DSCR Loans
DSCR loans qualify on the property’s cash flow, not your personal income.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. It compares the rental income a property produces against the monthly payment on the loan. If the rent covers the payment, the property can qualify on its own.
Because approval is driven by the property rather than your personal income, DSCR loans do not require tax returns, W-2s or personal debt-to-income calculations. That makes them a practical way to scale a rental portfolio.
Benefits
Benefits of DSCR Loans
No Tax Returns or W-2s
Personal income documentation is not part of the qualification.
No Personal DTI Limit
Your other mortgages do not count against this approval.
No Cap on Financed Properties
Conventional financing caps you at ten. DSCR does not.
Title in an LLC
Hold the property in an LLC for liability and structure reasons.
Short-Term Rental Income
Many programs count short-term rental income toward the ratio.
Faster, Simpler Files
Fewer documents generally means a shorter path to closing.
Who DSCR Loans Are Built For
DSCR financing suits investors whose tax returns understate their real buying power, and anyone who has hit the limits of conventional investor financing.
- Investors buying their first rental property
- Portfolio owners past the ten-property conventional cap
- Self-employed buyers with heavy write-offs
- Short-term and vacation rental owners
- Investors purchasing through an LLC
We will calculate the ratio on your target property before you make an offer, so you know where it lands.
DSCR Loan Requirements
Qualification centers on the property’s ratio, though your credit and down payment still shape pricing.
- Debt service coverage ratio at or near 1.0, program dependent
- Credit score typically 640 or higher
- Down payment generally 20 to 25 percent
- Cash reserves after closing
- Appraisal including a market rent schedule
Single-family, condo, and two to four unit properties are all commonly eligible.
Process
The DSCR Loan Process
Our goal is to make the mortgage process smooth and straightforward.
Get Pre-Qualified
We review your goals, credit and income to show what you qualify for.
Step #1
Get Pre-Approved
After reviewing your documentation, we determine your potential loan amount.
Step #2
Find Your Home
You can confidently search for homes within your approved price range.
Step #3
Loan Processing
We complete verification steps including appraisal, documentation, and underwriting.
Step #4
Closing
Once approved, you sign the final documents and officially become a homeowner.