The McDermott TeamNEXA Lending
Modern desert home with a reflecting pool at dusk

For investors buying or refinancing a rental

What’s a DSCR loan

A DSCR loan looks at whether the rent covers the payment. You don’t have to rebuild last year’s tax return into a W-2 story.

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(602) 694-5279

Who’s a Good Fit for DSCR

Landlords and small investors with a rental that can stand on its rent. First one or a fifth. Long-term lease is the cleanest. Short-term and Airbnb can work when the number is real. If the deal only works after we invent W-2 income you don’t have, this is probably the cleaner path.

A DSCR loan looks at whether the property’s rent covers the payment. It doesn’t ask you to rebuild last year’s tax return into a W-2 story. DSCR means debt-service coverage: monthly rent divided by PITIA. PITIA = the monthly housing payment used here: principal, interest, taxes, insurance, and HOA. A ratio over 1.00 means this rent is larger than this payment. Under 1.00 means it isn’t. Neither one is an automatic approval.

What I need from you

The application is how we start. You don’t have to figure out which program fits. That’s what I’m here for.

Apply first. Shortly after that I’ll tell you what documents I need. Once those are in, we get on a call and walk through your options.

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Program Finder

What are you trying to do?

Pick a goal, occupancy, and credit band. I’ll highlight the desks that usually match. That’s a starting point, not an approval.

BRRRR = buy, rehab, rent, refinance, repeat. The new loan still has to stand on the rent.

Goal
Occupancy
Credit

Market ranges, not a commitment to lend.

  • Core DSCR Purchase

    A rental you’re buying to hold. Long-term lease. The rent is what the loan looks at.

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  • Cash-Out & BRRRR

    Pull equity or refinance after the rehab. The new first still has to stand on the rent.

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  • Rate-and-Term / Bridge-Out

    Take out a bridge or replace the loan without pulling cash.

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  • Short-Term Rental DSCR

    Airbnb or other short-term stays. The rent number has to be defensible. I need a real rent number.

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  • Low-Ratio & No-Ratio

    When the rent barely covers the payment, or the file is set up without using a coverage ratio at all. Files in the 620–659 band sometimes land here.

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  • Interest-Only DSCR

    Interest-only in the PITIA so the payment used for the ratio is interest, taxes, insurance, and HOA.

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  • Foreign National

    Non-US credit or a foreign-national file on a US rental. Still a DSCR conversation.

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  • Entity & Portfolio Vesting

    LLC, trust, or more than one rental. How you hold title, and the other rentals you already have, are part of the file.

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Coverage Desk

Run the rent against PITIA

Loan amount is purchase/value × LTV. LTV = how much of the value you’re borrowing. DSCR is rent ÷ PITIA. The rate is only there so the payment math can run.

Illustrative only, not a quote.

Estimate only. Not a commitment to lend. Not a rate quote.

Term used in PITIA

This scenario

Loan amount
$393,750
Principal & interest
$2,620
PITIA
$3,110
Rent
$4,200
DSCR (rent ÷ PITIA)
1.35
Cash flow (rent − PITIA)
$1,090

A ratio over 1.00 means this rent is larger than this PITIA. Under 1.00 means the PITIA is larger. Neither one is an automatic approval.

Illustrative only, not a quote.

Email this scenario to Michael
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How it runs

  1. Apply on this page, or talk to me if you’d rather walk the rent first.
  2. I look at the rent, the property, and how you hold title.
  3. Starting here doesn’t pull credit by itself.

Built for

Investors buying or refinancing rentals. First one or a fifth. The property has to stand on its rent. I still need the file — this desk does not replace that.

Occupancy

Long-term lease is the cleanest rent story. Short-term and Airbnb can work when the number is real. Vacant with a market-rent guess is a longer conversation.

Questions I get on this

What is DSCR here?
Debt-service coverage. In the Coverage Desk it’s monthly rent divided by PITIA — principal, interest, taxes, insurance, and HOA.
Does a 620 score or a 0.75 coverage mean you’re in?
No. Those are market ranges I see, not a commitment to lend and not a score cutoff I can print as a guarantee.
Short-term or Airbnb — can the rent count?
Sometimes. It has to be a number we can defend. I won’t pad occupancy so the ratio looks prettier.
When do I apply?
Apply on this page when you’re ready. Or talk to me first if you want to run the rent together.

Office, hours, and how to reach me

Branch office

3200 E Camelback Rd #130
Phoenix, AZ 85018

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Corporate office

5559 S Sossaman Rd, Bldg 1 Ste 101
Mesa, AZ 85212

Hours

  • Monday–Thursday 8:00 AM–7:00 PM
  • Friday 8:00 AM–6:00 PM
  • Saturday 9:00 AM–5:00 PM
  • Sunday 11:00 AM–5:00 PM

From clients

5 out of 5 stars

“It's rare that another bald man does as good a job as me...but here I am writing this review for Michael. He did fantastic work on a couple refinances for me and my wife that were start to finish about 12 days each. Probably would have been faster if the appraisers schedule was better. Cannot say enough good things about him and his ability to find the right loan product that works for you. Highly recommend and will use again.”

— Matthew P

5 out of 5 stars

“Michael and his team are great, they made the process easy and are well communicated and extremely organized, they stayed on top of everything, helped me out explaining everything with great details and guided me to the best options, I will work with his team again if needed, 100% recommend”

— Jaime L

Phoenix, AZ