DSCR Investment Loans
What Is a DSCR Loan?
DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors who want to qualify for financing based on the property's rental income rather than personal income documentation.
Perfect for self-employed investors or those building rental portfolios, DSCR loans simplify the qualification process by focusing on what matters most — can the property pay for itself?
Benefits of DSCR Loans
Discover why DSCR loans are the preferred choice for real estate investors building wealth through rental properties.
No Income Documentation
Qualify based on property cash flow, not personal income. Perfect for self-employed investors or those with complex income situations.
Investment-Focused Lending
Designed specifically for rental properties. Finance 1-4 unit investment properties with competitive rates based on income generation.
Unlimited Properties
Unlike conventional loans with 10-property limits, DSCR loans allow unlimited investment property financing to scale your portfolio.
DSCR Ratio Focused
Loan approval based on Debt Service Coverage Ratio. Properties with DSCR of 1.0+ (rental income covers mortgage) qualify for the best rates.
Competitive Rates
Attractive interest rates for investment properties. Rates are competitive compared to other investment loan options available today.
LLC or Personal Name
Finance properties in your business or personal name. Flexibility to hold title through your business entity for liability protection.
DSCR Calculation Example
See how lenders calculate DSCR to determine if your investment property qualifies.
Sample Investment Property
DSCR Qualification Guide
DSCR ≥ 1.25 — Excellent
Best rates and terms available
DSCR 1.0 – 1.24 — Good
Qualifies with competitive terms
DSCR 0.75 – 0.99 — Available
Higher rates, still qualifies
Formula: DSCR = Monthly Rent ÷ Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA)
DSCR Loan Requirements
Here's what lenders look at when evaluating your DSCR loan application.
DSCR Ratio
Minimum 0.75–1.0 DSCR, with best rates at 1.25+
Down Payment
Typically 15–25% down depending on DSCR and credit
Credit Score
Minimum 620–680, depending on DSCR and loan amount
Property Type
Investment properties only — 1-4 unit residential rentals
Loan Amount
Up to $2M+ with no conforming loan limits
Who Benefits from DSCR Loans?
Ideal Borrowers
- Self-employed investors with complex income
- Building a rental portfolio with multiple properties
- Foreign nationals investing in U.S. real estate
- Investors who want to skip income documentation
Potential Drawbacks
- Higher interest rates than owner-occupied financing
- Requires 15–25% minimum down payment
- Only available for investment properties, not primary residences
DSCR Loan FAQs
Compare Other Loan Programs
Not sure if a DSCR loan is right for you? Explore these alternative financing options.
VA Loans
No down payment for veterans and service members
Learn MoreConventional
Flexible financing with as little as 3% down
Learn MoreFHA Loans
3.5% down with flexible credit requirements
Learn MoreUSDA Loans
Zero down payment for rural and suburban homes
Learn MoreFix & Flip
Short-term financing for property renovations
Learn MoreReady to Grow Your Investment Portfolio?
Get pre-qualified for a DSCR loan and start building your rental empire
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