DSCR Loans
Specialized mortgage options for real estate investors—qualification based on property income, not your personal income.
No Income Verification
Qualification based on property income rather than personal income, ideal for investors with complex tax returns.
Unlimited Properties
No limits on the number of financed properties, allowing serious investors to scale efficiently.
Competitive Rates
Attractive interest rates for investment properties compared to other investor loans.
Entity Ownership
Buy under LLCs, corporations, or partnerships for asset protection and easier portfolio management.
Quick Closing
Streamlined approval process with less documentation than traditional loans—get funded faster.
Flexible Terms
Choose from 30-year fixed, ARMs, and interest-only periods to match your investment strategy.
Property Requirements
- Non-owner occupied (investment only)
- 1-4 units, condos, townhomes
- Multifamily (5+ units) may qualify
- Property must generate rental income
DSCR Calculation
- DSCR ratio typically ≥ 1.0
- Monthly Rental Income ÷ Loan Payment
- Loan payment: PITI + HOA
- Higher DSCR = better rates
Borrower Requirements
- Credit score: 640–680+
- Down payment: 20–25%
- 6–12 months cash reserves
- No income/employment check
Rental Income Determination
For DSCR loans, rental income can be based on actual leases, market rent analysis, or appraisal schedules for vacant units.
DSCR Ratio Impact
The DSCR ratio affects both loan terms and eligibility. DSCR ≥ 1.25 usually qualifies for the best rates.
Initial Consultation
Discuss your investment strategy, property, and financial goals to see if a DSCR loan is right for you.
DSCR Pre-Qualification
We analyze projected rent vs. expenses and estimate your qualifying loan amount.
Application & Documentation
Submit a loan application and basic docs—mainly property info and rent schedule.
Property Appraisal
A professional appraisal determines value and rental income potential.
Underwriting
Focus on the property’s cash flow, not your W2s or tax returns.
Closing
Sign final docs, fund your property, and start growing your portfolio—typically faster than with a conventional loan.
| Feature | DSCR Loan | Conventional Investment Loan | Hard Money Loan |
|---|---|---|---|
| Income Verification | None (property income only) | Full documentation required | Minimal or none |
| Interest Rates | Moderate (5–7%) | Lowest (4–6%) | Highest (8–12%+) |
| Down Payment | 20–25% typically | 15–25% | 30–40% typical |
| Property Limit | No limit | Typically 10 financed | No limit |
| Loan Term | 30-year options available | 15 or 30-year fixed | 1–5 years typical |
| Closing Timeline | 2–4 weeks | 30–45 days | 1–2 weeks |
The Bottom Line
DSCR loans provide a flexible middle ground—longer terms than hard money, and no income paperwork like conventional loans. Perfect for scaling your portfolio.As someone with multiple properties, DSCR loans have been a game-changer. I don’t worry about tax returns or DTI—my properties qualify on their own, and I can scale much faster.
The DSCR loan process was way more straightforward than conventional financing. Bought a fourplex under my LLC, closed in half the time.
As a self-employed investor, DSCR loans focus on property cash flow, not my tax returns. I added three more rentals this year alone.
What exactly is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is a mortgage for investment properties where the key qualification is property income, not your personal income. The DSCR ratio compares rental income to the loan’s monthly cost (must be ≥ 1.0).
How is the DSCR calculated?
DSCR = Monthly Rental Income ÷ Total Monthly Loan Payment (PITI + HOA). For example: $2,000 rent ÷ $1,600 payment = DSCR 1.25.
What credit score do I need?
Most lenders require 640–680+ for DSCR loans. Higher scores = better rates. Some accept as low as 620 with a bigger down payment.
Can I use DSCR for short-term rentals?
Yes, many DSCR lenders allow Airbnb/VRBO properties, often using market analysis or average short-term rental income for qualifying.
Are DSCR loans available for first-time investors?
Yes. Some lenders may ask for a larger down payment (25–30%) or extra reserves if it’s your first investment, but DSCR is open to new investors.
What properties qualify?
Single-family, 2–4 units, condos, townhomes, PUDs, some multifamily (5+), and mixed-use if mostly residential. Must be rental, not owner-occupied.
