DSCR Loans for
Real Estate Investors
Qualify for investment property financing based
on rental income instead of personal income.
What Is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) allows real estate investors to qualify for financing based on the income generated by the property rather than their personal income. This makes DSCR loans ideal for rental property investors, short-term rental owners, and those building large real estate portfolios.
Investor Guides and Strategies
No Personal Income Required
Qualify Using Rental Income
Ideal for Real Estate Investors
Flexible Property Types
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Get Pre-Approved
for an Investment Property Loan
If you are looking to purchase or refinance an investment property, a DSCR loan may be the ideal solution. Our investor loan programs allow you to qualify using rental income rather than personal income, making it easier to scale your real estate portfolio.
DSCR Loan Requirements
DSCR loan requirements are designed specifically for real estate investors. Instead of verifying personal income, lenders evaluate the rental income generated by the property to determine eligibility. Most DSCR loans require a minimum credit score, a down payment, and a property that produces enough rental income to cover the mortgage payment.
Minimum Credit Score
Most DSCR lenders require a credit score between 620 and 680 depending on the loan program and down payment amount.
Down Payment
DSCR loans typically require a 20% to 25% down payment depending on the property type and borrower profile.
Minimum DSCR Ratio
Most lenders require a DSCR ratio of 1.0 to 1.25. This means the rental income must equal or exceed the mortgage payment.
Eligible Property Types
DSCR loans can be used for single-family homes, condos, townhomes, and small multi-family investment properties.
Benefits of DSCR Loans for
Real Estate Investors
No Personal Income Verification
DSCR loans allow investors to qualify using rental income rather than tax returns, W2s, or employment verification.
Unlimited Investment Properties
Many DSCR loan programs allow investors to finance multiple properties without the traditional mortgage limits.
Faster Loan Approvals
Because lenders focus on property income rather than personal finances, DSCR loans often close faster than conventional mortgages.
Ideal for Real Estate Investors
DSCR loans are designed specifically for rental property investors building long-term real estate portfolios.
DSCR loans offer several advantages for real estate investors compared to traditional mortgage financing. Because the loan qualification is based on rental income rather than personal income, investors can scale their portfolios faster and qualify for additional properties without strict debt-to-income limitations.
DSCR Loan vs Traditional Investment Loan
Real estate investors often compare DSCR loans with traditional investment property mortgages. The biggest difference is how borrowers qualify. Traditional loans require verification of personal income and strict debt-to-income ratios, while DSCR loans qualify borrowers based primarily on the rental income generated by the property.
DSCR Loan
• Qualification based on rental income
• No personal income verification required
• Ideal for investors scaling portfolios
• Flexible property eligibility
VS
Traditional Investment Loan
• Qualification based on personal income
• Strict debt-to-income requirements
• Limited number of financed properties
• Slower underwriting process