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DSCR Loans

Qualify for an investment property loan based on the property's rental income, not your personal income, tax returns, or employment. Available for business purpose loans in most states nationwide.

How DSCR Loans Work

A DSCR loan evaluates the property, not the borrower's personal income. The Debt Service Coverage Ratio is calculated by dividing the property's gross rental income by the total mortgage payment (PITIA, principal, interest, taxes, insurance, and HOA). If the ratio is 1.0 or higher, the property's income covers the debt, and you qualify.

This means no W-2s, no tax returns, no employer verification. You can close in an LLC or entity name. It's the preferred financing tool for serious real estate investors who want to scale without the documentation headaches of conventional lending.

DSCR Loan Highlights

  • No personal income verification
  • No tax returns or W-2s needed
  • Close in LLC or entity name
  • Loan amounts for single doors to large portfolios
  • Better pricing as your DSCR rises
  • Interest-only options available
  • single-family through multi-unit properties eligible
  • Purchase and refinance

DSCR Loan FAQ

What DSCR ratio do I need to qualify?
Most lenders require a minimum DSCR of 0.75 to 1.0, and pricing generally improves as the ratio rises above 1.1. Some programs allow ratios below 1.0 (where rent doesn't fully cover the payment) with additional reserves or a lower LTV. I'll run the numbers on your specific property to determine your options.
Can I use a DSCR loan for a short-term rental or Airbnb?
Yes, many DSCR programs accept short-term rental income. Some lenders use AirDNA projections, others require 12 months of booking history. I work with lenders who accept both approaches depending on your situation.
What's the minimum down payment?
Down payment requirements depend on the property, your credit, and the strength of the DSCR, and a stronger profile can mean less down. Cash-out refinances have their own limits. I'll walk you through what applies to your specific scenario.
How many DSCR loans can I have?
There's no standard limit like conventional loans. Most DSCR lenders allow multiple simultaneous loans, some cap at 10, others at 20+. Your total exposure, credit, and liquidity are the real factors.
Can I do a DSCR loan outside of California?
Yes. DSCR loans are business purpose loans, which means I can originate them in most states nationwide, not just the 9 states where I'm licensed for primary residence lending. Apply online or call me to discuss your specific state and scenario.

Get a DSCR Loan Quote

Send me the property address and expected rent, I'll have numbers back to you the same day.

(248) 925‑0539