Real Estate Investors

DSCR Investor Loans

Qualify based on rental income, not personal income. No tax returns, no W-2s, no employment verification. Build your rental portfolio without limits.

Quick Program Overview

Minimum DSCR

1.0 - 1.25 (No-ratio available)

Loan Amounts

$100K to $3M+

Property Limit

Unlimited financed properties

Closing Time

21-30 days typical

Understanding DSCR

The Debt Service Coverage Ratio determines if the property's income can cover the mortgage payment.

< 1.0

Negative Cash Flow

Rent doesn't cover mortgage. May need larger down payment.

1.0

Break Even

Rent equals mortgage payment. Minimum for most lenders.

1.25+

Positive Cash Flow

Rent exceeds payment by 25%+. Best rates available.

Eligible Property Types

DSCR loans work for a variety of investment property types.

Single Family

SFR, townhomes, condos

Multi-Family

2-4 units, small apartments

Short-Term Rentals

Airbnb, VRBO properties

Mixed Use

Commercial/residential combo

DSCR Loan Requirements

Here's what you'll typically need to qualify for a DSCR loan.

Minimum Requirements
  • Credit Score: 620+ (680+ for best rates)
  • Down Payment: 20-25% typical
  • DSCR: 1.0+ (no-ratio available)
  • Reserves: 6+ months PITI
Required Documents
  • Appraisal with rental analysis (Form 1007)
  • Lease agreement (if currently rented)
  • 2 months asset statements
  • Entity documents (if applicable)

DSCR Loan FAQs

Get answers to common questions about DSCR investor loans

A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that qualifies you based on the property's rental income rather than your personal income. The DSCR compares the property's expected rental income to the monthly mortgage payment (principal, interest, taxes, insurance, and HOA).
DSCR is calculated by dividing the property's gross monthly rental income by the total monthly mortgage payment (PITI + HOA). For example, if rent is $2,500/month and the mortgage payment is $2,000/month, the DSCR is 1.25. Most lenders require a minimum DSCR of 1.0 to 1.25.
Most lenders require a minimum DSCR of 1.0 (rent equals mortgage payment) to 1.25 (rent exceeds payment by 25%). Some lenders offer 'no-ratio' DSCR loans that accept ratios below 1.0 with larger down payments. Higher DSCR ratios typically qualify for better rates.
No, that's the main advantage of DSCR loans. You don't need to provide tax returns, W-2s, or pay stubs. The loan qualification is based entirely on the investment property's rental income potential, not your personal income or employment.
Yes, many lenders now offer DSCR loans for short-term rentals. Income is typically calculated using actual Airbnb/VRBO history (if available) or a third-party rental analysis. Short-term rental DSCR loans may have slightly different requirements than traditional long-term rental properties.
Unlike conventional loans (limited to 10 financed properties), DSCR loans have no limit on the number of properties you can finance. This makes them ideal for investors building large rental portfolios. Each property is evaluated independently.
Minimum credit scores for DSCR loans typically range from 620 to 680, depending on the lender. Higher credit scores (700+) qualify for better rates and terms. Some lenders offer programs for scores as low as 600 with larger down payments.
Yes, DSCR loans are available for both purchases and refinances (rate-term and cash-out). Cash-out refinances are popular for investors looking to pull equity from existing rentals to fund additional property purchases.

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Ready to Grow Your Portfolio?

Get matched with DSCR lenders who specialize in investment property financing. No income docs required.