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DSCR

DSCR Loans — Finance Rental Properties Without Tax Returns

Traditional lenders qualify investors using personal income and tax returns.

But many real estate investors show little income on paper.

DSCR Prime qualifies investors based on the property’s rental income — not personal tax returns.

Built for real estate investors who want to grow their portfolio without complicated income documentation.

If the property cash flows, you can qualify.

Fast approvals. Flexible underwriting. Designed for real-world investors.

How DSCR Loans Work

DSCR stands for Debt Service Coverage Ratio.

nstead of verifying personal income, lenders evaluate whether the property’s rental income covers the mortgage payment.

DSCR Prime qualifies investors based on the property’s rental income — not personal tax returns.

If the rent supports the loan payment, the property qualifies.

This allows investors to:

• Purchase rental properties faster
• Scale their portfolio without tax return limitations
• Qualify using property performance instead of personal income

Who This Program Helps

Ideal for:

      ✅ Real estate investors purchasing rental property

      ✅ Investors expanding their rental portfolio

      ✅ Self-employed borrowers with complex tax returns

      ✅ Borrowers who write off significant income

      ✅ Foreign nationals investing in U.S. real estate

Starting DSCR Rates From

6.00%

Example scenario:
A 30-year fixed DSCR loan based on an $800,000 purchase price with a $400,000 loan amount, 740 FICO score, and a 1.25 DSCR on a single-family rental property. Rates vary depending on credit profile, property type, and loan structure.

PROGRAM REQUIREMENTS AT A GLANCE

Program Highlights

20% Down

Minimum Down

680+ FICO

Credit Requirement

Up to $2.0M Loan

Max Loan Amount

No Tax Returns

Based on Rental Income

FAQs

How is a DSCR loan calculated?

A DSCR loan is calculated by comparing the property’s monthly rental income to its monthly housing payment.

The formula is:

DSCR = Gross Rental Income ÷ PITIA

PITIA includes:
• Principal
• Interest
• Property Taxes
• Insurance
• HOA (if applicable)

Example:

Monthly Rent: $3,000
Monthly PITIA: $2,500

DSCR = 3,000 ÷ 2,500 = 1.20 DSCR

A DSCR of 1.0 or higher generally means the property’s rental income is enough to cover the mortgage payment.

Yes. First-time real estate investors can qualify for a DSCR loan.
These loans are based primarily on the rental income of the property rather than personal income.

Typical requirements for first-time investors include:
• Minimum DSCR ratio of 1.0
• Minimum credit score of 700

If a unit is vacant, lenders may use the estimated market rent from the appraisal’s Comparable Rent Schedule (Form 1007 or 1025) to calculate DSCR. This rent schedule is prepared by the appraiser and reflects the market rental value for the property based on comparable rental properties in the area.

In most cases, lenders will use up to 75% of the market rent shown on the rent schedule when calculating DSCR. Typically, only one vacant unit may be counted this way, and the maximum LTV may be reduced by approximately 5%.

For foreign national borrowers, vacant units are generally not eligible for refinance and the property typically must have an active lease.

See What You Qualify For

Get Loan Help Fast

Fast response • No pressure • No hard credit check
Built for self-employed borrowers, 1099 earners & investors — even if traditional lenders said no.

Safe & private — we never share your info

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For mortgage industry professionals only. Not all applicants will quality. Assets must be veritied. This is not a commitment to lend.
Loan terms, conditions, and guidelines are subject to change without notice. All loans are subject to credit and underwriting approval.

Mortgage Rates Disclosures

 

The advertised loan is a 15-year Fixed Rate Loan with a 15-year fully amortizing term. The interest rate is 5.250% for 180 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 5.755% APR with a monthly principal and interest payment of $5,838 for 180 months. Interest rate quoted assumes a purchase with 45 day lock pricing at 60% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. Interest rate quoted assumes a purchase of a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes or insurance, actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.


The advertised loan is a 30-year Fixed Rate Loan with a 30-year fully amortizing term. The interest rate is 5.250% for 360 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 5.545% APR with a monthly principal and interest payment of $4,010 for 360 months. Interest rate quoted assumes a purchase with 45 day lock pricing at 60% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes or insurance, actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.

The advertised loan is an FHA 30-year Fixed Rate Loan with a 30-year fully amortizing term. The interest rate is 5.250% for 360 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 6.437% APR with a monthly principal and interest payment of $4,010 for 360 months. Interest rate quoted assumes a purchase at 80% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes, hazard insurance, or mortgage insurance; actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.

This is a VA program. Current guidelines for VA Financing can be found at https://www.benefits.va.gov/homeloans/index.asp . The advertised loan is a VA 30-year Fixed Rate Loan with a 30-year fully amortizing term. The interest rate is 5.250% for 360 months. The disclosed APR is based on the payment of 3.000 discount points. For a $726,200 loan, there is a 5.882% APR with a monthly principal and interest payment of $4,010 for 360 months. Interest rate quoted assumes a purchase with 45 day lock pricing at 100% loan-to-value (LTV), a minimum FICO score of 740 on a primary residence. The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender. Not available in all states. Payments shown do not include taxes or insurance, actual payment obligations will be greater. Not all applicants will qualify. Rates and terms are effective 9:00AM PT on 9/18/2024 and are subject to change without notice.

Refinance: By refinancing your existing loan, your total finance charges may be higher over the life of the loan.