Qualify on the Property's Income, Not Yours
DSCR loans let real estate investors finance rental properties without tax returns, pay stubs, or employment verification.
Total Monthly Payment (PITIA)
= 1.27 DSCR ✓ Strong qualifier
What Is a DSCR Loan?
Instead of qualifying you on your personal income, the lender asks one question: does the property's rent cover its mortgage payment?
No W2s. No tax returns. No employment history. If the property cash flows, you have a path to approval.
For self-employed investors and portfolio builders whose tax returns don't reflect their real financial position, DSCR removes the biggest obstacle between them and their next acquisition.
See all Non-QM loan options →Who DSCR Loans Are Built For
If your personal income doesn't reflect your real investment capacity, this is your loan.
Self-Employed Investors
Tax returns show lower income after write-offs. Conventional underwriting penalizes that. DSCR doesn't care.
Portfolio Builders
Already own several rentals and hitting DTI limits? DSCR lets you keep adding doors without personal income becoming the ceiling.
Short-Term Rental Operators
Airbnb and VRBO income counts with the right lender. I know which ones accept STR income and how they calculate it.
LLC Investors
Close in your entity name for liability protection — something Fannie Mae and Freddie Mac loans simply don't allow.
Recent Credit Events
Some DSCR lenders have shorter seasoning requirements after bankruptcy or foreclosure than conventional programs offer.
Not Sure If You Qualify?
Give me your rental income, purchase price, and credit range — I'll tell you exactly where you stand before you apply.
Typical DSCR Loan Parameters
Every lender sets their own guidelines — these ranges reflect what I see across the lenders I shop for you.
Qualification
- No personal income docs required
- DSCR of 1.0+ typical (0.75 min some lenders)
- Credit score 620–680 minimum (700+ preferred)
- No limit on financed properties (lender-specific)
- Investment property only — not primary residences
Eligible Properties
- Single-family rentals
- Condos and townhomes
- 2–4 unit residential investment properties
- 5+ unit multifamily (program-specific)
- Short-term rentals — Airbnb / VRBO
- Mixed-use with residential component
Loan Structure
- 30-year fixed or 5/1, 7/1 ARM options
- Interest-only options available
- Cash-out refinance up to 70–75% LTV
- LLC or personal name closing
- 20–25% down for purchase
- Prepayment penalties may apply
DSCR vs. Conventional Investment Loan
If conventional works better for your situation, I'll tell you. Here's an honest side-by-side.
| Feature | DSCR Loan | Conventional Investment |
|---|---|---|
| Income documentation | Property rental income only | Full personal income docs |
| DTI ratio required | ✓ Not used | 43–45% max |
| Works for self-employed | ✓ Yes | ✗ Often problematic |
| LLC closing | ✓ Many lenders allow it | ✗ Not permitted |
| Short-term rental income | ✓ Accepted by many lenders | ✗ Generally not accepted |
| Financed property limit | Often none | 10 properties (Fannie/Freddie) |
| Rate / pricing | Higher — Non-QM premium | Lower — agency pricing |
How the Process Works
DSCR is simpler than conventional — less paperwork, faster underwriting, no employment verification.
Run Your Numbers
We calculate your DSCR before you apply — no surprises at underwriting. For a purchase, we use a market rent analysis (Form 1007).
Match You to the Right Lender
DSCR guidelines vary dramatically lender to lender. I shop across my network to find the one whose program actually fits your deal.
Streamlined Documentation
ID, credit pull, property details, a lease or rent analysis, entity docs if LLC. No tax returns, no pay stubs.
Appraisal & Underwriting
I pre-underwrite every file before submission — so by the time we're in front of an underwriter, we already know the answer.
Close in Your Entity
Close in an LLC or personal name. Prepayment structure reviewed upfront so you understand the full picture before you lock.
Ready to Run the Numbers on a Specific Property?
Give me the rent, the purchase price, and your credit range — I'll tell you what lenders we're looking at and what to expect.
Why a Broker Makes a Real Difference Here
DSCR is a Non-QM product. Every lender sets their own overlays. A broker shops them — a bank can only sell their own.
Full Lender Market Access
I shop across multiple DSCR lenders — different minimum ratios, STR policies, pricing, and LLC rules — to find the one built for your specific deal.
Pre-Underwriting Every File
I thoroughly review every investment file before submission. Fewer surprises, fewer conditions, more closings on time or early.
Honest Guidance on Fit
If conventional works better for your situation, I'll tell you. DSCR is the right tool when it's the right tool — not a default answer.
23 Years in Investment Lending
From your first rental to your twentieth, I've structured deals at every stage of an investor's portfolio. Learn more about Ken →
Common DSCR Questions
Real questions from investors — answered directly.
Most lenders want 1.0 or higher — meaning the rental income at least covers the full mortgage payment. Some programs go as low as 0.75 with a larger down payment or stronger credit. I calculate your ratio before we apply so there are no surprises at underwriting.
No. That's the whole point. DSCR loans qualify you based on the property's rental income — not your personal income documentation. No W2s, no pay stubs, no tax returns. This is why DSCR works so well for self-employed investors whose returns are full of legitimate deductions that make their income look smaller than it really is.
Yes — many DSCR lenders allow LLC closings, which conventional investment property loans (Fannie/Freddie) do not permit. Not every DSCR lender offers this, and those that do may have additional entity documentation requirements. It's one of the specifics I confirm during lender selection for your deal.
Yes — some lenders use AirDNA market data to project STR income, others require 12–24 months of documented rental history, and a few won't touch STRs at all. This is exactly where lender selection matters. I know which lenders are actually built for STR investors.
Most DSCR programs require 20–25% down for a purchase. Some lenders allow 15% on single-family rentals with strong credit and a solid DSCR ratio. The requirement goes up for multi-unit properties or when the DSCR is below 1.0.
Yes. Cash-out refinance is available on DSCR programs, typically up to 70–75% LTV. One of the most common use cases I see: pulling equity from a performing rental to fund the next acquisition without touching personal savings. See our Investment Property Loans page for the broader picture.
Let's Look at Your Deal
Tell me the property, the rent, and your credit range. I'll run the numbers, identify the right lenders, and give you a straight answer on what's possible.