DSCR Investor Loans
Qualify an investment property on its own rental income, not your personal income, tax returns, or W-2s.
A DSCR loan (short for Debt-Service-Coverage-Ratio) is built for real estate investors. Rather than underwrite your personal income, the lender looks at whether the property's rent covers its mortgage payment.
That makes it a common tool for investors who are self-employed, who write off a lot on their taxes, or who just want to keep buying without their personal debt-to-income getting in the way.
How the DSCR ratio works
The debt-service-coverage ratio compares the property's rental income to its total monthly payment: principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.0 means the rent exactly covers the payment. Above 1.0 means it more than covers it. Each lender sets the minimum DSCR they'll underwrite to.
Because qualifying rides on the property rather than your paystubs, DSCR loans usually skip tax returns and employment verification.
What to expect
DSCR loans are for investment properties, not the home you live in. In exchange for the lighter income paperwork, they typically ask for a larger down payment and carry a somewhat higher rate than an owner-occupied loan. For a lot of investors, that's a fair trade for speed and the room to keep scaling.
A strong fit if…
- You're buying or refinancing an investment property
- You're self-employed or write off significant income on taxes
- You want to qualify without tax returns or W-2s
- You're growing a rental portfolio and want repeatable financing
Worth weighing
- For investment properties only, not the home you live in
- Usually a larger down payment and a higher rate than owner-occupied loans
- The deal has to pencil: the rent needs to support the payment
Run your numbers
Compare other options
Is DSCR the right fit for you?
Gene will look at your goals and compare your options with no obligation. Get pre-qualified or call to talk it through.