A DSCR loan (Debt Service Coverage Ratio) qualifies you based on whether a rental property’s income covers its own mortgage payment — not your personal income or tax returns. It’s one of the most widely used tools for real estate investors scaling a portfolio.
Why investors use DSCR loans
- No personal income or employment verification required
- Qualification based on the property’s rent versus its expenses
- No limit on the number of financed properties (unlike many conventional investor programs)
- Available for purchase or refinance, including cash-out for further investment
- Works for single-family rentals, small multifamily, and short-term rental properties in many cases
How it’s evaluated
Lenders calculate a ratio of the property’s rental income to its total monthly debt obligation (principal, interest, taxes, insurance, and HOA if applicable). A ratio at or above 1.0 means the property covers itself; many lenders will still work with ratios below that, with adjusted terms.
We offer competitive rates on DSCR financing.
