DSCR Loans
The Property Qualifies. Not You.
Debt Service Coverage Ratio loans let the rental income do the talking. No tax returns, no W-2s, no personal income verification — just the numbers on the property.
Income-Based Lending for Income-Producing Properties
DSCR loans are purpose-built for real estate investors. Instead of qualifying based on your personal income, the lender evaluates whether the property's rental income covers the debt service — principal, interest, taxes, insurance, and HOA if applicable.
This structure is ideal for investors who are self-employed, hold multiple properties, or whose tax returns don't reflect their true financial position. If the property cash-flows, you can likely qualify — regardless of how many properties you already own.
The Formula
How DSCR Is Calculated
DSCR = Gross Rental Income ÷ Total Monthly Debt Service
1.25x+
Strong
Best pricing and highest LTV available. Property generates 25% more income than required to cover debt service.
1.0x–1.24x
Qualifying
Property income covers debt service. Standard pricing applies. Most investors fall in this range.
Below 1.0x
No-Ratio Option
Some programs allow DSCR below 1.0x with compensating factors — lower LTV, strong reserves, or experienced investor profile.
Program Parameters
DSCR Loan Parameters
Income Qualification
Rental income only — no personal income
Loan-to-Value
Up to 80% LTV (purchase & rate/term)
Cash-Out LTV
Up to 75% LTV on cash-out refinance
Loan Amount
$100,000 to $3M+
Loan Terms
30-year fixed, ARM, interest-only options
Minimum DSCR
0.75x–1.0x depending on program
Short-Term Rentals
Airbnb & VRBO income considered
Portfolio Loans
Multiple properties on one loan available
Eligible Assets
Eligible Property Types
Single Family Rentals
The most common DSCR asset. Long-term and short-term rental income both eligible.
2–4 Unit Properties
Small multifamily with strong per-unit cash flow. Combined rental income used for DSCR.
Condos & Townhomes
Eligible in most markets. Warrantability and HOA dues factored into debt service calculation.
Multifamily (5–20 Units)
Larger residential income properties with stabilized occupancy and documented rent rolls.
Short-Term Rentals
Airbnb, VRBO, and other STR platforms. Income verified via platform statements or market data.
Mixed-Use (Residential)
Primarily residential mixed-use properties where rental income supports the debt service calculation.
Investor Advantages
Why Investors Choose DSCR
No Personal Income Required
Self-employed, retired, or high-deduction borrowers qualify without tax returns or W-2s.
No Limit on Properties Owned
Conventional loans cap out at 10 financed properties. DSCR loans have no such restriction.
Close in Your LLC or Entity
DSCR loans are available to LLCs, LPs, and other investment entities — protecting personal assets.
Scale Your Portfolio Faster
Each property qualifies on its own merits. Add properties without your personal DTI becoming the bottleneck.
Short-Term Rental Income Counts
STR platforms generate strong income that many conventional programs won't recognize. DSCR does.
Cash-Out for Reinvestment
Pull equity from stabilized rentals to fund new acquisitions — without income documentation.
28 Years Financing Rental Portfolios
DSCR lending has transformed how experienced investors scale. Before these programs existed, every new rental property required full income documentation — and investors would eventually hit a wall. Today, a well-structured DSCR loan lets the property stand on its own. With 28 years in investment property lending, I've helped investors finance their first rental and their fiftieth. The structure matters as much as the rate — and getting it right from the start is what separates a scalable portfolio from a stalled one.
Common Questions
Frequently Asked Questions
DSCR loans are straightforward once you understand the structure. Here are the questions rental investors ask most often.
Run the Numbers
Let the Property Qualify Itself
Share the property details and current or projected rent — I'll run the DSCR calculation and show you exactly what financing looks like before you commit to the deal.