DSCR Loans
The rent qualifies the loan.
Debt service coverage ratio loans qualify an investment property on its own rental income. No tax returns, no personal debt-to-income calculation, and no limit on how many properties you own.
What makes this loan different
- Qualified on rent versus payment, not personal income
- No tax returns or employment documentation
- Unlimited financed properties with most lenders
- Title can be held in an LLC
Who this is built for
- Buy-and-hold investors scaling a portfolio
- Self-employed buyers with complex returns
- Anyone capped out by conventional property limits
How the ratio works
DSCR is gross rent divided by the full monthly payment including taxes, insurance, and any HOA dues. A property renting for $3,000 with a $2,500 payment carries a 1.20 ratio. Most lenders want 1.00 or better, and many will fund below 1.00 with a larger down payment.
Rent is supported by a signed lease or by the appraiser's market rent schedule, so a vacant property can still qualify.
Structure and pricing
Thirty-year fixed, interest-only, and ARM options are all common. Prepayment penalties are typical and are usually a pricing choice: accept a three-year step-down and the rate improves, buy the penalty away and it does not.
What lenders typically ask for
- A signed lease, or the appraiser's market rent schedule (Form 1007) where the property is vacant
- Entity formation documents when title is held in an LLC, plus the operating agreement
- Credit report and ID
- Asset statements covering down payment, closing costs, and reserves
- Property insurance quote, HOA documentation where applicable, and the purchase contract
Requirements vary by lender and by file. This is a general picture of what is commonly requested, not a checklist for a specific loan.
Worth knowing
Prepayment penalties are usually part of the structure.
Most DSCR programs carry one, and it is often a pricing lever rather than a fixed term — accepting a multi-year step-down typically improves the rate, and buying the penalty away typically costs some of that back. Worth deciding deliberately rather than discovering at closing.
A ratio below 1.00 is not automatically the end.
Many lenders will work below break-even with additional down payment, though pricing and reserve requirements tighten as the ratio falls. Where the line sits varies considerably.
Short-term rental income is treated inconsistently.
Some lenders accept documented short-term rental history, some discount it, and some require a long-term market rent figure instead regardless of what the property actually earns. This is a lender-selection question more than a property question.
Business purpose only.
These are investment-property programs. A property the borrower intends to occupy does not fit, and occupancy misrepresentation on a business-purpose loan is a serious matter.
A personal guarantee is common even with LLC title.
Holding title in an entity does not usually mean the borrower is off the hook personally. The guarantee structure should be understood before anyone treats the entity as a liability shield.
See what this program would take in your case.
We are brokers — this program is shopped across hundreds of wholesale lenders, not quoted off one rate sheet. A short application gives us enough to compare real options.
Program availability, terms, guidelines, and documentation requirements vary by lender and are subject to underwriting and change without notice. This is not a commitment to lend.