📈 DSCR Loans
Qualify on the property’s cash flow — not your tax returns.
A DSCR (Debt Service Coverage Ratio) loan sizes your approval on one clean question: does the property’s rent cover its monthly payment? If the answer is yes — or close to it — you can finance an investment property without handing over tax returns, W-2s, or pay stubs. It’s the workhorse loan of modern real estate investing.
Is this you?
DSCR Loans tend to be a great fit for…
- Investors whose tax returns understate their real income (hello, depreciation)
- Self-employed buyers who write off aggressively and don’t want to un-write-off for a lender
- Portfolio builders adding doors past the conventional 10-property ceiling
- Buyers who want to close in an LLC and keep the property off their personal DTI
- Short-term and mid-term rental operators with strong revenue but messy "income"
Questions investors actually ask
DSCR Loans: straight answers
How is DSCR actually calculated?
Gross monthly rent divided by the property’s full monthly payment — principal, interest, taxes, insurance, and any HOA dues (PITIA). Rent of $2,600 against a $2,150 PITIA is a DSCR of about 1.21. Most programs want to see roughly 1.0 or better, and stronger ratios generally earn better pricing. Exact minimums vary by program and change over time.
What rent figure gets used — actual lease or market rent?
Typically the lower of the executed lease or the market rent from the appraiser’s rent schedule (Form 1007). Vacant properties usually use the market rent figure. Short-term rental income treatment varies by program — ask us before you assume Airbnb revenue counts.
Can I close in my LLC?
LLC vesting is one of the biggest reasons investors choose DSCR loans, and many programs allow it. Guidelines on entity type, guarantors, and documentation vary — bring your operating agreement and we’ll map the cleanest path.
Are DSCR rates higher than conventional?
Generally yes — you’re paying a premium for dramatically lighter documentation and investor-friendly structure. Many investors decide the trade is worth it; the honest way to know is to run your actual numbers side by side, which is exactly the kind of comparison we do every day.
What about prepayment penalties?
Many DSCR loans carry a prepayment penalty period (often structured as a step-down over the first few years) in exchange for better pricing, and penalty buy-downs or buy-outs are frequently available. Rules also differ by state. It’s a lever, not a landmine — we’ll walk through the options before you lock anything.
Keep exploring
Bank Statement Loans
Your deposits tell the income story — 12 or 24 months of statements instead of tax returns.
Learn more →1099-Only Loans
Qualify straight off your 1099s — no tax returns, no expense archaeology.
Learn more →P&L-Only Loans
A CPA-prepared profit & loss statement stands in for the entire income file.
Learn more →Not sure if DSCR loans fit your deal?
That’s literally what the team is for. One text, all your options side by side, zero pressure to move forward.