Investment Loans
DSCR Loans
Qualify based on property income. Not your personal tax returns.
Overview
What Is a DSCR Loan?
Debt Service Coverage Ratio (DSCR) loans qualify borrowers based on the property’s rental income rather than personal income. This makes them perfect for self-employed investors, those with complex tax returns, or investors looking to scale their portfolio without traditional income verification.
Key Benefits
Why Choose This Program?
- ✓ No personal income verification
- ✓ No W-2s or tax returns required
- ✓ Qualify based on rental income
- ✓ Fixed and adjustable rates available
- ✓ Unlimited financed properties allowed
Requirements
What You’ll Need
- ✓ DSCR ratio of 1.0 or higher preferred
- ✓ Rental income documentation (lease)
- ✓ Property appraisal required
- ✓ Minimum credit score 620+
Who Should Choose This Loan?
Is the DSCR Right for You?
- ✓ Self-employed real estate investors
- ✓ Investors scaling rental portfolios
- ✓ Borrowers who can’t verify traditional income
- ✓ LLC and entity-based purchasers
Common Use Cases
How Investors Use DSCR Loans
💼
Portfolio Scaling
Grow your rental portfolio without income verification limits.
👤
Self-Employed
Qualify on property cash flow instead of personal tax returns.
🏢
LLC Purchase
Close in a business entity for asset protection and tax benefits.
Important considerations: The property must generate sufficient rental income to cover the mortgage (minimum DSCR ratio). Rates are typically higher than conventional loans. Best suited for properties with strong rental demand and stable cash flow.
Frequently Asked Questions
DSCR FAQ
What does DSCR mean?
Debt Service Coverage Ratio measures whether the property’s rental income covers the mortgage payment. A DSCR of 1.25 means income is 25% higher than the payment.
Do I need W-2s or tax returns?
No. DSCR loans qualify based on the property’s income potential, not your personal income. This makes them ideal for self-employed investors.
What is a good DSCR ratio?
Most lenders require a minimum DSCR of 1.0-1.25. Higher ratios typically qualify for better rates and terms.
Can I close in an LLC?
Yes. DSCR loans are designed to work with LLCs and other business entities, providing liability protection for investors.
Not sure if the DSCR is right for you? Compare all loan programs →
Ready for a DSCR Loan?
Get a personalized rate quote and see how much you qualify for.