DSCR Investor Loans
Investment property financing qualified on the property's rental income rather than your personal income — no tax returns or employment verification.
DSCR Loans at a Glance
Program Highlights
✓ No W-2s or tax returns needed
✓ Qualify based on property cash flow
✓ Close in LLC or entity name
✓ Short-term rentals (Airbnb/VRBO) eligible
✓ Unlimited financed properties
Requirements
✓ 660+ credit score (best rates at 740+)
✓ 20-25% down payment
✓ 6 months reserves
✓ Lease agreement or market rent appraisal
✓ Investment property only (no owner-occupied)
How DSCR Loans Work
The DSCR Process
Property & Rent Analysis
We start with the lease agreement or a market rent appraisal to establish the property’s gross rental income.
DSCR Calculation
Rental income divided by PITIA. A ratio of 1.0 means rent covers the payment; the best pricing starts at 1.25 and up.
Underwriting
No W-2s, no tax returns, no employment verification. Qualification rests on the property, plus credit and reserves.
Close in Your Entity
Close in the name of your LLC or other entity, with no cap on the number of financed properties.
Who DSCR Works Best For
Buy & Hold Investors
Qualify on the property’s cash flow rather than your personal debt-to-income ratio.
Short-Term Rental Owners
Airbnb and VRBO properties are eligible, with income evaluated on the rental performance.
Self-Employed Investors
Write-offs that shrink your taxable income have no effect here — the property qualifies itself.
Portfolio Builders
No limit on financed properties, so the program scales as your portfolio grows.
Andrew Baker · NMLS 2688601 · (949) 665-9090
Common Questions
What is a DSCR loan?
A DSCR loan qualifies on the investment property's income rather than the borrower's. The lender compares gross rent against principal, interest, taxes, insurance, and association dues to produce a debt service coverage ratio. Personal income documentation is generally not part of the file.
Do DSCR loans require tax returns?
Generally no. Because qualifying runs on the property's rental income, personal tax returns and employment income are usually not required. Lenders typically do want leases or a market rent analysis, credit, reserves, and standard property documentation. Requirements vary by lender.
What DSCR ratio do lenders want?
Program minimums vary by lender, and the ratio compares gross rent to the property's principal, interest, taxes, insurance, and dues. A higher ratio generally opens more program options and better pricing tiers. Some lenders will consider ratios below 1.0 with compensating factors such as a larger down payment.
Can I close a DSCR loan in an LLC?
Most DSCR lenders permit closing in an LLC or other entity, since these are business-purpose loans rather than consumer mortgages. Expect a personal guarantee, entity documentation, and an operating agreement in the file. Requirements differ between lenders, so entity structure is worth confirming before you are under contract.
Ready to Get Started?
Fill out our quick form or apply directly through one of our lender portals.