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Everything You Need to Know About DSCR Loans — and How to Get One
DSCR loans are one of the most powerful — and least understood — financing tools available to real estate investors. This site exists to change that. Learn how they work, run the numbers on your property, and when you're ready, get personalized help from our team.
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What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. It's a straightforward calculation that tells a lender whether a rental property earns enough to cover its own mortgage payment — and it's the basis for an entirely different way of qualifying for an investment property loan.
DSCR = Monthly Rental Income ÷ Monthly Debt Payment
DSCR ≥ 1.0 — Approved
If rental income covers or exceeds the mortgage payment, most lenders will approve the loan. A DSCR of 1.25+ often qualifies for the best rates.
Qualify on the Property's Income
Self-employed investors, landlords with multiple properties, and anyone whose tax returns don't reflect true income can all qualify with DSCR loans.
Why DSCR Loans Are Different
What Makes DSCR Loans So Useful for Investors
Conventional mortgages were designed for owner-occupied homes and salaried borrowers. DSCR loans are structured differently — and that difference matters enormously for real estate investors.
No Personal Income Documents
Skip the pay stubs, W-2s, and tax returns. Qualification is based entirely on the property's rental income — which makes DSCR loans ideal for self-employed borrowers and business owners.
Fast, Predictable Closings
Less documentation means fewer delays and more certainty when you're competing for deals. Our streamlined process is designed to move quickly from application to closing.
Unlimited Property Count
Conventional lenders cap you at 10 financed properties. DSCR loans have no such limit — finance your 11th property as easily as your first.
Short-Term Rentals Eligible
Airbnb and VRBO properties can qualify using market rent or actual rental income — making DSCR loans one of the few financing options that work well for short-term rental operators.
Flexible Loan Structures
30-year fixed, 5/1 ARM, interest-only options, and more. Match your financing to your investment strategy — whether you're holding long-term or planning to refinance.
Entity Vesting Available
Take title in the name of your LLC or corporation for liability protection and estate planning purposes — without losing out on financing.
How It Works
How a DSCR Loan Closes: 4 Steps
One of the biggest advantages of DSCR loans is how much simpler the process is compared to conventional financing. Here's what to expect from start to finish.
Share Your Property Details
A short form covers the basics — property address, estimated rent, and your goals. No personal income documents needed at this stage.
Review Your Options
We review the property's rental income and your credit profile, then send back loan options with rates, terms, and estimated payments — typically within 24 hours.
Submit a Simple File
A few standard documents — lease agreements or rent rolls, entity information if applicable, and credit authorization. No tax returns, no W-2s, no employer letters.
Close and Fund
Appraisal, underwriting, and clear-to-close all move faster without the personal income documentation that slows down conventional loans. You stay focused on the deal.
Loan Options
DSCR Loan Structures Explained
DSCR loans come in several structures. Understanding the differences helps you choose the right one for your investment strategy.
30-Year Fixed
Lock in a rate for the long haul. Best for buy-and-hold investors who want stable monthly payments and predictable cash flow.
5/1 & 7/1 ARM
Lower initial rate if you plan to sell or refinance within a few years. Good for value-add investors with a defined exit strategy.
Interest-Only
Maximize monthly cash flow during the hold period. IO options are available on select products for qualified investors.
Cash-Out Refinance
Pull equity from existing rentals to fund your next acquisition. DSCR cash-out refi with no seasoning requirements on some programs.
Ready to Take the Next Step?
Have Questions? Get Pre-Approved?
We're Here to Help.
Whether you're still learning or ready to move on a specific property — reach out. Questions get answered, numbers get run, and the path to pre-approval gets explained clearly. No pressure, no hard credit pull.
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