Fintech Upright launches DSCR rental loan

Cleveland, Ohio-based fintech Upright has launched a debt service coverage ratio (DSCR) rental loan to investors, the company announced on Monday. 

DSCR rental loans are non-qualifying mortgages (non-QMs) used by real estate investors to qualify for a loan based on their property’s cash flow without personal income verification. 

“Many customers at first come to us for our fix and flip loans. Often, their exit strategy was to turn them into long-term rental properties, and we have previously had to refer them elsewhere. There was a piece of the puzzle missing,” Brendan Bennett, Upright’s vice president of revenue, said in a statement.

According to Bennett, the DSCR rental loans will serve Upright’s customers throughout their real estate investment journey.

The new product offers real estate investors access to at least $75,000 in 15- and 30-year fixed mortgages, adjustable rate mortgages (ARMs) and interest-only options. Loan-to-value is up to 80% for purchase or rate-and-term refinance or up to 75% in cash-out refinance.

At Upright, the DSCR rental loan is available for borrowers with a minimum 640 credit score. The loan is available for single-family residences, including modular, 2-4 unit residences, condominiums, townhomes and multi-family properties up to 10 units. 

No debt-to-income considerations or personal or business income verification are required. However, the loan is only subject to rental income. 

Upright provides real estate investors with software tools, capital and passive income opportunities. The company, founded in 2014, acquired software as a service product Flipper Force in 2022. It said it managed more than $2 billion in investments.