How It Works
A no income verification loan for investment property is a DSCR loan (Debt Service Coverage Ratio). Instead of proving your personal income, the lender qualifies the deal based on the property’s rental income relative to its carrying costs.
The formula is simple: DSCR = Monthly Rent ÷ PITIA (principal + interest + taxes + insurance + association dues). If the property’s rent covers its debt payments at 1.0x or higher, the loan qualifies — regardless of your W-2, tax returns, or employment status.
This is not a stated income loan. Pre-2008 stated income products let borrowers declare unverified income. DSCR loans ignore personal income entirely and underwrite the property’s cash flow using verified rents (lease, rent roll, or appraiser market rent).
Loan Requirements
| Requirement | Minimum | Standard | Best Pricing |
|---|---|---|---|
| DSCR ratio | 1.0x | 1.10x | 1.25x+ |
| Credit score | 620 | 680–720 | 720+ |
| Down payment | 20% | 20–25% | 20% |
| Rates | 7.25–9.00% (credit & DSCR dependent) | ||
| Personal income docs | Not required — no W-2, no tax returns, no pay stubs | ||
| LLC vesting | Allowed | ||
| Property limit | None | ||
| Loan amounts | $75K – $3M+ | ||
| Loan terms | 30-year fixed, 5/6 ARM, interest-only options | ||
Who Should Use This Loan
- Self-employed investors — Tax returns show low income due to write-offs and depreciation, making conventional qualification difficult or impossible.
- Investors with 4+ financed properties — Conventional lenders cap at 10 properties and DTI becomes unworkable after 4. DSCR has no limit.
- LLC investors — Need to close in an entity for asset protection. Conventional loans require personal name on title.
- Foreign nationals — No US tax returns or W-2. Some DSCR programs accept foreign nationals with larger down payments (25–30%).
- Portfolio builders scaling fast — Buying 3–5 properties per year. Each deal qualifies independently without stacking personal DTI.
DSCR vs Stated Income — Key Differences
| Feature | DSCR Loan (2026) | Stated Income (Pre-2008) |
|---|---|---|
| Personal income verified? | Not required at all | Borrower “stated” income, unverified |
| What qualifies the loan? | Property rental cash flow (DSCR) | Declared personal income |
| Occupancy | Non-owner occupied only | Owner-occupied allowed |
| Still available? | Yes — widely available | Eliminated after Dodd-Frank |
| Risk model | Property cash flow underwriting | Borrower income declaration |
| LLC allowed? | Yes | Rarely |
| Rates (comparable era) | 7.25–9.00% | 6.50–8.50% (2006–2007) |
FAQs
See If Your Property Qualifies
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