The loan that qualifies on cash flow, not income.
Debt Service Coverage Ratio loans let real estate investors qualify based on what the property earns, not what they personally earn. W-2, 1099, or self-employed.
Check a property's DSCR
1.24
Qualifies with most DSCR programs.
DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, association dues). Program guidelines vary.
- Down Payment
- 20-25% typical
- Loan Term
- 30, 40-yr options
- Who Qualifies
- Investors, self-employed
- Speed
- Close in 21-30 days
Income from the property. Not from you.
A DSCR loan, Debt Service Coverage Ratio, is an investment property loan that qualifies you based on the rental income the property generates, not your personal tax returns, W-2s, or pay stubs.
The formula is simple: if the property's monthly rent covers the monthly mortgage payment (and then some), you qualify. This makes DSCR loans the go-to financing tool for real estate investors who are self-employed, have complex income, or are scaling beyond what traditional lenders will accommodate.
Who it’s for
- Real estate investors acquiring rental properties
- Self-employed borrowers with non-traditional income documentation
- Investors scaling a portfolio beyond conventional loan limits
- Business owners who keep income inside their entity
- Out-of-state investors purchasing in high-cash-flow markets
How it works.
- 1
Identify the property
We calculate the expected rental income, typically using a lease or market rent appraisal.
- 2
Calculate the DSCR ratio
Net Operating Income divided by annual debt service. A ratio of 1.0+ typically qualifies. 1.25+ gets the best rates.
- 3
Submit your application
No tax returns required. No income verification against your personal earnings. Just the property numbers.
- 4
Close and cash flow
Most DSCR deals close in 21-30 days. Rinse and repeat for your next acquisition.
DSCR at a glance
- No personal income verification required
- Works for single-family, multi-unit, short-term rentals
- Available for LLCs and entities
- Can be used on multiple properties simultaneously
- Interest-only options available on some programs