DSCR loans are specifically designed for real estate investors who want to purchase or refinance investment properties. Unlike traditional mortgages that focus on your personal income, DSCR loans are underwritten based on the property's ability to generate income through rent.
The Debt Service Coverage Ratio is calculated by dividing the property's annual net operating income by its annual debt service (mortgage payments). A DSCR of 1.0 means the property generates enough income to cover its mortgage payments. Most lenders require a minimum DSCR of 0.75 to 1.25, depending on the loan program.
Qualify based on property rental income, not personal W-2 income. Perfect for self-employed investors.
Loan terms from 5 to 30 years with fixed or adjustable rates. Choose what works best for your portfolio.
Finance single-family rentals, multi-unit properties, commercial buildings, and mixed-use properties.
Rates typically 0.5% to 1.5% higher than conventional mortgages, reflecting the investment property risk.
Borrow up to $3M+ for qualified investment properties with strong cash flow.
Build your investment portfolio with multiple DSCR loans across different properties.
Minimum 620 FICO score. Scores above 680 qualify for better rates.
20-30% down payment required. Some programs allow 15% with compensating factors.
Minimum 0.75 DSCR for most programs. Higher ratios (1.0+) qualify for better terms.
6-12 months of mortgage payments in liquid reserves. Demonstrates financial stability.
Single-family rentals, 2-4 unit properties, apartment buildings, commercial properties, mobile homes, and mixed-use buildings.
Property must be in good condition with no major structural issues. Appraisal required.
Lease agreements, rent rolls, and 12 months of bank statements showing rental deposits.
DSCR loans allow you to qualify based on your rental income, not your personal tax returns. You can finance additional properties without showing W-2 income.
Traditional lenders struggle with self-employed income. DSCR loans focus on the property's income, making qualification straightforward.
DSCR loans enable portfolio lending with multiple properties financed under one program, streamlining the process.
Qualify based on property income, not personal income
Ideal for self-employed and business owners
Faster approval process than traditional mortgages
Flexible underwriting for non-traditional borrowers
Build your investment portfolio efficiently
Access to larger loan amounts
Multiple property financing options
Competitive rates for qualified borrowers
Most lenders require a minimum DSCR of 0.75 to 1.0. Some programs accept lower ratios (0.70) with compensating factors like larger down payments or cash reserves.
No, DSCR loans are designed exclusively for investment properties. Primary residences require traditional mortgages.
DSCR = Annual Net Operating Income รท Annual Debt Service. For example, if a property generates $50,000 in annual NOI and the mortgage payment is $40,000 annually, the DSCR is 1.25.
Lease agreements, rent rolls, 12 months of bank statements showing rental deposits, property tax returns, and personal financial statements.
Typically 7-14 days for pre-approval, and 21-30 days for full approval, depending on documentation completeness.