Frequently Asked
Answers before you apply.
The questions investors and brokers ask most, answered plainly.FAQ
Common questions
What is a DSCR loan?+
A DSCR (debt-service coverage ratio) loan qualifies the property on its rental cash flow instead of your personal income. The lender divides the property's rent by its debt service; at or above 1.0 the rent covers the payment. It lets investors finance and refinance rentals without conventional income documentation.
How is a DSCR loan different from a fix-and-flip loan?+
A fix-and-flip loan is short-term capital to buy, renovate, and sell. A DSCR loan is long-term financing for a rental you intend to hold. Many investors use a fix-and-flip loan for the project, then refinance into a DSCR loan once the property is rented.
What DSCR do I need to qualify?+
Our DSCR loans require a ratio of at least 1.00, meaning the rent covers the full monthly payment. If you're close, a larger down payment, a lower insurance quote, or interest-only payments can help improve your ratio.
What are your rates?+
DSCR loans start at 6.25%, multifamily at 7.25%, fix & flip at 8.99%, and construction at 9.50%. Bridge rates range from 7.99% to 11.99%. Your rate depends on the property, your credit, and your leverage.
Are your rates fixed or adjustable?+
Rates can be fixed or adjustable, depending on the program and the loan. Interest-only payments are also available on many of our loans. We'll confirm your options when we send terms.
What are your loan amounts?+
DSCR and multifamily: $100,000 to $20,000,000. Fix & flip: $200,000 to $10,000,000+. Construction: $500,000 to $50,000,000+. Bridge: $500,000 to $100,000,000+. Commercial: $250,000 to $100,000,000+.
How much leverage do you offer?+
DSCR and multifamily: up to 80% LTV. Fix & flip: up to 90% LTC and 75% ARV, with up to 100% of renovation costs. Construction: 75% to 90% LTC. Bridge and commercial: up to 80% LTV.
How much do I need for a down payment?+
DSCR loans: as little as 20% down. Fix & flip: as little as 10% of the total project cost. Your down payment depends on the property, your credit, and your experience.
How fast can Sphinx Capital close?+
DSCR, refinance, and multifamily loans: as fast as 15 days. Fix & flip: as little as 10 days. Construction: 14 to 30 days. Bridge: 10 to 30 days. Commercial bridge: 1 to 3 weeks. Commercial permanent: 30 to 60 days. All timelines start from a complete file.
What credit score do I need?+
DSCR and multifamily loans start at a 660 credit score. Fix & flip and construction loans start at 640.
Do I need an LLC?+
For fix & flip loans, yes: we lend to business entities only. Construction and bridge loans are made to business entities and trusts. DSCR loans are available to individuals or entities.
Do you work with first-time investors?+
Yes. First-time investors are welcome. Experience isn't required, though a track record can help with your leverage and pricing.
Can I apply if I'm self-employed?+
Yes. Our loans are based on the property and the deal, not your W-2 income, so self-employed investors are welcome.
Can I finance a short-term or vacation rental?+
Yes. Our DSCR loans are available for vacation and short-term rental properties.
Can I finance a rental portfolio?+
Yes. You can finance a single rental or an entire portfolio with our DSCR loans.
Do you lend for the BRRRR strategy?+
Yes. Use a fix & flip loan to buy and renovate the property, then refinance into a long-term DSCR loan once it's rented.
Can I take cash out of a rental I own?+
Yes. Our DSCR refinance loans offer both rate-and-term and cash-out options on rental properties you already own.
Do you finance multifamily and commercial properties?+
Yes. Our multifamily loans cover 5- to 20-unit rental properties, and 2- to 4-unit properties are covered by our DSCR loans. Commercial bridge and permanent loans are available on all property types through our partner family offices and hedge funds, and each loan is considered case by case.
How do renovation and construction draws work?+
Renovation and construction funds are released in draws as work is completed. After an inspection confirms the progress, the next draw is funded.
Can I extend my loan?+
Yes. Fix & flip loans can be extended up to 12 months, and extensions are available on other short-term loans depending on the project.
Do you have prepayment penalties?+
Our short-term loans have no prepayment penalties. DSCR and other long-term loans typically have a prepayment penalty, but it can be bought down or removed.
What fees should I expect?+
There's no fee to apply. The only upfront cost is the appraisal, which you pay directly to the appraiser. Origination fees are typically 2% on fix & flip and construction loans. Commercial loans run 2% to 3% for bridge and 1% to 2% for permanent financing. We'll outline all fees with your terms.
Do I need cash reserves?+
Yes. Most loans require cash reserves of 3 to 6 months of loan payments.
Is an appraisal required?+
Yes. An appraisal confirms the property's value and, for rentals, its market rent. These figures are used to finalize your loan amount and DSCR.
What documents will I need?+
Borrower identification, entity documents, bank statements, and property or project information.
What do I need to apply?+
Start with the property, borrower, and loan details for an initial review. If the terms make sense, we coordinate appraisal, title, insurance, and related diligence for the full package.
Do you lend nationwide?+
Yes, we lend nationwide except in Alaska, Nevada, North Dakota, South Dakota, and Vermont.
Do you work with brokers?+
Yes. Over half of our business comes through brokers and referral partners. Involvement is flexible, from a simple introduction to full point-of-contact support, and the relationship stays yours.
Are these consumer mortgages?+
No. Sphinx Capital provides business-purpose loans only, not consumer or owner-occupied residential mortgages.
Next Step
Still deciding which program fits?
Get a fast quote for an immediate first pass, or talk to us before you submit the full application.