Program Overview
DSCR Loans — Qualify on the Property's Cash Flow, Not Yours
Debt Service Coverage Ratio (DSCR) loans are the cornerstone financing tool for buy-and-hold real estate investors. Unlike conventional loans that require W-2s, tax returns, and personal income verification, DSCR loans are underwritten based on whether the property generates enough rental income to cover its mortgage payment.
This makes DSCR loans the ideal solution for self-employed investors, high-net-worth individuals with complex tax returns, and portfolio builders who want to scale without limitations on the number of properties they can finance. No income documents. No employment verification. The property qualifies itself.
How DSCR Is Calculated
DSCR = Gross Monthly Rental Income ÷ Monthly PITIA
(Principal + Interest + Taxes + Insurance + HOA)
- DSCR 1.25+ — Strong cash flow; qualifies for best rates and highest LTV (up to 80%)
- DSCR 1.0–1.24 — Property covers its payment; qualifies on most standard programs
- DSCR 0.75–0.99 — Slight negative cash flow; still possible with 25–30% down on select programs
- No-Ratio DSCR — Income verification waived entirely; available on some lender programs
Who This Program Is For
Self-Employed & Business Owners
Your tax returns show minimal net income after write-offs. DSCR doesn't care. The property's rent roll qualifies the loan — not your Schedule C. Keep your deductions and still get financed.
Portfolio Builders & Landlords
Fannie Mae conventional loans cap you at 10 financed properties. DSCR has no such limit. Each property stands on its own merits — build a portfolio of 20, 50, or 100+ doors with no artificial ceiling.
Foreign Nationals
U.S. credit history not required on select programs. Foreign national investors can qualify for DSCR loans with an ITIN or passport, subject to specific lender guidelines. Available in most of our licensed states.
Short-Term Rental (STR) Investors
Airbnb, VRBO, and other short-term rental income is accepted on most DSCR programs using AirDNA or Mashvisor market rent data. Finance your STR portfolio the same way traditional landlords finance theirs.
Eligible Property Types
- Single-family residences (long-term and short-term rental)
- 2–4 unit residential properties (duplex, triplex, quadplex)
- Condominiums and townhomes (warrantable and some non-warrantable)
- Vacation rentals and STR properties
- 5–10 unit properties on select portfolio programs
Cash-Out Refinance Available
Already own rental properties free-and-clear or with significant equity? Use a DSCR cash-out refinance to pull equity from your portfolio and redeploy capital into new acquisitions — without showing a single pay stub. Max cash-out LTV typically 70–75% depending on DSCR and credit profile.
Frequently Asked Questions
Do I need to show any personal income to qualify?
No. DSCR loans do not require personal income documentation, tax returns, W-2s, or pay stubs. Qualification is based entirely on the property's rental income relative to the proposed mortgage payment. Your personal income situation is irrelevant to the approval decision.
What DSCR ratio do I need to qualify?
Most standard programs require a minimum DSCR of 1.0, meaning the property's rental income at least covers the full mortgage payment. Some programs go as low as 0.75 with a larger down payment (30%+). A DSCR of 1.25+ typically qualifies for the best rates and terms. "No-ratio" options exist where DSCR is not calculated at all.
Can I use a DSCR loan for a short-term rental (Airbnb)?
Yes. Many of our DSCR lenders accept short-term rental properties. For STR income, we typically use market rent data from AirDNA or Mashvisor rather than personal income history. The property must be in an STR-friendly market and not subject to local restrictions that would prevent rental use.
How many DSCR loans can I hold at the same time?
There is no limit on the number of DSCR loans you can hold. Each loan is underwritten independently based on the property's cash flow and your overall financial profile. This is one of the primary advantages of DSCR over conventional financing, which caps you at 10 financed properties under Fannie/Freddie guidelines.
Can I do a cash-out refinance with a DSCR loan?
Absolutely — cash-out DSCR refinances are one of the most powerful portfolio-building tools available. Pull equity from existing rentals and use the proceeds to fund down payments on new acquisitions. Max cash-out LTV is typically 70–75% depending on your DSCR, credit score, and the lender's guidelines.
What is the minimum credit score for a DSCR loan?
Most DSCR programs require a minimum 640 credit score, though some programs go as low as 620. Higher credit scores (720+) typically unlock the best rates and highest LTV options. A strong DSCR can sometimes offset a slightly lower credit score — contact us to discuss your specific profile.