Long-term financing for rental properties based on cash flow—not your personal income or tax returns.
A DSCR (Debt Service Coverage Ratio) loan is a long-term mortgage for investment properties where qualification is based on the property's rental income rather than the borrower's personal income. If the property generates enough rent to cover the loan payment, it qualifies—regardless of your W-2, tax returns, or employment status.
The DSCR is calculated by dividing the property's gross monthly rent by the total monthly mortgage payment (principal, interest, taxes, and insurance). Most lenders require a DSCR of 1.0x or higher, meaning the rent at least covers the payment. A ratio of 1.25x or higher typically unlocks the best terms.
Investors building rental portfolios who need scalable financing without the bottleneck of personal income verification on every deal.
Business owners and entrepreneurs whose tax returns don't reflect their true earning power due to write-offs and deductions.
Investors who've completed a rehab and want to refinance out of a short-term loan into permanent, long-term financing.
Airbnb and VRBO investors using projected or actual short-term rental income to qualify for financing on vacation rental properties.
DSCR loan terms vary by lender, property type, and borrower credit profile. These ranges represent what's typically available through our network.
The lender compares the property's monthly rent (actual or market) to the total monthly debt obligation including principal, interest, taxes, and insurance.
Unlike conventional mortgages, DSCR lenders don't ask for W-2s, pay stubs, or tax returns. The property's ability to service the debt is what matters.
Borrower credit score and investment experience influence the rate and leverage offered, but they're not the primary qualification criteria.
DSCR products vary significantly between lenders. We compare terms across our network to find the best rate, leverage, and prepayment structure for your deal.
Whether you're buying your first rental or your fiftieth, we have lenders who can handle individual properties and portfolio-level financing.
Use our free calculator to model your DSCR ratio, monthly payment, and cash flow before you submit a deal.
Submit your property details and we'll match you with DSCR lenders from our network.