Frequently Asked Questions

Yes. The lender qualifies the deal based on the property's rental income relative to the mortgage payment — not your personal income. You will not need to provide tax returns, W-2s, pay stubs, or any employment documentation. Credit, assets (reserves), and the property itself are what matter.

Most lenders look for a minimum DSCR of 1.0, meaning the property's rental income at least covers the full PITIA payment. A DSCR of 1.25 or higher will typically qualify you for better rates and higher LTVs. Some programs allow sub-1.0 DSCR — down to 0.75 in some cases — but expect a lower maximum LTV and a rate premium.

No. DSCR loans are a non-QM product specifically designed to eliminate the need for personal income documentation. The lender will verify credit, confirm reserves, order an appraisal (which includes a rent schedule), and underwrite the deal based on the property's cash flow. Your tax returns stay in the drawer.

Many DSCR lenders — including Trilith Funding — will underwrite short-term rental properties. Income projections are typically sourced from AirDNA, actual booking history, or a comparable rent analysis provided by the appraiser. STR properties often achieve higher DSCR ratios than long-term rentals due to elevated nightly rates, which can help you qualify for more favorable terms.

A typical DSCR loan closes in 2 to 4 weeks from application, assuming the borrower provides documentation promptly and there are no title or appraisal delays. At Trilith Funding, we prioritize speed — our dedicated lending teams keep deals moving so you do not lose a property to a slow close.

With a private lender like Trilith Funding, most fix and flip loans close in 7-14 days. The timeline depends on clear title, complete documentation, and a straightforward appraisal or BPO. Having your documents ready before going under contract is the single biggest factor in closing speed.

Most private lenders require a minimum credit score of 620-660 for fix and flip loans. Your credit score is one factor among many — deal quality, experience, and down payment all carry significant weight.

Yes. First-time flippers can get funded. Expect slightly more conservative terms — lower LTC (80-85% instead of 90%), and potentially a higher rate. As you build a track record, your terms improve.

LTC (loan-to-cost) is the loan amount as a percentage of total project cost (purchase price + rehab budget). LTV (loan-to-value) is the loan amount as a percentage of the property's current or after-repair value. Most fix-and-flip lenders express their limits in terms of both — e.g., up to 90% LTC and up to 70-75% of ARV.

Yes. At 90% LTC, you are bringing 10% of the total project cost. On a $200,000 project (purchase + rehab), that is $20,000 plus closing costs.

BRRRR stands for Buy, Rehab, Rent, Refinance, Repeat. It is an investment strategy where you purchase a distressed property below market value, renovate it to increase its value, place a tenant to generate rental income, refinance based on the new appraised value to recover your invested capital, and then repeat the process with the recovered funds.

A BRRRR deal typically requires two loans. The first is a short-term bridge loan or fix-and-flip loan to fund the purchase and renovation — usually 12 to 18 months, interest-only, based on the property's after-repair value. The second is a long-term DSCR loan used to refinance the property once it is stabilized with a tenant. The DSCR loan pays off the bridge loan, and the cash-out proceeds return your original investment so you can deploy it into the next deal.

Seasoning refers to the amount of time a lender requires you to own a property before they will allow a cash-out refinance at the full appraised value. Most DSCR lenders require three to six months of seasoning from the date of purchase. During this period, you may only be able to refinance based on the original purchase price rather than the ARV. Confirm seasoning requirements before you close on the acquisition so you can plan your carrying costs.

True zero-out-of-pocket BRRRR deals are possible but uncommon. They require finding a property at a deep enough discount that the bridge loan covers the entire purchase price and rehab, and the refinance at ARV returns enough to cover all closing costs and carrying expenses. More realistically, most BRRRR investors need to bring 10 to 15 percent of the purchase price as a down payment on the bridge loan, plus reserves for carrying costs.

Most DSCR lenders require a minimum ratio of 1.0 to 1.25. A DSCR of 1.0 means the rent exactly covers the payment. A DSCR of 1.25 means there is a 25% buffer. Higher DSCR ratios typically qualify for better rates and higher LTV. When running your BRRRR numbers, target a minimum DSCR of 1.1 to give yourself a margin of safety and access to competitive loan terms.