DSCR Loans: Qualify on Rental Income, Not Your W-2

Investment property financing designed for real estate investors.

  • No tax returns or income docs required
  • Close in your LLC from day one
  • Fund in 2-3 weeks, not months
  • No limit on number of properties
Get Pre-Qualified DSCR Calculator
Licensed in 50 States
$50M+ Funded
150+ Investors Served

Quick DSCR Check

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Your DSCR

1.33

Qualifies for most lenders

What is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. Unlike traditional mortgages that require pay stubs, W-2s, and tax returns, DSCR loans qualify you based on the property's rental income.

If the property's rent covers the mortgage payment (plus taxes, insurance, and HOA), you qualify. It's that simple.

This makes DSCR loans ideal for self-employed investors, business owners, and anyone with complex tax situations—or just anyone who hates paperwork.

The DSCR Formula

DSCR = Rent ÷ PITIA
PITIA = Principal + Interest + Taxes + Insurance + Association dues

< 1.0

Negative cash flow

1.0 - 1.24

May qualify

1.25+

Best rates

Why Investors Choose DSCR Loans

Skip the paperwork. Focus on building your portfolio.

No Income Docs

No tax returns, no pay stubs, no employment verification. The property qualifies itself.

Close in Your LLC

Protect your assets from day one. Close directly in your entity—no need to transfer later.

No Property Limit

Conventional loans cap at 10. DSCR has no limit. Scale your portfolio without restrictions.

Fast Closing

Close in 2-3 weeks, not 45-60 days. Win more deals with quick, reliable financing.

Cash-Out Refinance

Pull equity from your rentals to fund the next deal. BRRRR strategy friendly.

STR Friendly

Short-term rental income accepted. Use AirDNA or actual income for qualification.

Foreign Nationals OK

Non-US citizens can qualify. ITIN accepted. Invest in US real estate from anywhere.

No Seasoning

Some programs allow cash-out with minimal seasoning. Perfect for flips and BRRRRs.

Who DSCR Loans Are For

If any of these sound like you, DSCR might be your perfect fit.

💼

Self-Employed

Business owners with complex tax returns or lots of write-offs that make income look low on paper.

🏘️

10+ Property Owners

Hit the conventional loan limit? DSCR has no cap. Keep growing your portfolio.

🔄

BRRRR Investors

Buy, Rehab, Rent, Refinance, Repeat. DSCR is the refinance piece that makes BRRRR work.

🏖️

STR Operators

Airbnb and VRBO hosts. Use projected or actual STR income to qualify.

How It Works

From application to funding in 4 simple steps.

1
Get Pre-Qualified

Quick online application. Get a rate quote in minutes, not days.

2
Submit Your Deal

Send us the property details. We order appraisal and title.

3
Underwriting

No tax return review. Just property income vs. debt service.

4
Close & Fund

Sign docs, get funded. Typically 2-3 weeks from start to finish.

DSCR Calculator

Check if your deal qualifies in seconds. Enter the property's rent and estimated mortgage payment to calculate your DSCR.

For a full analysis including loan amount, rate estimates, and cash flow projections, try our advanced calculator.

Full DSCR Calculator →

Quick DSCR Calculator

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Your DSCR Ratio

1.33

Qualifies for most DSCR lenders

Loan Parameters

Current DSCR loan guidelines. Rates and terms vary by scenario.

Loan Amount
$100K - $3M+
Max LTV (Purchase)
Up to 80%
Max LTV (Cash-Out Refi)
Up to 75%
Min Credit Score
660+ (680 for best rates)
Min DSCR
0.75 (1.0+ for best rates)
Property Types
SFR, 2-4 Unit, Condo, Townhome
Loan Terms
30-Year Fixed, 5/6 ARM, 40-Year IO
Prepayment Penalty
Options from 0-5 years
Closing Time
14-21 days typical

What Investors Say

Real feedback from real estate investors we've worked with.

"I was hitting the conventional loan limit and thought I'd have to slow down. DSCR let me keep scaling. Closed on 3 more properties this year."

JT
Jason T.
Portfolio Investor, TX

"As a self-employed business owner, my tax returns look like a mess. DSCR didn't care—just looked at the rent. Closed in 18 days."

MR
Michelle R.
Business Owner, CA

"Finally a lender who understands BRRRR. The cash-out refi was smooth and I got my capital back out to buy the next deal."

DK
David K.
BRRRR Investor, OH

Frequently Asked Questions

Quick answers to common DSCR loan questions.

What credit score do I need for a DSCR loan?
Most DSCR lenders require a minimum credit score of 660, though you'll get better rates at 700+. Some programs are available down to 620 with higher rates and lower LTV.
Can I use DSCR for a short-term rental (Airbnb)?
Yes! Many DSCR lenders allow short-term rental income. They typically use either projected income from AirDNA or your actual STR income history (usually 12 months). Some lenders specialize in STR properties.
How much down payment is required?
Typical down payment is 20-25% for purchases. Some lenders offer 15% down with higher rates or stronger DSCR. For cash-out refinances, you can typically get up to 75% LTV.
Is there a prepayment penalty?
Most DSCR loans have a prepayment penalty, typically 3-5 years with declining percentages (e.g., 5-4-3-2-1 or 3-2-1). You can often choose a shorter prepay period for a slightly higher rate. No-prepay options are available but less common.
Can I close in my LLC?
Yes! This is one of the biggest advantages of DSCR loans. You can close directly in your LLC, trust, or corporation. No need to buy in your personal name and transfer later.
What if my DSCR is below 1.0?
Some lenders offer "No Ratio" or sub-1.0 DSCR programs, typically down to 0.75. You'll pay a higher rate and may need a larger down payment, but deals that don't cash flow on day one can still get financed.
Do I need reserves?
Yes, most DSCR lenders require 6-12 months of PITIA payments in reserves. Reserves can be in checking, savings, retirement accounts (60% of value), or investment accounts.
What are current DSCR loan rates?
DSCR rates are typically 1-2% higher than conventional investment property rates. Current rates vary based on credit score, LTV, DSCR ratio, and prepayment penalty choice. Get a custom quote to see your actual rate.

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