Can a first-time investor get a DSCR loan?
Yes. A DSCR loan is underwritten on the property's rent rather than your landlord résumé, so a first rental is financeable on the same programs as a fortieth. Experience is captured on the application and read by the underwriter, but the current rate sheet carries no experience adjustment — the levers that move your price are credit, leverage, the DSCR itself and the property type. What a first-time file needs most is preparation: real taxes, a real insurance quote, and a real rent figure rather than an optimistic one.
THE NUMBERS
| Minimum DSCR | 0.75 (0.75–0.99 prices at +62.5 bps, 70% LTV cap) |
|---|---|
| Maximum LTV | 80% purchase or rate-and-term · 75% cash-out |
| FICO floor | 660 (below that the desk does not lend) |
| Loan size | $100K – $3M single · $10M portfolio |
| Reserves | 6 months PITIA · 12 months on a portfolio |
| Prepay options | 5-4-3-2-1 par · 3-2-1 +25 bps · 1-yr +50 bps · none +87.5 bps |
| Typical days to close | 21–30 days from a signed term sheet |
| Rate sheet | Silt Rate Desk — Market Composite Sept 2026 · effective 2026-09-01 |
| Experience adjustment | none on the current sheet — captured, not priced |
| Prior rentals required | none |
ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.
Does the desk price experience?
Not on this sheet. The published adjustments cover DSCR band, purpose, property type, portfolio status, prepay term, loan size, residency and structure — there is no line for the number of doors you have owned. Experience is still collected at application and the underwriter reads it, because it shapes the conversation about reserves and about what you are buying. Practice varies across the market: some lenders do apply a first-timer leverage haircut, so if you have been quoted one elsewhere it is worth a second opinion.
What does underwriting look at instead?
Three things carry a first file. Credit, because it sets the pricing tier and the floor is 660. Reserves, because six months of PITIA in the bank is what covers a vacancy or a boiler in a year when you have no other rental income to lean on. And the property — an appraisal that supports the price, a rent schedule that supports the rent, and a condition that does not need work before it can be let. None of those require a track record; all of them require documents you can gather this week.
How much leverage should I expect?
The same as anyone else on this sheet: up to 80% on a purchase or rate-and-term, 75% on cash-out. In practice most first files land at 75% or below, not because of a rule but because the DSCR test bites first — at 80% leverage the payment is larger and the ratio thinner, so the pricing band moves against you. Running the numbers at 70% and 75% before you commit to a down payment is the single most useful thing a first-time investor can do.
What are the common first-file mistakes?
Four, over and over. Using the seller's tax bill instead of the reassessed figure, which understates PITIA and inflates the DSCR. Using an insurance estimate off a website instead of a bound quote, which does the same. Using projected post-renovation rent, which underwriting will not accept in any circumstance. And buying with no lease and no rent schedule ordered, then discovering the market rent is below what the listing implied. Every one of them is discovered during underwriting and every one of them costs days.
How do I prepare before applying?
Pull the county's current tax record for the address rather than the seller's bill. Get a real insurance quote for a tenant-occupied property, with wind and flood where the state calls for it. Find three genuine comparable rents, or read the appraiser's rent schedule when it arrives. Have six months of PITIA sitting in an account you can document. Form the LLC, or start it — the loan closes in an entity. Do those five things and a first file moves at the same speed as an experienced one.
A worked example — a first rental at 75% leverage
| Purchase price | $185,000 |
|---|---|
| Down payment, 25% | $46,250 |
| Loan amount | $138,750 |
| Market rent | $1,650 / mo |
| Property taxes | $190 / mo |
| Insurance | $95 / mo |
| FICO 705 · 75% LTV grid rate | 7.000% |
| Loan under $150K | +0.500% |
| DSCR 1.25 or better | −0.125% |
| Illustrative rate | 7.375% |
| Principal + interest, 30-yr fixed | $958 / mo |
| PITIA | $1,243 / mo |
| DSCR — $1,650 ÷ $1,243 | 1.33 |
| Reserves required, 6 months PITIA | $7,458 |
Two things to notice. The loan falls under $150,000, which adds 50 basis points — pushing the loan slightly above that line by taking a little less down can be cheaper than it looks. And a 700-719 credit band costs 0.375% against the 740-759 band at the same leverage, which is worth knowing before you open a new card. Illustrative only.
WHAT WE NEED FROM YOU
- Purchase contract. Signed, with the closing date.
- Current tax figure. From the county record, not the seller's old bill.
- Bound insurance quote. For a tenant-occupied property, including wind or flood where relevant.
- Lease or market rent evidence. The appraiser's rent schedule covers a vacant unit.
- Two months of bank statements. Reserves are six months of PITIA.
- Entity documents. Articles, operating agreement and EIN letter — form it now if you have not.
- Government ID. For each guarantor.
FREQUENT QUESTIONS
- Do I need to already own a rental?
- No. There is no experience requirement, and the current sheet carries no experience adjustment.
- Will my first loan cost more than an experienced investor's?
- Not for lack of experience on this sheet. Your credit band, leverage and DSCR set the price.
- Do I need a lease before closing?
- No. A vacant unit qualifies on the appraiser's market rent schedule, typically at slightly lower leverage.
- How much cash do I need in total?
- Down payment, closing costs, and six months of PITIA in reserves. Reserves are the part first-time buyers most often forget.
- Can I live in it later?
- No. These are business-purpose loans and owner occupancy is a hard stop for the life of the loan.
RELATED
Last reviewed 6 September 2026 · Silt Capital lends on 1–10 unit residential DSCR only.