Investor Financing

DSCR Loans — Qualify on Rental Income, Not Your Taxes

No tax returns. No W2s. No pay stubs. If the property cash flows, you can qualify. Available in 40+ states.

No personal income verification required

Min. DSCR as low as 0.75 on select programs

Short-term rental (Airbnb/STR) income accepted

Close in as little as 14–21 business days

LLCs and foreign nationals welcome

Get a DSCR Rate Quote

No obligation · Takes 60 seconds

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How It Works

What Is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio — a simple formula that compares a rental property's gross rental income to its monthly mortgage payment (principal, interest, taxes, insurance, and HOA).

Traditional lenders require tax returns, W2s, and employment verification to qualify borrowers. DSCR lenders don't care about your personal income at all. They only care whether the property generates enough rent to cover its own mortgage.

This makes DSCR loans ideal for self-employed borrowers, full-time investors, and anyone whose tax returns don't reflect their actual financial strength.

The DSCR Formula

Gross Monthly Rental Income

Total Monthly Debt Service (PITIA)

A DSCR of 1.0 means rent exactly covers the payment.
Most lenders want 1.0–1.25+ for the best rates.

1.30

$2,600 rent ÷ $2,000 payment — qualifies ✓

0.80

$1,600 rent ÷ $2,000 payment — select programs only

Program Details

DSCR Loan Guidelines

Guidelines vary by lender. These represent typical parameters across our lender network — we'll match you to the best fit for your scenario.

Loan Parameters

Loan amounts: $100K – $3.5M+
Min. DSCR: 0.75 (select programs)
30-year fixed, 5/1, 7/1, 10/1 ARM
40-year fixed (with IO option)
Interest-only available
No prepayment penalty options available

Borrower Requirements

Min. credit score: 620
No income or employment verification
No tax returns, W2s, or pay stubs
LLCs and entities allowed
Foreign nationals accepted
Unlimited financed properties

Property Types

Single-family (1–4 units)
Condos and townhomes
Short-term rentals (Airbnb/VRBO)
5–8 unit multifamily (select programs)
Non-warrantable condos
Warrantable condos

Down Payment / LTV

Purchase: up to 80% LTV (20% down)
Rate & term refi: up to 80% LTV
Cash-out refi: up to 75% LTV
Gift funds allowed (select programs)
Seller concessions allowed

Rental Income

Long-term: use lease agreement or market rent
Short-term: use AirDNA or 12-month history
Vacant properties: use appraiser market rent
Market rent from appraisal (1007/1025)

Available States

Available in 40+ states
California ✓ Florida ✓ Texas ✓
All major markets covered
Contact us to confirm your state

Quick Reference

DSCR Qualification Grid

Common scenarios and how they typically qualify across our lender network.

Parameter	Minimum	Standard	Best Pricing
Credit Score	620	680+	740+
DSCR Ratio	0.75 (select)	1.00+	1.25+
Down Payment	20%	25%	30%+
Loan Amount	$100,000	$150K–$2M	Up to $3.5M+
Property Type	SFR, Condo	1–4 Units	All types
Reserves	3 months PITIA	6 months	12 months
Entity / LLC	✓ Allowed on all programs
STR / Airbnb	✓ Accepted — AirDNA or 12-month history

Common Questions

DSCR Loan FAQ

No. DSCR loans do not require tax returns, W2s, pay stubs, or any personal income documentation. Qualification is based entirely on the property's rental income relative to its debt obligation. This is what makes them ideal for self-employed borrowers and investors with significant write-offs.

Most lenders require a minimum DSCR of 1.0 — meaning the property's rent at least covers the full mortgage payment. However, some programs allow DSCRs as low as 0.75 with compensating factors like a stronger credit score or larger down payment. Properties below 0.75 generally do not qualify.

Yes — LLCs, S-Corps, and other entities are accepted on most DSCR programs. This is one of the major advantages over conventional financing, which typically requires individual ownership. Taking title in an LLC provides liability protection and can simplify estate planning.

Yes. Short-term rental income from platforms like Airbnb and VRBO is accepted on select DSCR programs. Lenders typically use 12 months of documented rental history or a market analysis from AirDNA to estimate income. This is a significant advantage for investors in vacation or high-demand tourist markets.

Most DSCR programs require a minimum credit score of 620–640. For the best rates and highest LTV, a score of 720–740+ is ideal. Scores below 660 may require a higher down payment or lower DSCR ratio to compensate.

Standard DSCR programs require 20–25% down on purchases (80–75% LTV). Some programs allow up to 80% LTV with strong DSCR and credit. Cash-out refinances are typically capped at 70–75% LTV. Having more equity generally results in better rates and terms.

Yes. For vacant properties, lenders use the market rent from a 1007 (single-family) or 1025 (2–4 unit) rent schedule completed by the appraiser. As long as the market rent supports the DSCR, you can qualify even without an existing tenant.

DSCR loans typically close in 14–21 business days with a complete file. Because there is no income verification, the process is often faster than conventional loans. The main timeline driver is the appraisal, which typically takes 7–10 business days.

Yes. Foreign nationals without a US Social Security Number or credit history can qualify for DSCR loans using a foreign credit report or Individual Tax Identification Number (ITIN). Typically 30–35% down is required. Contact us to discuss your specific situation.

Unlike conventional loans, DSCR programs have no limit on the number of financed properties. You can have one property or fifty — as long as each deal qualifies on its own merits. This is a major advantage for serious portfolio investors building scale.