DSCR / Investment

Real estate investors

Qualify based on the property's rental income, not your personal income. Purpose-built for real estate investors scaling their portfolios.

Program Overview

How DSCR / Investment Loans Work

A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that qualifies the borrower based on the property's rental income rather than their personal income. The DSCR is calculated by dividing the property's expected monthly rental income by its total monthly debt obligation (mortgage payment, taxes, insurance, and HOA if applicable).

A DSCR of 1.0 means the property's income exactly covers the mortgage payment. Most DSCR lenders look for a ratio of 1.0 to 1.25, though some programs accommodate ratios below 1.0 for strong borrowers. This income-based qualification method means investors do not need to provide tax returns, W-2s, or pay stubs.

DSCR loans are available for 1-4 unit residential investment properties, including single-family rentals, duplexes, triplexes, and fourplexes. Short-term rentals (Airbnb/VRBO) can also qualify using projected rental income in many programs. Properties can be titled in an LLC or other entity, which most conventional lenders do not allow.

For experienced investors, DSCR loans can offer an efficient path to scaling a portfolio. There is no limit on the number of properties you can finance with DSCR loans. Each property is evaluated on its own merits. This makes DSCR a popular option for investors who have been told they own "too many properties" by traditional lenders.

Key Features

  • No personal income verification required
  • Qualify based on property rental income
  • No limit on number of financed properties
  • LLCs and business entities can hold title
  • Short-term rental income (Airbnb/VRBO) accepted by many programs
  • Available in most states for investment properties
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The Process

How It Works

1

Property Income Analysis

We evaluate the property's actual or projected rental income against its carrying costs to calculate the DSCR. A market rent analysis or existing lease supports the income figure.

2

Loan Structuring

We select the right DSCR program based on your investment strategy: fixed or adjustable rate, 30-year amortization, interest-only options, or a cash-out refinance on an existing rental.

3

Streamlined Underwriting

Because DSCR loans focus on the property, underwriting is faster and simpler. No personal income documentation is required. We verify credit, assets for closing, and the property's income potential.

4

Close and Start Collecting Rent

DSCR loans can close in as little as 21 days. Properties can close in your personal name or an LLC. Title transfer to an entity after closing is also permitted on most programs.

Ideal Borrower

Who This Program Is For

DSCR loans are designed for active real estate investors who want to qualify based on property performance, not personal income documentation.

Investors acquiring single-family rental properties
Portfolio investors scaling beyond 10 financed properties
Short-term rental operators (Airbnb, VRBO)
Self-employed investors who prefer not to use tax returns for qualification
Investors purchasing through an LLC or other business entity
Cash-out refinance on existing rental properties to fund additional acquisitions

Run the Numbers

Use our calculator to explore payment scenarios, compare options, and see how a dscr / investment loan could fit your financial plan.

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Common Questions

DSCR / Investment FAQ

Most DSCR programs require a minimum ratio of 1.0, meaning the property's rental income covers the full mortgage payment. Some programs allow ratios as low as 0.75 for borrowers with strong credit and reserves. A ratio of 1.25 or higher typically qualifies for more favorable pricing.
Yes. For purchases or refinances on vacant properties, a market rent appraisal or rental analysis is used to determine the projected rental income. For short-term rental properties, some programs accept AirDNA data or historical booking revenue.
Most DSCR programs require 20-25% down on a purchase, depending on the property type and DSCR ratio. Cash-out refinances typically allow up to 75-80% loan-to-value. Rates improve with larger down payments.
Yes. One of the key advantages of DSCR loans is that they allow properties to be vested in LLCs, corporations, or other business entities. This provides liability protection for investors with multiple properties.

Ready to Explore DSCR / Investment Loans?

Let our team walk you through the details, run the numbers for your situation, and help you decide if this is the right program for your goals.

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