DSCR Loans — Qualify on Rental Income, Not Your W-2
DSCR (Debt Service Coverage Ratio) loans are the #1 financing tool for real estate investors. Instead of verifying your personal income, we qualify the loan based on the property’s rental income vs. its debt payment. If the property cash flows, you qualify.
DSCR Loan Highlights
- No personal income documentation — no tax returns, no W-2s
- Qualify using the property’s rental income
- DSCR as low as 1.0 (breakeven cash flow)
- Up to 80% LTV on purchase, 75% on cash-out
- Loan amounts from $75,000 to $3M+
- 30-year fixed, 5/1 ARM, interest-only options
- Single-family, 2–4 units, short-term rentals (Airbnb/VRBO)
- Close in 14–21 days
How DSCR Is Calculated
DSCR = Monthly Rental Income ÷ Monthly Debt Payment (PITIA). A DSCR of 1.25 means the property earns 25% more than it costs. Most lenders want 1.20+. We have programs down to 1.0 and even some below 1.0 for strong borrowers.
Example — Qualifies
Rent: $2,500/mo
Payment: $1,800/mo
DSCR: 1.39 ✅
Example — Borderline
Rent: $2,000/mo
Payment: $1,900/mo
DSCR: 1.05 — ask us
Who Uses DSCR Loans?
- Self-employed investors with complex tax returns
- Investors with multiple properties (high DTI)
- Borrowers who’ve maxed conventional Fannie/Freddie limits
- Anyone who wants a faster, simpler underwrite
Short-Term Rental DSCR
Own an Airbnb or VRBO? We can use AirDNA or rental survey data to estimate income — no lease required. STR DSCR loans are available on eligible properties.
Get a DSCR Loan Quote Today