No W-2s. No tax returns. Qualify based on your property's rental income — not your personal income.
DSCR loans are purpose-built for real estate investors. Instead of qualifying based on your personal income, employment, or tax returns, the lender evaluates whether the rental income from the subject property is sufficient to cover the mortgage payment. This makes DSCR loans one of the most powerful tools for scaling a rental portfolio — especially for self-employed investors, business owners, and anyone whose tax returns don't reflect their actual financial strength.
Start with a non-owner-occupied investment property — single-family, 2–4 unit, condo, townhome, or multifamily. The property can be a purchase or refinance. Short-term rentals (Airbnb/VRBO) are eligible on select programs.
DSCR = Gross Monthly Rent ÷ Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA). A DSCR of 1.0x means rent exactly covers the payment. 1.25x+ is ideal. Some programs allow as low as 0.75x or offer No-Ratio (0.50x) options for strong borrowers.
A minimum credit score of 620 is required. Most programs require 20% down (80% LTV) for purchases. Scores of 680+ unlock better rates and higher LTVs. No income documentation — no W-2s, tax returns, or pay stubs needed.
DSCR loans can close in your personal name, an LLC, LP, corporation, or trust. No personal guarantee is required on select programs. This is ideal for investors who hold properties in entities for liability protection.
The lender orders an appraisal that includes a rent schedule (Form 1007) to verify market rent. For short-term rentals, some lenders use AirDNA or a comparable STR income analysis. The appraised value and market rent determine your qualifying DSCR.
Underwriting focuses on the property's income, your credit profile, reserves, and LTV — not your personal income. Most DSCR loans close in 21–30 days. We work with a wholesale lender network to find the best program for your deal.
DSCR loans close like any other mortgage — title, escrow, and a closing disclosure. You can close in your personal name or entity. Funds are wired at closing and the property is yours.
Because DSCR loans don't count against your personal DTI, you can stack multiple DSCR loans across your portfolio. Each property qualifies on its own income. There's no hard cap on the number of DSCR loans you can have — scale as fast as your deals allow.
DSCR stands for Debt Service Coverage Ratio. It measures how well a property's rental income covers its debt obligations. A DSCR of 1.25x means the property generates 25% more income than its monthly mortgage payment.
DSCR = Gross Monthly Rental Income ÷ Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA). For example: $2,500 rent ÷ $2,000 PITIA = 1.25x DSCR.
No. DSCR loans qualify based entirely on the rental income of the subject property. No W-2s, tax returns, or pay stubs are required. This is one of the biggest advantages of DSCR loans for investors.
Most DSCR loans close in 21–30 days. The timeline depends on the appraisal turnaround and lender processing. We work with lenders who prioritize investor deals and can often move faster on straightforward transactions.
Yes. Because DSCR loans don't count against your personal debt-to-income ratio, you can hold multiple DSCR loans simultaneously. Each property qualifies on its own rental income. This makes DSCR loans ideal for scaling a rental portfolio.
Talk to Steve or Zach today for a free consultation, no credit pull required.