Why investors choose DSCR
- No personal income verification in most cases. No W-2s or tax returns needed.
- Qualify on the property's rent. The loan is based on the cash flow of the rental.
- Grow your portfolio. Your personal debt-to-income ratio isn't the main focus.
- Buy or refinance, including cash-out on properties you already own.
- Close in your name or an LLC with many programs.
How DSCR works
Lenders compare the property's monthly rent to its monthly housing costs: principal, interest, taxes, insurance, and HOA dues. When the rent covers those costs, the property "pays for itself," and that's what qualifies you.
Want a quick estimate? Try our DSCR calculator.
Property types
- Single-family homes
- Condos and townhomes
- 2-4 unit properties
- Short-term rentals (with some programs)
Good to know
- Investment properties only. DSCR loans are not for a home you'll live in. If you'll live in it, see Purchase or Refinance.
- Prepayment terms. Many investor loans have a prepayment penalty for a set period. If you plan to sell or refinance soon, tell us and we'll look for the best structure.
- Short-term rentals. Some programs accept vacation rental income. Local rules matter, so share your plans early.
Where this is available
DSCR loans are available in all five licensed states: California, Arizona, Colorado, Florida, and Texas.
Program availability can vary by state and property. Contact us to confirm options for your home.
Frequently asked questions
Do I need to show my personal income?
In most DSCR programs, no. The property's rental income is what counts.
Can I live in the property?
No. DSCR loans are for investment properties only.
Can I use Airbnb or short-term rental income?
Some programs allow it. We'll check what applies to your property.
Can I buy in an LLC?
Many programs allow it. Let us know your plans and we'll match you with the right option.