DSCR loan documents & cash-flow origination
Qualify a rental on the property's own cash flow, compute the DSCR, read the lease and appraisal, and generate the closing package with its prepayment rider — from attorney-drafted templates, under your own brand.
A DSCR loan is a business-purpose rental loan qualified on the property's Debt-Service-Coverage Ratio — its rental income divided by its debt service (PITIA) — rather than on the borrower's personal income. Investors use it to buy and hold 1–4 and small multifamily rentals, often on a 30-year term with an optional interest-only period.
To produce its documents, docOrder computes the DSCR from the rent and the proposed payment, reads the lease or market-rent appraisal (Form 1007) and the appraisal into the file, and assembles the note, security instrument, and prepayment rider from attorney-drafted templates by deterministic find-and-replace — unlimited, with no per-deal document fee.
How docOrder handles a DSCR loan
One branded link runs the file from quote to closing package. Here is the path a DSCR deal takes through the engine.
Quote on the property's cash flow
The borrower prices the rental on your branded link; the engine sizes it on DSCR and LTV from your rules — no personal-income math.
DSCR computed on the file
The engine computes the Debt-Service-Coverage Ratio from the rent and the proposed PITIA, so you can see it clear or fail your threshold at a glance.
Term sheet e-signed, file opens
The borrower e-signs the branded term sheet and the file opens in your pipeline.
Lease & appraisal read in
The lease or market-rent schedule (Form 1007) and the appraisal are read into the file; vesting, legal description, and APN are captured from title and cross-checked.
One click: closing package + prepay rider
Your state-specific package — note, mortgage or deed of trust, loan agreement, and prepayment rider — generates from attorney-drafted templates.
Documents a DSCR loan needs
A DSCR file leans on the property, not the borrower's tax returns. Here is the usual intake and what the engine produces.
Intake & underwriting
- Borrower / guarantor ID
- Entity formation docs
- Lease(s) or market-rent appraisal (Form 1007)
- Appraisal of the property
- Title commitment
- Evidence of landlord / hazard insurance
- Payoff statement (refinance)
- Rent roll (for the subject property)
Closing package the engine generates
- Promissory note (amortizing or interest-only period)
- Mortgage or deed of trust (state-specific)
- Loan agreement
- Prepayment penalty rider (step-down, if used)
- Assignment of leases & rents (where applicable)
- Personal guaranty (entity borrowers)
- Business-purpose certifications & state riders
Typical DSCR loan terms
What these loans commonly look like in the business-purpose market, so you can set your own box.
| Term | Typical market range |
|---|---|
| Term | 30-year amortization, often with an IO period |
| DSCR | qualifying ratio commonly ≥ 1.0–1.25 |
| Loan-to-value | up to ~75–80% |
| Prepayment | step-down penalty common (e.g. 5/4/3/2/1) |
| Qualification | property cash flow, not personal income |
| Purpose | business-purpose / non-owner-occupied only |
Ranges above are common business-purpose market terms for context only — not a docOrder product, offer, or guarantee. You set your own pricing and credit box; the engine quotes every deal from your own LTV and rate rules.
How the engine quotes, reads & generates it
Quoting & the DSCR. The pricing engine sizes a DSCR deal on LTV and the coverage ratio from your own rules, and computes the DSCR on the file from the rent and the proposed PITIA — so the file shows whether it clears your threshold before anyone re-keys a number.
Reading. It reads the lease or the market-rent appraisal (Form 1007) and the appraisal into the file, captures vesting, legal description, and APN from title, and cross-checks the APN across title and appraisal before documents can generate.
Generating. The closing package — note, security instrument, loan agreement, and the prepayment rider — is assembled by deterministic find-and-replace from attorney-drafted templates. The templates and the generated loan documents never go to an outside AI, every field is verified, and generation is unlimited with no per-deal fee across 38 states and growing.
DSCR loan FAQ
The questions lenders ask most about DSCR loans and producing their documents.
What is a DSCR loan?
A DSCR loan is a business-purpose rental loan qualified on the property's Debt-Service-Coverage Ratio — its rental income divided by its debt service — instead of the borrower's personal income. Buy-and-hold investors use it for 1 to 4 unit and small multifamily rentals, commonly on a 30-year term with an optional interest-only period.
How is DSCR calculated?
DSCR is the property's rental income divided by its debt service, usually PITIA (principal, interest, taxes, insurance, and any association dues). A ratio of 1.0 means the rent exactly covers the payment; lenders commonly look for 1.0 to 1.25 or higher. docOrder computes the ratio on the file from the rent and the proposed payment.
What documents does a DSCR loan need?
Intake usually includes borrower and entity documents, the lease or a market-rent appraisal (Form 1007), a full appraisal, a title commitment, and landlord or hazard insurance. The closing package typically includes the note, security instrument, loan agreement, a prepayment rider, and an assignment of leases and rents where applicable.
Do borrowers need to provide tax returns or personal income?
Generally no. A DSCR loan is qualified on the property's cash flow rather than the borrower's personal income, so it usually does not require tax returns or employment income documentation. It is a business-purpose product for investment property, not an owner-occupied consumer mortgage.
What are typical DSCR loan terms?
DSCR loans are commonly 30-year amortizing with an optional interest-only period, loan-to-value up to roughly 75 to 80 percent, a qualifying ratio around 1.0 to 1.25 or higher, and a step-down prepayment penalty. These are general market ranges; the lender sets the actual terms and docOrder quotes from the lender's own rules.
How does docOrder produce DSCR loan documents?
docOrder assembles the note, security instrument, loan agreement, and prepayment rider by deterministic find-and-replace from attorney-drafted templates, verifying every field and sweeping each render for placeholders. The templates and the generated documents never go to an outside AI.
Does docOrder calculate the DSCR for me?
Yes. The engine computes the Debt-Service-Coverage Ratio on the file from the rent and the proposed PITIA, so you can see whether the deal clears your threshold without re-keying the numbers. You set the qualifying ratio in your own rules.
Other loan types
docOrder runs the whole business-purpose desk. Explore the rest.
Run your DSCR closings under your own brand.
Quote it, read the documents, and generate the state-specific closing package from attorney-drafted templates — one engine you own, live in minutes.