Think DSCR loans are one-size-fits-all? Think again. Once you cross into 5-unit and above territory, the rules change — and so do the opportunities.

In this episode, we break down how DSCR financing works for 5+ unit residential properties and why it's a completely different product than the 1-4 unit DSCR loans most investors are familiar with. From how lenders underwrite the deal to how debt coverage ratios are calculated across a larger rent roll, we walk you through what to expect and what lenders are really looking at.

We also share a real-life client example of someone who used a 5+ unit DSCR loan to acquire a property, showing you exactly what the numbers looked like — purchase price, payment options, and how the debt service coverage ratio played out in practice.

Plus, we dive into why interest-only payments can be a game changer for investors working to stabilize a property. When you're filling vacancies, making improvements, and pushing rents to market, that lower monthly obligation gives you breathing room and more cash flow right when you need it most.

Whether you're scaling from a fourplex into your first small apartment building or actively shopping for 5+ unit deals, this episode gives you the financing playbook.

For additional resources, loan scenarios, or to connect with our team directly, visit us at www.seimortgage.com.

⭐ If this episode helped you, SUBSCRIBE, leave a 5-star review, and share it with a fellow business owner or investor who needs to hear this!

All information provided in this podcast is for educational and informational purposes only. Nothing in this episode should be interpreted as: Legal advice Financial advice Tax advice Real estate advice A commitment to lend An offer, quote, or guarantee of loan terms Loan guidelines, program availability, rates, underwriting rules, and qualification methods — especially for Non-QM mortgage programs — can change at any time and may vary by lender, investor, market conditions, and state regulations. Examples given are hypothetical and may not reflect actual terms available to any borrower. Listeners should independently verify all calculations, assumptions, and program details with qualified professionals. Always consult with a licensed mortgage lender, real estate agent, CPA, financial advisor, or attorney before making decisions related to home financing, investing, or credit. This podcast is not affiliated with, endorsed by, or acting on behalf of Fannie Mae, Freddie Mac, FHA, VA, HUD, or any government agency. No government agency has reviewed or approved the content of this recording. The Turkey Foundation, Inc. 1805 E Garry Ave, Santa Ana, CA 92705 Equal Housing Lender

We break down one of the most powerful non-QM loan products available today: the Profit and Loss (P&L) Loan. If you own a cash-heavy business—like a nail salon, restaurant, auto shop, or any service-based operation—and your tax returns don’t reflect your true income, this episode is for you.

Whether you’re looking to purchase your first home, refinance existing debt, or invest in real estate, this episode breaks down exactly how the P&L loan works, what you need to qualify, and why non-QM lending is no longer “subprime

What You’ll Learn in This Episode:

• What a Profit & Loss (P&L) loan is and how it works for self-employed borrowers

• Why traditional banks and even bank statement loans fall short for cash-heavy businesses

• The difference between audited vs. unaudited P&L statements and how they affect your rate

• Real success story: Nail salon owner qualifies for a $1.4M home purchase with a P&L loan

• How a P&L cash-out refinance helped a business owner eliminate $2,500/month in credit card debt

• Down payment requirements, credit score guidelines, and rate factors for non-QM P&L loans

• How to use business funds for your down payment and closing costs

Whether you’re self-employed, a real estate investor, or a business owner who’s been turned down by traditional lenders—we specialize in finding the right loan for your situation.

🌐 Visit us: https://seimortgage.com/

📞 Schedule a free consultation to see if a Profit & Loss loan, bank statement loan, DSCR loan, or other non-QM product is right for you.

https://calendly.com/ryan-elendingteam/self-employed-or-investor-consultation

⭐ If this episode helped you, SUBSCRIBE, leave a 5-star review, and share it with a fellow business owner or investor who needs to hear this!

All information provided in this podcast is for educational and informational purposes only. Nothing in this episode should be interpreted as: Legal advice Financial advice Tax advice Real estate advice A commitment to lend An offer, quote, or guarantee of loan terms Loan guidelines, program availability, rates, underwriting rules, and qualification methods — especially for Non-QM mortgage programs — can change at any time and may vary by lender, investor, market conditions, and state regulations. Examples given are hypothetical and may not reflect actual terms available to any borrower. Listeners should independently verify all calculations, assumptions, and program details with qualified professionals. Always consult with a licensed mortgage lender, real estate agent, CPA, financial advisor, or attorney before making decisions related to home financing, investing, or credit. This podcast is not affiliated with, endorsed by, or acting on behalf of Fannie Mae, Freddie Mac, FHA, VA, HUD, or any government agency. No government agency has reviewed or approved the content of this recording. The Turkey Foundation, Inc. 1805 E Garry Ave, Santa Ana, CA 92705 Equal Housing Lender

DSCR loans have quickly become one of the most powerful financing tools for real estate investors and self-employed borrowers, but they also come with hidden traps that can cost you tens of thousands of dollars if you don’t understand how they work.

In this episode of the SEI Mortgage Podcast, Ryan Marks breaks down the real pros and cons of DSCR loans so you know exactly when this investment property loan strategy works—and when it doesn’t.

If you are building a rental portfolio, buying investment property, or struggling to qualify for traditional mortgages because of tax write-offs, this episode will show you how DSCR loans allow investors to qualify using property cash flow instead of personal income or tax returns.

00:00 – The truth about DSCR loans most investors miss
01:02 – What a DSCR loan actually is
02:15 – Why traditional mortgages fail self-employed investors
04:10 – How DSCR loans use rental income instead of tax returns
05:20 – Why DSCR loans don’t affect your personal debt-to-income ratio
06:30 – The unlimited rental property advantage
07:35 – Buying investment properties in an LLC
08:50 – Can you buy your first rental property with a DSCR loan?
09:45 – How investors buy rental properties with as little as 10% down
11:05 – The hidden fees in DSCR loans
12:15 – Why DSCR interest rates are slightly higher
13:10 – Prepayment penalties explained
15:10 – How to calculate if a prepayment penalty makes sense
17:20 – The biggest DSCR mistakes investors make
18:20 – How smart investors structure DSCR loans correctly

Use our free DSCR calculator (no email required):
https://seimortgage.com/dscr-calculator/

Explore more tools, resources, and non-QM mortgage strategies for real estate investors and self-employed borrowers at:

🌐 https://seimortgage.com

DISCLAIMER - Ryan Marks is a Licensed Mortgage Loan Originator (NMLS #519138) operating under The Turkey Foundation, Inc. (NMLS #236669), an Equal Housing Lender. Ryan conducts mortgage origination under his DBA, The Everyday Lending Group. SEI Mortgage is an educational brand only. It is not a mortgage lender, does not issue pre-approvals or loan estimates, and does not extend credit in any form. All information provided in this podcast is for educational and informational purposes only. Nothing in this episode should be interpreted as: Legal advice Financial advice Tax advice Real estate advice A commitment to lend An offer, quote, or guarantee of loan terms Loan guidelines, program availability, rates, underwriting rules, and qualification methods. This podcast is not affiliated with, endorsed by, or acting on behalf of Fannie Mae, Freddie Mac, FHA, VA, HUD, or any government agency. No government agency has reviewed or approved the content of this recording. The Turkey Foundation, Inc. 1805 E Garry Ave, Santa Ana, CA 92705 Equal Housing Lender