Qualify on your property's rental income, not your personal income. No tax returns, no W-2s, no pay stubs.
Built for real estate investors who want to grow their portfolio without letting their personal tax situation slow them down. If the property cash flows, you can likely qualify.
A DSCR loan (Debt Service Coverage Ratio loan) is a mortgage designed specifically for real estate investors. Instead of qualifying based on your personal income, the loan is underwritten based on the income the property generates relative to its debt payments.
The DSCR formula is simple: divide the property's gross monthly rent by its monthly mortgage payment (principal, interest, taxes, insurance, and HOA if applicable). A ratio of 1.0 means the property breaks even. A ratio above 1.0 means it generates positive cash flow. Most lenders require a minimum of 1.0, with better terms available for higher ratios.
This structure makes DSCR loans ideal for self-employed investors, high-write-off business owners, and anyone building a rental portfolio where traditional income documentation does not reflect actual buying power.
Understanding your ratio determines whether you qualify and at what terms.
Example: $2,800 monthly rent / $2,400 PITIA = 1.17 DSCR. This property qualifies, and the higher ratio may unlock better rate pricing.
The property's rent does not cover the full mortgage payment. Some lenders will still lend at 0.75+ DSCR for strong borrowers, but rates will be higher and down payment requirements increase. Talk to us about your options before assuming you do not qualify.
Rent exactly covers the mortgage payment. This is the minimum threshold for most DSCR programs. Qualification is possible, but lenders at this ratio are more selective on credit score and down payment requirements.
The property generates meaningful positive cash flow above its debt obligations. At this level you typically access the most competitive rates, lower down payment requirements on some programs, and broader lender options. This is the sweet spot for most investors.
Requirements vary by lender and program. These are typical guidelines across most DSCR products we access through our hybrid platform.
Minimum 1.0 DSCR to qualify on most programs. Some lenders go as low as 0.75 for strong credit profiles. Higher ratios unlock better rates and terms.
Most DSCR lenders require a minimum 620 credit score. A 680 or higher unlocks better rate tiers. Some programs require 700+ for LLC vesting or higher loan amounts.
Typical minimum is 20-25% for single-family rentals. Multi-family and short-term rental properties may require 25% or more depending on the lender program.
Single-family rentals, condos, 2-4 unit properties, and in some cases short-term rentals. Commercial or 5+ unit properties require a different loan structure.
DSCR loans are available from around $100,000 up to $3 million or more depending on the program and lender. Loan amounts vary by property type and location.
Most lenders require 3-12 months of reserves (PITIA) in liquid accounts after closing. Higher loan amounts and lower DSCR ratios typically require more reserves.
DSCR loans remove the personal income bottleneck that limits most conventional financing strategies.
No tax returns, W-2s, or pay stubs required. Your write-offs and business structure do not work against you. The property's cash flow is what matters.
No cap on the number of financed properties. DSCR loans are purpose-built for investors adding properties systematically over time without hitting conventional loan count limits.
Many DSCR programs allow vesting in an LLC or other legal entity. This is a major advantage for investors who want to separate personal liability from their investment portfolio.
Airbnb and VRBO properties qualify on select programs using documented STR income or market-rate projections. We identify lenders with the most investor-friendly STR policies.
Through our hybrid platform, we compare DSCR programs across multiple lending partners to find the most competitive rate for your property type, DSCR ratio, and investment goals.
DSCR cash-out refinances let you pull equity from existing investment properties to fund additional acquisitions, renovations, or portfolio expansion without liquidating.
Faster and simpler than conventional financing because we are qualifying the property, not your personal income.
We review the property's rental income, projected DSCR, and your credit profile to identify the right lender and program match from our hybrid platform.
We collect property information, lease agreements or market rent analysis, and basic personal information. No tax returns or income verification required.
The lender orders an appraisal and reviews the rental income analysis. Underwriting is focused on the property's financials, not yours, which streamlines the process.
DSCR loans typically close in 21 to 30 days. Once closed, your rental income covers the debt service and any surplus is your return. We coordinate everything through closing.
Let us run the DSCR analysis on your target property and show you exactly what you qualify for.