DSCR Loan Program
DSCR Loan Program (Debt Service Coverage Ratio)
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The DSCR Loan Program is designed for real estate investors who want to qualify for a mortgage based on the cash flow of the property, rather than their personal income. Instead of reviewing tax returns, W-2s, or pay stubs, lenders evaluate whether the rental income of the property can cover the monthly mortgage payment.This program is ideal for investors who own multiple properties, are self-employed, or prefer a simplified qualification process.
How DSCR Loans Work Qualification is based on the property’s rental income. The DSCR ratio compares rental income to the monthly mortgage payment. No personal income or employment verification required. Common DSCR ratios range from 0.75 to 1.25, depending on the lender
Who Are DSCR Loans For?
DSCR loans are a great fit if you:Are a real estate investorOwn or plan to own rental propertiesWant to avoid traditional income documentationHave multiple properties or complex incomeAre purchasing in your personal name or LLC (program-dependent)
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Eligible Property Types
Single-family rentalsMulti-family properties (2–4 units)Condos and townhomesShort-term rental properties (Airbnb-friendly, lender-dependent)Mixed-use investment properties
Key Benefits
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No tax returns, W-2s, or pay stubs required. Qualification based on property performance. Available for purchase, refinance, and cash-out. Scalable financing for growing investors. Flexible underwriting compared to conventional loans.
What to Expect
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DSCR loans typically require: Higher down payment than owner-occupied loans. Strong credit profile. Rental income supported by lease agreements or market rent analysis. Different rates and terms compared to traditional mortgages. Despite this, DSCR loans are one of the most popular programs for investors seeking flexibility and scalability.
