Qualify on rental income — not your W-2 or tax returns. Finance single-family rentals, multifamily, short-term rentals, and portfolios. Close in your LLC. No personal income documentation required.
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View DSCR Snapshot →A Debt Service Coverage Ratio (DSCR) loan is a mortgage designed specifically for real estate investors. Unlike traditional mortgages that require W-2s and tax returns, DSCR loans evaluate whether a property's rental income can cover the mortgage payment.
Because qualification focuses on the property's performance — not your personal income — DSCR loans are the primary financing tool for investors who own multiple properties, operate through LLC structures, or prefer to keep personal income documentation out of the approval process entirely.
Traditional mortgages restrict investors based on personal debt-to-income ratios and require extensive income documentation. DSCR loans remove those barriers entirely — the property qualifies itself based on its rental income.
Qualify entirely on the property's rental income. Your personal income, employment history, and tax returns are not factors.
All primary DSCR programs allow LLC, LP, and corporate entity borrowers — something most retail banks will not offer.
DSCR loans are non-QM products and do not count against your Fannie/Freddie 10-loan limit. Scale without a ceiling.
Airbnb and VRBO income counts. We use AirDNA market data to qualify short-term rentals — even with no rental history.
Pull equity from existing investment properties based on rental income — not personal income. Proceeds are a loan, not taxable income.
Finance single-family rentals, 2–4 unit multifamily, condos, and short-term rentals with loan amounts up to $3,500,000.
DSCR loan requirements are straightforward compared to conventional mortgages. The primary qualification factor is the property's rental income relative to the proposed mortgage payment.
| Requirement | Typical Range |
|---|---|
| Minimum Credit Score | 620 (programs available to 580) |
| Down Payment | 20–25% (purchase) |
| Minimum DSCR Ratio | As low as 0.50x (no-ratio programs available) |
| Max Loan Amount | Up to $3,500,000 |
| Max LTV (Cash-Out Refi) | Up to 75–80% |
| Entity Borrower | LLC, LP, Corporation — allowed |
| Income Documentation | None required |
| Property Types | SFR, 2–4 unit, condo, STR |
DSCR loan rates are typically slightly higher than conventional investment property mortgages because they rely on property income rather than personal income documentation. However, the tradeoff — no W-2s, no tax returns, LLC closing — makes them the preferred tool for serious investors.
Investors can often secure better DSCR loan terms by increasing their down payment, improving credit scores before application, or choosing properties with stronger rental income relative to the purchase price. A DSCR ratio above 1.25x typically unlocks the best available pricing.
One of the most significant advantages of DSCR loans over conventional mortgages is the ability to close in an LLC, LP, or corporation. Most retail banks will not lend to business entities on investment properties — DSCR programs are specifically designed for this structure.
Understanding the difference between DSCR and conventional investment loans helps investors choose the right tool for each deal.
| Factor | DSCR Loan | Conventional Investment Loan |
|---|---|---|
| Qualification Basis | Property rental income | Personal income (W-2 / tax returns) |
| Income Documentation | None required | 2 years W-2s and tax returns |
| LLC Closing | Yes — standard | Rarely allowed |
| Loan Limit | No conventional limit cap | Max 10 Fannie/Freddie loans |
| Rate | Slightly higher | Slightly lower |
| Best For | Portfolio investors, self-employed, LLC borrowers | First investment property, strong W-2 income |
Most serious investors use conventional loans for their first one or two properties, then transition to DSCR loans as their portfolio grows and conventional limits become a constraint.
Provide the property address, purchase price or current value, and expected rental income. We run a preliminary DSCR calculation to confirm the deal qualifies before you invest time in the full application.
For long-term rentals, we use the lease agreement or market rent from an appraisal. For short-term rentals, we use AirDNA or similar market data. The lender compares this to the proposed PITIA payment to calculate the DSCR ratio.
The underwriter reviews the property, appraisal, entity documents (if LLC), and credit. No personal income documentation is required. Approval timelines are typically faster than conventional loans.
Close in your LLC or personal name. Funds are disbursed, title transfers, and you own the investment property with long-term DSCR financing in place.
Airbnb and VRBO investors can use DSCR loans to finance vacation rental properties — even properties with no rental history. Instead of requiring a lease, lenders use projected short-term rental income from data providers like AirDNA to calculate the DSCR ratio.
DSCR loans are commonly used to finance small multifamily properties with two to four units. Multifamily properties often have stronger DSCR ratios than single-family rentals because multiple rental streams provide more income relative to the mortgage payment.
DSCR stands for Debt Service Coverage Ratio. It is calculated by dividing the property's gross monthly rental income by the total monthly mortgage payment (principal, interest, taxes, insurance, and HOA if applicable). A ratio of 1.0 means the rent exactly covers the payment. A ratio above 1.0 means the property generates more income than the payment requires.
We have programs as low as 0.50x DSCR, and even no-ratio programs for experienced investors with strong compensating factors. Most programs prefer 1.0x–1.25x, but we have options for deals that do not cash flow perfectly on paper. Contact us to discuss your specific property.
No. DSCR loans qualify entirely on the property's rental income. We have programs that require zero personal income documentation. Your W-2, tax returns, and employment history are not factors in the approval decision.
Yes — and we strongly recommend it for asset protection. All of our primary DSCR programs allow LLC, LP, and corporate entity borrowers. The investor signs as a personal guarantor, but the property and loan are held in the entity's name. This is one of the biggest advantages of working with a broker versus a retail bank. See our Grow Your Portfolio page for more on LLC investing strategies.
There is no hard cap. DSCR loans are non-QM products and do not count against your conventional Fannie/Freddie 10-loan limit. We have clients with 20+ DSCR loans across their portfolio. Each loan is underwritten on the individual property's cash flow, not your total debt load.
Yes. A DSCR cash-out refinance lets you pull equity from an existing investment property based on the property's rental income — not your personal income. The proceeds are a loan, not taxable income. Most programs allow up to 75–80% LTV on cash-out refis. This is a core strategy in the portfolio growth cycle — pull equity tax-free, deploy into the next deal, repeat.
For short-term rental properties, lenders use projected rental income from data providers like AirDNA rather than requiring an existing lease. This means you can qualify a vacation rental or Airbnb property even if it has no rental history. The projected income is compared to the mortgage payment to calculate the DSCR ratio.
Steve is licensed in New York and Florida. DSCR loans are available in all 50 states through our wholesale lender network. Bridge and non-QM programs vary by state — contact us to confirm availability in your market.
DSCR loans are the primary financing tool for replacement properties in a 1031 exchange. When you sell a property and need to acquire a replacement within the 45/180-day window, a DSCR loan lets you qualify on the replacement property's rental income without W-2s or tax returns. We pre-qualify investors for replacement property financing before the sale closes so you are ready to move on day one. See our 1031 Exchange Hub for the full process.
Deep-dive into specific topics within the DSCR loan program:
Credit score, down payment, DSCR ratio, and property type requirements explained.
Learn More →How rates are priced, what factors influence them, and how to get the best terms.
Learn More →How to close investment properties in an LLC using a DSCR loan.
Learn More →Side-by-side comparison of DSCR and conventional investment property loans.
Learn More →The complete step-by-step process from application to closing.
Learn More →Financing Airbnb and vacation rental properties with DSCR loans.
Learn More →Using DSCR loans to finance 2–4 unit rental properties.
Learn More →Combine DSCR financing with a 1031 exchange to defer capital gains and scale tax-free.
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