Ken Starks · Independent mortgage broker · DSCR loans
DSCR loans: 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. If the property cash flows, you have a path to approval.
20% down · 620+ credit score · No tax returns · LLC closings
The DSCR formula
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 W-2s. 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 do not reflect their real financial position, DSCR removes the biggest obstacle between them and their next acquisition. See all Non-QM loan options.
The formula: Monthly rental income ÷ total monthly payment (PITIA) = DSCR.
Example: $2,800 rent ÷ $2,200 payment = 1.27 DSCR, a strong qualifier.
Built for investors
Who DSCR loans are built for
If your personal income does not reflect your real investment capacity, this is your loan.
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Self-employed investors
Tax returns show lower income after write-offs. Conventional underwriting penalizes that. DSCR does not care.
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Portfolio builders
Already own several rentals and hitting DTI limits? DSCR lets you keep adding doors without personal income becoming the ceiling.
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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.
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LLC investors
Close in your entity name for liability protection, something Fannie Mae and Freddie Mac loans simply do not allow.
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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 will tell you exactly where you stand before you apply. Call (480) 400-5626 or start your application above.
The details
Typical DSCR loan parameters
Every lender sets their own guidelines, these ranges reflect what I see across the lenders I shop for you.
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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
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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
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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
Side by side
DSCR vs. conventional investment loan
If conventional works better for your situation, I will tell you. Here is 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 |
The process
How the process works
DSCR is simpler than conventional, less paperwork, faster underwriting, no employment verification.
- 1
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).
- 2
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.
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Streamlined documentation
ID, credit pull, property details, a lease or rent analysis, entity docs if LLC. No tax returns, no pay stubs.
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Appraisal & underwriting
I pre-underwrite every file before submission, so by the time we are in front of an underwriter, we already know the answer.
- 5
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 will tell you what lenders we are looking at and what to expect. Call (480) 400-5626 or use the calculator.
Why work with a broker
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.
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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.
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Pre-underwriting every file
I thoroughly review every investment file before submission. Fewer surprises, fewer conditions, more closings on time or early.
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Honest guidance on fit
If conventional works better for your situation, I will tell you. DSCR is the right tool when it is the right tool, not a default answer.
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23 years in investment lending
From your first rental to your twentieth, I have structured deals at every stage of an investor's portfolio. Learn more about Ken.
DSCR quick facts
Run the numbers on your deal
Give me the rent, the purchase price, and your credit range, I will tell you what is possible before you apply.
Not sure DSCR fits?
Compare related programs
DSCR loan FAQs
Common DSCR questions
Real questions from investors, answered directly.
What DSCR ratio do I need to qualify?
Do I need tax returns or pay stubs?
Can I close a DSCR loan in an LLC?
Can I use DSCR for a short-term rental (Airbnb / VRBO)?
How much do I need to put down?
Is cash-out refinance available on a DSCR loan?
Let's look at your deal
Tell me the property, the rent, and your credit range. I will run the numbers, identify the right lenders, and give you a straight answer on what is possible.
The Starks Team · Ken Starks, Independent Mortgage Broker · Equal Housing Lender. This is not a commitment to lend. DSCR loan pricing, prepayment penalty terms, and LLC closing availability vary by lender and depend on individual qualification.