📊 DSCR Loans (Debt Service Coverage Ratio)

“Invest in real estate without W-2s, tax returns, or job history.”

📘 What Is a DSCR Loan?

A DSCR loan is a type of non-QM mortgage designed for real estate investors. Instead of using personal income or employment documentation, lenders qualify you based on the property’s rental income compared to its monthly payment.

If the rent covers the mortgage, the deal can work — simple as that.

✅ Why Investors Choose DSCR Loans

  • ❌ No personal income verification

  • ❌ No tax returns or W-2s needed

  • ✅ Available for LLCs, trusts, or individuals

  • ✅ Qualify using lease agreements or market rent

  • ✅ Perfect for short-term and long-term rentals

  • ✅ Use for purchase, refinance, or cash-out

  • 🕒 Close faster than traditional loans

📐 How Is DSCR Calculated?

DSCR = Gross Rent ÷ PITI (Principal + Interest + Taxes + Insurance)

DSCR Value What It Means
1.0 Break-even (rent covers payment exactly)
> 1.0 Positive cash flow (ideal)
< 1.0 Negative cash flow — some lenders still allow

  • Most lenders require 1.0–1.25 minimum DSCR

  • 💡 Higher DSCR = better interest rates and terms

🏠 DSCR Loans for Property Purchases

Ideal for financing:

  • 🏘️ Single-family rentals

  • 🏢 2–4 unit properties

  • 🏠 Condos and townhomes

  • 🏖️ Short-term rentals (Airbnb, VRBO)

  • 🏛️ Properties held in LLCs or revocable trusts

Key Purchase Highlights

  • Minimum 20–25% down payment

  • Use lease agreements or market rent via appraisal (Form 1007)

  • No cap on number of financed properties

  • Loan amounts up to $2–5 million

🔁 DSCR Refinance Options

🔄 Rate & Term Refinance

  • Lower your rate or monthly payment

  • No cash back — just better terms

  • Keep title in your personal name or LLC

💰 Cash-Out Refinance

  • Tap equity from a rental property

  • Use funds to purchase more properties, renovate, or consolidate

  • Max LTV: 70–75% (varies by lender)

  • DSCR is based on actual or market rent, not personal income

🧾 What You’ll Need

No W-2s or income docs required. Most lenders request:

  • ✅ Government-issued ID

  • ✅ Lease agreement or 1007 rent schedule

  • ✅ Homeowners insurance policy

  • ✅ Mortgage statement (for refinance only)

  • ✅ Title info (individual, LLC, or trust)

  • ✅ 3–12 months of reserves (depends on DSCR and LTV)

🧠 Frequently Asked Questions

Can I get a DSCR loan for my first investment property?
Yes — no prior landlord experience is required with most lenders.

What if the property isn’t rented yet?
Lenders can use market rent based on an appraiser’s 1007 rent schedule.

Can I hold title in an LLC or trust?
Absolutely — most DSCR lenders allow entity-based ownership.

Do DSCR loans show up on personal credit?
Some do, some don’t. Ask about lender options that don’t report to personal credit.

How do rates compare to conventional loans?
DSCR loans have slightly higher rates but offer far more flexibility. Terms improve with stronger DSCR and lower LTV.

🔗 Related Pages

🚀 Start Growing Your Rental Portfolio

Whether you’re buying your first property or scaling your portfolio, DSCR financing gives you the freedom to invest on your terms — not your tax return’s.

🔵 [Apply Now]
📞 [Talk to a DSCR Loan Expert]
📋 [Check My Investment Eligibility]


🔒 Disclosure

This is not a commitment to lend. DSCR loans are non-QM programs subject to credit review, appraisal, rental income validation, and underwriting guidelines. Rates, terms, and DSCR requirements vary by lender. Not all applicants will qualify. Additional conditions may apply.

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