Never owned a home? You can still buy a rental.
Many lenders will not make a DSCR loan to someone who has never owned a home. We do. The loan is qualified on the rent the property earns, not on your tax returns. One rule decides everything else: it must be an investment property. You may not live in it.
The one rule: you cannot live in it.
| Term | A DSCR loan fitsinvestment | A DSCR loan does not fita home |
|---|---|---|
| Who lives thereThe whole question. | A tenant, under a lease | You, or a member of your family |
| A duplex or a 2–4 unitSeveral units, one building. | Every unit is rented out | You live in one unit and rent the others |
| Later onAfter closing. | It stays a rental | You plan to move in after a while |
| A vacation placeShort-term rentals. | Rented to guests as a business | Kept for your own stays |
| Holding it in an LLCThe name on the deed. | An LLC does not change the answer: who lives there does | |
Want a home to live in, or to live in one unit of a duplex? That is a consumer home loan: a different loan, with different rules. Call us about other options.
Why lenders ask whether you own a home.
| Term | What the lender wondersthe worry | What answers itthe proof |
|---|---|---|
| Will you move in?The first worry about a buyer with no home. | A first property is often meant to be a home | A lease, or the market rent and a plan to rent it |
| Where do you live now?Your own housing. | That you already have a place to live | Your lease or rent payments, or a letter if you live with family |
| Is it close to where you live?Distance and sense. | A rental far from your work is clearly not your home | The address tells it; there is nothing to send |
| Can you carry it?With no mortgage history to read. | That a vacancy will not sink you | Bank statements showing a reserve |
Tell us your situation at the start. A file that is clear on day one closes faster than one that raises the question at the end.
Your first property, as a rental.
Send the property
The address, the rent or market rent, and where you live now.
Get your terms
Leverage, rate and the cash you need to close.
Appraisal & rent
The appraisal confirms the value and the market rent. No tax returns.
Close
In your own name or an LLC.
Rent it out
A tenant moves in. The rent pays the loan.
DSCR loans with no home of your own
Can I get a DSCR loan if I have never owned a home?
Yes, with us. The property must be a rental: bought to rent out, with a tenant in it and not you. The loan is qualified on its rent.
Why do many lenders say no to first-time home buyers?
Because a first property is often meant to be lived in, and a DSCR loan may never be used for a home. Lenders that do not want to sort one from the other refuse both.
Can I live in a property bought with a DSCR loan?
No. Not you and not your family, and not for part of the year. It is a business-purpose loan on a non-owner-occupied property.
Can I buy a duplex, live in one unit and rent the other?
Not with a DSCR loan. Living in any unit makes it your home. That purchase needs a consumer home loan; call us about other options.
Can I move in later?
No. The loan is made on the basis that the property is and stays an investment. Tell a lender the truth about your plans; saying otherwise is occupancy fraud.
I rent, or I live with family. Does that matter?
It helps to show it. A lender wants to see that you have a place to live that is not the property you are buying. Tell us which applies to you.
Does buying in an LLC change the rule?
No. An LLC is how most investors hold a rental, and we lend to LLCs, but the rule is about who lives there.
Do I need landlord experience?
No. We work with first-time investors.
What should I use to buy a home I will live in?
A consumer home loan, such as a conventional or FHA mortgage. It is a different loan from the business-purpose loans on this website; call us about other options.
Buying a rental as your first property? Send it to us.
The address, the rent and where you live now. We send back how it qualifies and the terms.
*For business-purpose loans on non-owner-occupied investment property only. Not available for personal, family or household purposes. All loans subject to credit approval, underwriting and property eligibility. Rates, leverage and terms are indicative, change without notice, and not all borrowers will qualify; not a commitment to lend. YS Capital Group · NMLS ID 2609746 · Equal Housing Lender.