs required!
Q: Do I need tax returns?
A: No! This is DSCR's biggest advantage. Qualification is based on property income, not personal income.
Q: What if I don't have pay stubs?
A: You don't need them! DSCR doesn't require employment verification. Self-employed, retired, gig workers—all welcome.
Q: How do I prove rental income?
A:
- If rented: Provide current lease agreement
- If vacant: Appraiser provides market rent estimate
Lenders use the higher of actual rent or market estimate.
Q: What if the property is vacant?
A: No problem! The appraiser estimates market rent. You don't need existing tenants.
Q: Can I use a personal bank account for LLC purchase?
A: Usually yes—funds can be contributed to LLC. Best practice: transfer to LLC account before closing.
Q: Do I need LLC before applying?
A: No, you can buy in your personal name. If using LLC, form it before closing with Operating Agreement and EIN.
Q: What if I'm missing a document?
A:
- Bank statements: Download from online banking
- Lease: Create new one if expired
- LLC docs: Order from Secretary of State or create
Let your loan officer know—they can suggest alternatives.
Q: How long are documents valid?
A:
| Document | Validity |
|---|---|
| Bank statements | 60 days |
| Credit report | 120 days |
| Appraisal | 120-180 days |
Q: What if documents are rejected?
A: Ask why specifically, then provide corrected version. Common issues: illegible scans, missing pages, wrong dates.
Q: Do I need documents for each property I own?
A: For DSCR, usually NOT. Unlike conventional loans, DSCR evaluates each property independently.
Q: Can I submit documents electronically?
A: Yes! PDF preferred. High resolution scans, all pages included.
Q: Do I need a gift letter?
A: For DSCR, gift funds are typically NOT allowed for down payment. You must use your own documented assets.
Document Checklist
□ Photo ID (License or Passport)
□ 2 months bank statements (all pages)
□ Purchase contract
□ Current lease (if rented)
□ Insurance quote
□ LLC documents (if applicable):
□ Articles of Organization
□ Operating Agreement
□ EIN Letter
More FAQ: