Long-Term Rental Financing Qualified by Property Cash Flow
Skip the personal income documentation. DSCR loans qualify your rental property based on its own rental income — ideal for buy-and-hold investors scaling a portfolio.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio — a measure of whether a rental property's income covers its debt payment. Instead of evaluating a borrower's personal income, tax returns, and debt-to-income ratio, DSCR loans qualify the loan using the subject property's actual or projected rental income compared to its monthly mortgage obligation.
That makes DSCR financing a natural fit for self-employed investors, those with complex tax returns, and investors scaling a rental portfolio who don't want their personal income to be the bottleneck on how many properties they can finance.
Who This Program Is For
- Buy-and-hold investors acquiring or refinancing rental property
- Self-employed investors with non-traditional income documentation
- Investors exiting a fix and flip or construction loan into a long-term hold
- Portfolio investors scaling beyond conventional loan limits
Typical Loan Snapshot
| Rates | As low as 5.49% |
|---|---|
| Leverage | Up to 80% LTV (purchase/refinance); up to 75% LTV (cash-out) |
| Loan Amount | $100,000 – $2,000,000 |
| Term Length | 30-year fixed; adjustable options available |
| Property Types | 1-4 unit non-owner-occupied rentals |
| Qualification | Property cash flow (DSCR) — no personal income/DTI required |
| Documentation | No tax returns or employment verification required |
Rates and leverage shown reflect our typical range and are not guaranteed for any individual borrower. Actual pricing, leverage, and terms are determined during underwriting based on the specific deal.
Tip: A signed lease or an appraiser's market rent estimate is typically all that's needed to document income for qualification.
Not Sure Your Property Qualifies?
Use our free calculator to estimate your DSCR in seconds.
Try the DSCR CalculatorDSCR Loan FAQs
What does DSCR stand for and how is it calculated?
DSCR stands for Debt Service Coverage Ratio. It is calculated by dividing the property's gross rental income by its total monthly debt obligation (principal, interest, taxes, insurance, and HOA dues where applicable). A DSCR of 1.0 means the property's income exactly covers its debt payment.
Do DSCR loans require tax returns or income verification?
No. DSCR loans are qualified based on the subject property's rental income rather than the borrower's personal income, tax returns, or employment history, which is why they are popular with self-employed investors and those building larger portfolios.
Can I use a DSCR loan for a property I haven't rented out yet?
Yes. Many DSCR loans qualify off of projected market rent, determined by an appraiser, even if the property is not yet leased.
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