Investor Lending
DSCR Loans: Qualify on Rental Income, Not Your W-2
Real estate investors can now qualify for financing based on a property's cash flow — no personal income documents, no tax returns, no employer verification required.
Talk To An ExpertWhat Is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is a type of investment property mortgage where the lender qualifies you based on the rental income the property generates — not your personal income. It's designed specifically for real estate investors who want to grow their portfolio without the friction of traditional income verification.
DSCR is calculated by dividing the property's gross rental income by its total monthly debt obligations (principal, interest, taxes, insurance, and HOA if applicable).
The DSCR Formula
DSCR = Monthly Rental Income ÷ Monthly Debt Obligations
Example: $2,400 rent ÷ $1,800 PITIA = DSCR of 1.33 ✓ Qualifies
Most lenders require a minimum DSCR of 1.0–1.25. We work with ratios as low as 0.75 on select programs.
Key Benefits of DSCR Loans
Why investors choose DSCR financing over conventional loans
No Income Docs Required
Skip W-2s, pay stubs, and tax returns. Qualification is based entirely on property cash flow.
Scale Your Portfolio Faster
No limit on the number of financed properties. Grow without hitting conventional loan caps.
Flexible DSCR Ratios
Programs available for DSCRs as low as 0.75 — ideal for properties in high-appreciation markets.
LLC & Entity Vesting
Close in the name of your LLC or trust to protect your personal assets and simplify accounting.
Short-Term Rental Eligible
Airbnb and VRBO income can be used for qualification using market rent or actual rental history.
Interest-Only Options
Maximize monthly cash flow with interest-only payment structures available on select programs.
Eligible Property Types
DSCR loans work across a wide range of investment property types
Single-Family Homes
2–4 Unit Multifamily
Condos & Townhomes
Short-Term Rentals
Who Is a DSCR Loan For?
- Real estate investors with multiple properties who have complex tax returns
- Self-employed borrowers whose write-offs reduce qualifying income on paper
- W-2 earners who want to keep investment and personal finances separate
- Investors purchasing short-term rentals (Airbnb/VRBO) in Arizona
- Portfolio investors looking to scale beyond conventional loan limits
- Foreign nationals investing in U.S. real estate
Common Questions About DSCR Loans
What is the minimum DSCR required?
Most programs require a minimum DSCR of 1.0 (break-even). Some lenders offer programs down to 0.75 for strong borrowers with good credit and larger down payments.
Do I need good credit for a DSCR loan?
Yes — most DSCR programs require a minimum credit score of 620–660. Better credit scores unlock lower rates and higher LTVs.
How much do I need to put down?
Typically 20–25% down for a purchase. Some programs allow 15% down for single-family properties with strong DSCR ratios.
Can I use projected rent for a new purchase?
Yes. For purchases, lenders typically use a market rent appraisal (Form 1007) to determine the qualifying rental income.
Ready to Qualify on Rental Income?
Our DSCR loan specialists are ready to walk you through your options — no obligation, no pressure.
Talk To An Expert