DSCR or Debt-Service Coverage Ratio

⚠️ Friendly Reminder:

Every program has its own guidelines, and eligibility isn’t guaranteed. The best way to find out what you qualify for is to speak with a licensed loan expert who can review your full financial picture.

🏘️ What Is a DSCR Loan?

A DSCR loan is a type of investment property loan that uses rental income to qualify — not your personal income, W-2s, or tax returns. DSCR stands for Debt-Service Coverage Ratio, which measures how well the property’s rent covers the mortgage.

🔑 Key Features

  • No personal income documentation required

  • Qualifies off rental income (real or market rent)

  • Designed for real estate investors, not owner-occupants

  • No limit on the number of financed properties

  • Loan amounts up to $2M+

  • Fixed and ARM options available

  • Interest-only available

  • No job history or tax returns needed (but credit and reserves still matter)

📊 What Is DSCR?

DSCR = Gross Rent ÷ PITIA

  • 1.00+ = Property breaks even or cash flows (ideal)

  • >1.00 = Positive cash flow (most lenders prefer this)

  • <1.00 = Negative cash flow — still allowed by some lenders with strong compensating factors

🛠️ Common Qualifications

  • FIC0 660+ (Some lenders go as low as 620)

  • MAX LTV 75-80% on Purchase/ 70-75% on Cash Out

    • There are some lenders that will go up to 85% on purchase and offer a closed end second up to a CLTV of 65%.

  • DSCR Minimum: 1.00 (Some allow .75 or negative ratios depending on assets and reserves.

  • Property Type: Single Family Residence, condos, 2-4 Units, townhomes.

  • Occupancy: Investment Properties only (Some property profiles like 2-4 unit occupied may qualify with specific lenders.)

  • Income Qualification: 1007D Appraisal for market rent, or, Lease Agreement

Invest Smarter with DSCR Loans


If you’re looking to qualify based on rental income — not personal income — a DSCR loan could be the key to your next investment.

Whether it’s short-term rentals, long-term leases, or building your portfolio, I’ll walk you through the numbers, compare terms, and show you how to leverage your property’s income potential.

No tax returns. No employment verification. Just a clear path to funding your investment strategy.