Investor & DSCR Loans

Smarter financing built for real estate investors — not just homeowners

What Is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan is a specialized mortgage designed for real estate investors who want to qualify based on property cash flow, not personal income. Instead of using W-2s or tax returns, lenders focus on how well the property’s rental income covers its mortgage payment — making it ideal for investors growing rental portfolios or purchasing short-term rentals.

How DSCR Works

The DSCR measures how much income a property generates compared to its total debt payments.

For example, if your property brings in $2,000 per month and the total monthly payment is $1,600, your DSCR is 1.25.

A DSCR of 1.0 or higher generally means the property’s income covers the loan — making approval faster and simpler than traditional underwriting.

Key Features

  • No Income Verification: Approval based on property performance, not pay stubs or tax returns
  • Flexible Property Types: Single-family homes, condos, townhomes, or 2–4 unit properties
  • Short-Term and Long-Term Rental Options: Works for Airbnb, VRBO, and traditional leases
  • Nationwide Programs: Available in most states with competitive rates for experienced or first-time investors
  • Cash-Out Refinance Options: Access equity for new property acquisitions or renovations

Who It’s Best For

DSCR loans are ideal for:

  • Investors expanding their real estate portfolios
  • Landlords seeking cash flow–based financing
  • Buyers purchasing short-term rental properties
  • Self-employed borrowers or those with complex tax returns

Advantages Over Traditional Loans

Unlike conventional mortgages that rely on personal debt-to-income ratios, DSCR loans unlock opportunities for investors who may not “fit the box.” They simplify approval, reduce paperwork, and focus on what matters most — the property’s ability to generate profit.

Example DSCR Calculation

MetricExample Value
Monthly Rent Income$2,000
Total Monthly Payment$1,600
DSCR = 2,000 Ă· 1,600 = 1.25âś… Qualifies

A higher DSCR means stronger cash flow and better loan terms.

Ready to Grow Your Portfolio?

Whether you’re acquiring your first rental property or scaling to multiple units, we’ll help you structure financing around your investment goals — not outdated income rules.

Get Pre-Qualified Today