The loan that qualifies on
the deal, not you.
DSCR stands for Debt Service Coverage Ratio — a single number that tells a lender whether a rental property's income covers its loan payment. If the rent covers the payment, the property qualifies. Your personal income is largely irrelevant.
This is a fundamental shift from how conventional mortgages work. A conventional lender wants your W2s, two years of tax returns, pay stubs, and a full picture of your personal debt load. A DSCR lender asks one question: does this property pay for itself?
The formula: DSCR = Monthly Rent ÷ Monthly PITIA (principal, interest, taxes, insurance, association dues). A ratio of 1.0 means the rent exactly covers the payment. Above 1.25 is where most lenders are comfortable.
DSCR loans are structured as Business Purpose Loans — meaning the borrower is typically an LLC and the property is a non-owner-occupied investment. This is what removes the need for personal income verification entirely.
DSCR threshold
required
available
Does your rental
pass the test?
Use this to get a quick read on where your deal likely stands before submitting for review. This is illustrative only — actual qualification depends on your full scenario.
PITIA = principal + interest + taxes + insurance + association dues (if applicable). Use your estimated monthly tax and insurance figures if you don't have exact numbers yet.
Who DSCR loans
are built for.
DSCR loans aren't for everyone — but for the right investor, they remove most of the friction that conventional lenders create.
| Investor Type | Conventional Loan | DSCR Loan |
|---|---|---|
| Self-employed / complex income | ✗ Tax returns often work against you | ✓ Property income qualifies, not personal |
| Investor near the 10-loan limit | ✗ Hard cap at 10 (Fannie/Freddie) | ✓ No property count limit |
| LLC borrower | ✗ Usually personal name only | ✓ Entity borrowing standard |
| Investor with strong-cash-flow property | ✗ Still needs personal income check | ✓ Property pays for itself — that's enough |
| Speed-sensitive deal | ✗ 30–60 day close typical | ✓ 14–21 days typical |
Not sure if your deal qualifies? Submit your scenario — property address, purchase price, estimated rent. We'll tell you where it stands within 24 hours.
Submit My Deal →How a DSCR loan
actually works.
The process is leaner than conventional financing — fewer documents, faster decisions, and no personal income deep-dive.
DSCR loans are structured as Business Purpose Loans — the borrower is your entity, not you personally. If you don't have an LLC, it's a straightforward setup in most states and the right move for any serious investor anyway.
Know your purchase price, estimated monthly rent, and rough taxes and insurance. That's the core of a DSCR scenario — everything else builds from there.
Share the deal basics. We review the property, the DSCR math, and the overall structure. Most deals get a preliminary read within 24 hours — experienced investors with complete details often same day.
Operating agreement, articles of organization, and ID for the principal. Lighter than a conventional loan package — no W2s, no tax returns, no employment verification.
DSCR loans typically close in 14–21 days. Many are structured as 30-year fixed loans — you hold the property, collect rent, and the payment structure is long-term stable.
What DSCR Loans Are Not For
DSCR loans are built for rental investors — but they're not the right fit for every scenario:
- Primary residences or second homes — DSCR is for investment properties only. The property must be rented or intended for rental.
- Properties with negative cash flow — If the rent doesn't cover the PITIA (DSCR below 1.0), most standard programs won't work. Sub-1 DSCR programs exist but require higher down payments and come with rate premiums.
- Fix-and-flip projects — DSCR is for stabilized rental properties. If you're buying to renovate and sell, you need a bridge/fix-and-flip loan. If you're buying to renovate and rent (BRRRR), bridge first, then DSCR refi after stabilization.
- Vacant land or ground-up construction — DSCR requires existing rental income or market rent potential. Raw land and new construction require different products.
- Loan amounts under $100K — Most DSCR lenders have a $100K minimum. Lower-value markets (some rural areas, very small markets) may fall below this threshold.
Questions investors
actually ask.
Submit your rental deal.
We'll run the numbers.
Tell us the property, purchase price, and estimated rent. We'll give you a straight answer on where your deal stands — no runaround, no pressure.