DSCR Loans for Real Estate Investors

Unlock fast, flexible financing with a Debt Service Coverage Ratio (DSCR) Loan - designed specifically for real estate investors who want to qualify using rental income, not personal income. Whether you’re growing your portfolio or refinancing an existing property, DSCR loans offer a simplified approval process and investor-friendly terms.

What Is a DSCR Loan?

A DSCR Loan is an investment mortgage that qualifies based on the property's rental income and projected cash flow.
Instead of verifying tax returns, W-2s, or personal income, lenders evaluate how well the rental income covers the property's mortgage payment - this is the Debt Service Coverage Ratio.

• DSCR = Rental Income ÷ Housing Payment (PITI + HOA)
• A DSCR of 1.0 or higher typically qualifies
• Even 0.75 - 0.99 DSCR options exist with compensating factors

Why Investors Choose DSCR Loans

✔ No personal income documents required

No tax returns, no paystubs, no W-2s. Approval is based on the property itself.

✔ Fast closings

Less documentation means quicker underwriting and smoother closings.

✔ Finance multiple properties

Most investors use DSCR loans to scale quickly - no strict cap on property count.

✔ Perfect for long-term rentals or Airbnb/short-term rentals

Qualify using market rent

✔ Flexible credit and reserves

Credit score minimums often start at 620 - 660, with common-sense reserve requirements.

How DSCR Loans Work

Step 1: Property Cash Flow Analysis

We calculate expected market rent using an appraisal (Form 1007) or verify STR income.

Step 2: Determine DSCR

DSCR = Rent ÷ New Mortgage Payment

Step 3: Choose Your Loan Structure

• Purchase or refinance
• 30-year fixed
• Interest-only options
• LLC or personal name (varies by lender)

Step 4: Close Fast

With reduced paperwork, closings are typically much faster than conventional loans.

DSCR Loan Requirements

While every lender is different, most guidelines include:

• Credit score: 620 - 680+
• Down payment: 15%+
• DSCR: 1.0+ preferred, options available below 1.0
• Property types: Single-family, duplex, triplex, fourplex, condos, townhomes
• Eligible borrowers: LLCs, corporations, self-employed individuals, investors

DSCR Loan Examples

Scenario 1: Long-Term Rental

• Market Rent: $2,200/mo
• Mortgage Payment: $1,850/mo
• DSCR = 1.19 (Approved)

Scenario 2: AirBnB / STR Property

• Avg STR Income: $6,500/mo
• Mortgage Payment: $4,100/mo
• DSCR = 1.58 (Strong Approval)

Common Uses for DSCR Loans

• Purchase new rental properties
• Rate-and-term refinance
• Cash-out refinance for future investments
• Short-term rental financing (Airbnb/VRBO)
• BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat)

Frequently Asked Questions

Can I qualify for a DSCR loan with no income?

Yes. DSCR loans use rental income, not personal income.

Can I buy multiple properties simultaneously?

Yes. DSCR loans are investor-friendly with very high (or no) property-count limits.

Do DSCR loans allow LLCs?

Most programs allow purchases under an LLC or business entity.

Apply for a DSCR Loan Today

Whether you're financing your first investment property or adding your tenth, a DSCR loan gives you the flexibility, speed, and simplicity investors need to scale.

• Real estate investors

• Borrowers with complex tax returns

• Investors expanding their portfolio

• Airbnb, VRBO, and short-term rental hosts

• Investors looking to access home equity

• Fixed Rates
• Adjustable Rate Mortgage (ARM)
• Conforming Loans
• Jumbo