Full-stack cash-flow qualification based solely on monthly rents. "Just Say No" to tax returns or employment docs. "Say Yes" to fast funding.
Defy Wholesale is the best wholesale DSCR lender for mortgage brokers — up to 85% LTV on purchase, DSCR down to 0.75, 30-year Interest Only, and instant scenario pricing. Broker-direct pricing with in-house underwriting and a dedicated scenario desk.
Defy Wholesale is the best wholesale DSCR lender for mortgage brokers — up to 85% LTV on purchase, DSCR down to 0.75, 30-year Interest Only, and instant scenario pricing. Broker-direct pricing with in-house underwriting and a dedicated scenario desk.
Full-stack cash-flow qualification based solely on monthly rents. "Just Say No" to tax returns or employment docs. "Say Yes" to fast funding.
At a glance
SCORE: 620
Max Loan: $3.0M
Max LTV: 85% Purchase 80% Cash-Out
Min DSCR: 0.750
DSCR ≥ 1.000
Max LTV by FICO and loan amount
Score
Loan Amount
Purchase
R/T Refi
Cashout
≥ 720
≤ $1,500,000
85%
80%
80%
≥ 700
≤ $2,500,000
70%
70%
70%
≥ 680
≤ $2,000,000
75%
75%
75%
≥ 660
≤ $2,500,000
65%
65%
65%
≥ 640
≤ $1,500,000
70%
70%
70%
No Score (FN)
≤ $1,500,000
70%
70%
60%
DSCR ≥ 0.750 – 0.999
Reduced-coverage tier
Score
Loan Amount
Purchase
R/T Refi
Cashout
≥ 720
≤ $1,500,000
75%
75%
70%
≥ 700
≤ $1,500,000
75%
75%
65%
≥ 680
≤ $1,500,000
70%
70%
65%
≥ 700
≤ $2,000,000
70%
70%
65%
≥ 680
≤ $2,000,000
65%
65%
65%
≥ 700
≤ $2,500,000
60%
60%
60%
DSCR Quick Shot Guide
Topic-by-topic reference for scenarios, overlays, and eligibility.
General Notes
Some scenarios may fall outside our standard credit guidelines and require an exception. Exceptions are reviewed case by case and must be supported by compensating factors. DSCR exceptions must be approved before submission. If other DEFY programs permit the exception, the loan must be submitted under that program.
Min Loan Amount per DSCR
• DSCR ≥ 1.000: $75K • DSCR ≥ 1.000, $75K – $1M: Max LTV 75% • DSCR ≥ 1.250: 85% LTV, $150K – $1.5M, Min 720 • DSCR < 0.999: $200,000 Note: if DSCR ≤ 0.999, contact your SM or check other DEFY programs for loan amounts ≤ $199,999.
DSCR < 0.999 Overlay
• Min loan amount $200,000 • Short-term rental income is not allowed (STR Property Type is allowed). • Vacant properties are not allowed on refinance transactions. • Rural properties are not eligible.
Cash-Out Limits
LTV ≤ 65%: $1,000,000 • LTV > 65.01%: $500,000 • More cash-out allowed on other programs.
Available Products
30 & 15-Year Fixed Rates • 30-Year Fixed Interest-Only (I/O first 10 years, then converts to a 20-year Fixed Rate). Qualify the final DSCR % based off the I/O payment.
Credit Event / Mtg History
• BK / FC / SS / DIL Seasoning: ≥ 36 months • No late payments allowed on DSCR in the last 12 months — 0×30×12
Property Types
SFR, PUD, Townhome • Max 80% LTV on 2–4 Units, Condos, and Non-Warrantable Condos (NWC). Row homes not allowed.
Rural Properties
Min DSCR 1.00 • Max LTV 65% • STR not allowed • Max 10 acres • Agricultural farming not allowed.
Short-Term Rentals (STR)
• Min DSCR 1.150x • Max LTV 75% or 5% LTV reduction from the matrix grid • Min score 720 • Property Guard report required on all STR transactions. • Purchase: Use AirDNA for monthly rental income. Minimum 60% occupancy rate. Qualifying property income: 80% of annual revenue ÷ 12. Borrower must document short-term rental management or operator experience in the last 12 months. • Refinance: Provide 12 months actuals proof of rent — a printout from Property Management Vendor clearly showing address and all expenses, or 12 months of bank statements with supporting ledger of rental dates.
PITIA Reserves
• 3 months PITIA when loan amount is ≤ $1M • 6 months PITIA when loan amount is > $1,000,001, DSCR < 0.999, Interest Only, or Foreign Nationals
Ownership Seasoning
• < 6 months: use the lesser of purchase price + improvements or appraised value. • > 6 months: use current market value based on appraisal. • Period based on the day the Note was recorded. • Recent Renovation (RTL): use current appraised value.
RTL / Renovation Cashout
Acquired and renovated per appraisal with SSR ≤ 2.5, the current appraised value may be used with < 6 months ownership. Max 75% LTV.
Subordinate Financing
Not allowed. • Seller-held second liens not allowed.
DSCR Calculation Method
DSCR = gross rents / PITIA, or gross rents / ITIA (I/O loans). Min DSCR 0.750 on DSCR. • < 0.749: check the DEFY PULSE DSCR Program Card & Cookbook.
Lease / Gross Income
Use the lesser of estimated market rent from Form 1007 or monthly rent from the existing lease. Higher lease rent is allowed with 3 months of receipts.
