Interest-Only (I/O) 40-Year & 30-Year DSCR Structure
Bottom Line Up Front (BLUF): By removing principal amortization during the first 10 years, an Interest-Only DSCR loan lowers monthly debt service (ITIA) and increases the property’s DSCR ratio—often unlocking higher maximum loan proceeds on tight cash-flowing assets.
Underwriting Formula / Rule
IO DSCR = Gross Monthly Rent ÷ Monthly ITIA (Interest + Taxes + Insurance + HOA).
Wholesale Shelf Benchmark
30-Year (10-Yr IO + 20-Yr Amort) and 40-Year (10-Yr IO + 30-Yr Amort) available across wholesale shelves.
Frequently Asked Underwriting Questions
Can I qualify based on the Interest-Only payment?
Yes, many wholesale DSCR shelves qualify the borrower’s DSCR ratio directly off the lower Interest-Only ITIA payment.
Arranged by Loan Daddy LLC (NMLS #2827624 · (480) 485-1229 · quotes@loandaddy.ai). Business-purpose investment properties only.