A DSCR (Debt Service Coverage Ratio) loan is an investment property loan that qualifies you based on the property's rental income rather than your personal income. The DSCR ratio compares the property's monthly rental income to its monthly debt obligations (mortgage payment, taxes, insurance, HOA fees).

Most lenders require a minimum DSCR of 1.0 (property income equals debt obligations), but we can work with ratios as low as 0.75. A DSCR of 1.25 or higher typically gets the best rates. We calculate this by dividing monthly rental income by monthly debt service.

No! That's the beauty of DSCR loans. You don't need to provide personal tax returns, W-2s, pay stubs, or employment verification. Qualification is based solely on the property's ability to generate rental income and cover the debt.

Yes! DSCR loans are entity-friendly. You can take title in an LLC, Corporation, or other business entity, which provides asset protection and potential tax benefits. This is a major advantage for experienced investors.

Unlike conventional loans which typically cap at 10 properties, DSCR loans have no limit. You can finance unlimited investment properties as long as each property meets the DSCR requirements and you have sufficient down payment and reserves.

Typically 15-25% down payment is required, depending on your DSCR ratio, credit score, and property type. Higher down payments and stronger DSCR ratios result in better rates. Some scenarios may require 20-25% down.

The minimum credit score is typically 660, though 680+ gets better rates. Unlike conventional loans, your debt-to-income ratio doesn't matter—only the property's cash flow and your credit score.

DSCR loans typically close in 21-30 days, faster than conventional investment loans because there's less documentation to review. The streamlined process means you can compete with cash buyers and close quickly on time-sensitive deals.

Single-family homes, 2-4 unit properties, condos, and townhomes can qualify. The property must be currently rented or have strong rental potential. We also finance properties in need of light renovation (though extensive rehabs may not qualify).

Yes! DSCR loans work for purchases and cash-out refinances. You can refinance existing rental properties to access equity for your next investment, debt consolidation, or renovations—all based on property cash flow.