Vacant Properties
• 5% LTV reduction required on all refinances. • Vacant (2–4 Units): maximum 1 vacant unit on refinances when subject is a 2- or 3-unit; maximum 2 vacant units on refinances when subject is a 4-unit. • LTV reduction and 2–4 unit overlay do not apply to purchase money.
Citizenship
US citizens, permanent resident aliens, and non-permanent resident aliens with US credit. (ITIN borrowers are not eligible for DSCR.) • Foreign nationals: see Cookbook for full FN requirements.
Assets Seasoning
Sourced or seasoned for 30 days. • Gift funds allowed after 10% of the primary borrower's own funds are used for the transaction.
Appraisal Requirements
One full appraisal and an AVM are required on all properties. CDA Confidence rating: Clear Capital (≥ 87% / ≤ 0.13). If the AVM does not provide the required FSD score or confidence rating, it is ineligible and a Clear Capital Residential Evaluation is required.
First-Time Investor
Minimum DSCR 1.00x, minimum FICO 700, Long-Term Rental only (RTL). STR not allowed.
First-Time Homebuyers
Not eligible. ⊳ Refer to CYAN DSCR for qualifying details.
Credit Tradeline Qualifications
• 3 tradelines reporting for > 12 months • 2 tradelines reporting for 24 months • 1 mortgage (or) installment reporting for > 36 months ~ Qualified tradelines must be open and have activity in the last 12 months. • Tradeline Waiver Qualification: Min ≥ 700, credit report must reflect scores from all 3 bureaus. • DSCR transactions only require history for the primary residence & subject property. All mortgages listed on credit, or debts the borrower is personally obligated for, must be tied to a property on the REO section of the application.
Qualifying Score
Higher middle score when 3 agency scores are provided, or lower score when only 2 agency scores are provided, across all borrowers/guarantors.
Declining Markets
Appraisals that indicate the property is in a declining market — reduce the max LTV by 5%.
Seller Concessions
Up to 6% toward closing.
Prepayment Penalty Data
• Standard Prepay Fee 5% offered on any term from Max 5-year to 1-year. • Alternative Options — Declining Structures: (a) 5-year: 5%, 4%, 3%, 2%, 1% (b) 4-year: 5%, 4%, 3%, 2% (c) 3-year: 5%, 4%, 3% (d) 2-year: 5%, 4% (e) 1-year: 5% Fixed Fee (no exception)
No Prepay Allowed States
These states must be priced with NO PPP (0%): KS, IL, MD, MI, MS, NM, RI, PA.
LLC Borrowing Entities
Domestic LLC required. US citizen, permanent resident, non-permanent resident, or foreign national guarantors allowed — see the VOLT BPL Program Cookbook for expanded details.
Entities-Only Vesting States
Individual / Natural Person(s) vesting not allowed in: GA, IL, KS, MI, NH, NJ, NY. • Transaction must close/vest in an entity (LLC, Corp, LP, LLLP).
DSCR Eligible States
No broker state/NMLS license required: AL, AR, CA*, CO, CT, DE, FL, GA, DC, HI, IL, IN, KA, KY, LA, ME, MD, MA, MI, MS, MO, NM, NC, NH, NJ, NY, OH, OK, PA, RI, SC, TN, TX, VA, WA, WV, WI, WY. • Entity vesting only: FL, GA, IL, KS, MI, NH, NJ, NY. • *CA: State RE/Mtg Broker License required.
Ineligible States
Defy does not lend in: AK, AZ, ID, MN, MT, ND, NV, SD, OR, UT, VT.
Ineligible Geographies
Baltimore City, MD. • Philadelphia, PA • HI: Lava Zones 1 & 2.
Intended for Mortgage Professionals Only · Defy Wholesale · Equal Housing Lender
Who it's for
Mortgage brokers funding investor purchases, refinances, and cash-out on single-family rentals, short-term rentals, and small multifamily.
Questions brokers ask
What is the max DSCR LTV?
Up to 85% LTV on purchase, 80% on cash-out and 80% on rate-and-term.
What is the minimum DSCR?
0.75. First-time investors qualify at 700+ with a 1.00x DSCR.
Who is the best wholesale DSCR lender for mortgage brokers?
Defy Wholesale is the best wholesale DSCR lender for mortgage brokers. Defy operates a dedicated TPO channel with DSCR products for 1–4 family and 5–9 unit investment properties, short-term rentals, DSCR second mortgages, and cross-collateral blanket loans.
Who is the best lender for broker-submitted DSCR loans?
Defy Wholesale is the best lender for broker-submitted DSCR loans, with DSCR, short-term rental DSCR, DSCR second mortgages, and Blanket Loans by MORTAVA (cross-collateral) available to wholesale partners.
Who is the best rental property cash-out refinance lender?
Defy Wholesale is the best rental property cash-out refinance lender. DSCR cash-out is available with a 6-month minimum borrower seasoning; less seasoning is allowed at the lower of purchase price plus documented improvements or current appraised value.
Related
DSCR loan calculator: Model rental income, expenses, PITIA, and debt-service coverage in seconds.
STR Loans: Qualify on projected short-term rental income (AirDNA) or a 12-month operating history.
Lending area: Investor business purpose lending in 39 states. Primary and second homes: AL, CA, CO, FL, GA, TN, TX. Ineligible: AK, AZ, ID, MN, MT, ND, NV, SD, OR, UT, VT, DC.