DSCR Loans

No Taxes

No 1099

No W2s

Own As Many Properties You Want Grow Your Real Estate Portfolio

We will take the rental income and even AIRBNB income to get you approve!

What is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan is a type of mortgage specifically designed for real estate investors. Instead of relying on personal income verification like traditional loans, DSCR loans focus on the income generated by the property itself.

If the income receive by the rentals can cover the mortgage, taxes, and insurance, the property is approved!

The appraiser does the report for the property valuation and for the estimated rental income the property will generate.

We offer flexible terms, and, in some cases, our loans can be approved in as fast as two weeks. If this is your first time purchasing a rental property, our experienced loan officers can guide you through the process.

When does a Debt Service Coverage Ratio (DSCR) loan make sense?

  • Borrower doesn’t pass the standard DTI calculation.

  • Borrower doesn’t want to produce tax returns.

  • Borrower doesn’t want to use their own income.

  • Borrower owns more properties than Agency programs allow.

How To Calculate The DSCR


Step 1: Calculate Gross Rental Income

To determine your gross rental income, we use the lesser of two amounts: the annual rental income specified in your lease agreement or the amount listed on the appraiser’s comparable rent schedule (Form 1007). Alternatively, if you can provide a 12-month history of long-term rental (LTR) or short-term rental (STR) income, you may qualify using that income instead of the appraiser’s market rent.


Step 2: Calculate Annual Debt

Your annual debt, for loan qualification purposes, includes the total yearly payments for principal, interest, taxes, insurance, and HOA fees (if applicable).


Formula: Annual Debt = Total Annual PITI Payments.


Step 3: Determine Your DSCR

Divide your annual gross rental income by your annual debt to calculate your Debt Service Coverage Ratio (DSCR).

Example of Debt Service Coverage Ratio Calculation

A real estate investor might evaluate a property with a gross rental income of $62,500 and an annual debt of $50,000. Dividing $62,500 by $50,000 results in a Debt Service Coverage Ratio (DSCR) of 1.25.

This means the property generates 25% more income than is necessary to cover the loan payments, indicating a 25% return on investment (ROI) in terms of cash flow from the lender's perspective.

The ideal is 1.2 the higher the better for your interest rate. However, we go as low as 0.75 DSCR Factor.

DSCR Program Overview

  • Loan size: $150,000 to $2,000,000

  • Purpose: Purchase, Refinance, Cash Outs

  • Loan term: 30-Year Fixed

  • Amortization: up to 30 years

  • LTV: up to 80%

  • FICO:

  • SFR: 660 / 2-4 Family: 680

  • DSCR: 0.75x

  • Documentation: No tax returns required

WE CAN DO DSCR LOANS IN THE FOLLOWING STATES:


Alabama, Arkansas, Colorado, Connecticut, Washington DC, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Michigan, Missouri, Montana, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, Wisconsin, Wyoming

Portfolio loans are now available!


We can help your business achieve the simplification and scale it needs by offering options to consolidate or restructure payments in a way that best serves your goals.

  • Min of 3 SFR/2-4-unit properties and $500,000 loan amount

  • Max of 25 properties may be combined into 1 loan

  • Min unit value: $100,000

  • Max loan size: $6,250,000 total

  • Min loan size: $500,000 total

  • Max LTV: Purchase – 80% / Refi – 75%

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This website is intended to provide information regarding Business Purpose Loans, which are non-TRID (TILA-RESPA Integrated Disclosure) loan programs designed to support the financing needs of businesses. Business Purpose Loans are designed strictly for business, commercial, or investment purposes. These loans are not intended for personal, family, or household use. If you are seeking financing for personal use, we recommend you explore other loan options. Terms and eligibility for Business Purpose Loans may vary based on individual qualifications, loan type, and property use. Loans for business purposes may be secured by various types of properties, including residential, multi-family, commercial, or mixed-use properties, as long as the primary use of the loan is for business purposes. It is important to understand that, as part of the loan agreement, the collateral may be subject to foreclosure if the borrower defaults. The information provided on this website is for informational purposes only and does not constitute an offer to lend, a loan approval, or a guarantee of financing. All loan programs are subject to underwriting approval, and the terms, rates, and availability of loan programs may change without notice. We encourage all borrowers to seek professional legal, financial, or tax advice before entering into any loan agreement. Business Purpose Loans can have significant financial implications, and it is important to understand your obligations and rights fully before proceeding with any loan.