What is a DSCR Loan?
A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on the rental income a property generates — not the borrower's personal income, W-2s, or tax returns. If the property's rent covers its debt payments, you qualify.
This is the go-to product for investors who:
- ◆ Own multiple rental properties and want to keep scaling without hitting DTI limits
- ◆ Are self-employed with complex tax returns that don't reflect true income
- ◆ Want to close fast without the paperwork overhead of conventional loans
- ◆ Invest through LLCs or business entities
- ◆ Own short-term rentals (Airbnb, VRBO) and want to use rental projections
Program Highlights
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No income documentation — No W-2s, pay stubs, or tax returns. Qualification is based entirely on the property's cash flow.
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Close in LLCs — Vest directly in your business entity. No need to close in personal name first.
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30-year fixed & ARM options — Lock in long-term rates or take advantage of lower ARM pricing.
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Interest-only available — Maximize cash flow with I/O periods on qualifying properties.
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Purchase & cash-out refinance — Use for acquisitions or pull equity from existing rentals.
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Short-term rental income — Use Airbnb/VRBO projections for STR properties.
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No limit on properties owned — Scale your portfolio without conventional loan caps.
Typical Requirements
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DSCR Ratio: Minimum 1.0x (some programs allow 0.75x with rate adjustment)
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Credit Score: 660+ (lower scores may qualify with higher down payment)
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Down Payment: 20–25% for purchase (varies by DSCR and credit)
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Property Types: SFR, 2-4 units, condos, townhomes, 5-8 units (select lenders)
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Loan Size: $100K to $5M+ (jumbo programs available)
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Seasoning: 3-6 months for cash-out refinance