DSCR Loans
DSCR Loans — Qualify on Cash Flow, Not Tax Returns
DSCR (debt-service-coverage-ratio) loans are the workhorse loan for real estate investors who buy and hold rental property. Qualify on what the property earns, not what your tax return shows. No W-2s, no paystubs, no two years of returns. Up to 80% LTV. 30-year terms. Vesting in your LLC. Term sheet in minutes.
Funded for Real Estate Investors
DSCR Rates
Individual Vesting Accepted
Airbnb & Vrbo Properties Welcome
DSCR Loans
What is a DSCR Loan?
A DSCR loan is a real estate investment loan that qualifies a borrower based on the income the property itself produces — not the borrower's personal income. The qualification ratio compares the property's gross monthly rent to the property's monthly debt service (principal, interest, taxes, insurance, and HOA dues). A DSCR of 1.0 means the rent exactly covers the debt; 1.25 means the property produces 25% more income than it owes.
For investors who file complex tax returns, write off paper losses, or hold property in an LLC, DSCR loans solve a structural problem: the property cash-flows beautifully, but the tax return shows a loss. Conventional lenders cannot finance the deal. DSCR lenders can — because the property is the borrower.
DSCR loans are technically classified as Non-QM (Non-Qualified Mortgage) loans because the borrower does not qualify under the standard Qualified Mortgage rules — there is no income documentation, no debt-to-income analysis, no two years of tax returns. Because DSCR loans are also business-purpose loans on non-owner-occupied investment property, the consumer-protection rules that apply to most Non-QM mortgages (TILA, RESPA, Ability-to-Repay) generally do not apply at all. This is why DSCR loans can underwrite faster, with less documentation, than even other Non-QM products. It is also why they are the workhorse loan for real estate investors.
🏠 DSCR Loans Are Non-QM Loans
Every DSCR loan we originate is a business-purpose Non-QM loan on non-owner-occupied investment property. That means no tax returns, no W-2s, no debt-to-income analysis — ever. If you have been searching for a Non-QM lender for rental property, DSCR is almost certainly the program you are looking for.
See all of our Non-QM loan programs →Who DSCR Loans Are Built For
- Self-employed investors whose tax returns understate their actual income
- LLC and LP borrowers who hold rental property in entities for liability or estate-planning reasons
- Investors with multiple properties who have hit the conventional 10-property cap
- Foreign nationals investing in U.S. rental property without U.S. tax history
- STR operators running short-term rentals on Airbnb, Vrbo, or direct booking
- Investors refinancing out of bridge or hard money into long-term, lower-rate financing once the property stabilizes
DSCR Loan Terms
| Loan Amounts | $100,000 to $5,000,000+ |
| Maximum LTV | Up to 80% purchase, 75% cash-out refi |
| Minimum DSCR | No minimum — sub-1.0 programs available |
| Loan Term | 30-yr fixed, 5/6 ARM, 7/6 ARM, 10-yr I/O |
| Rates | From 6.25% |
| Property Types | 1–4 unit, condos, townhomes, STRs |
| Vesting | LLC, LP, corporation, or individual |
| Income Docs | None — qualified on property cash flow |
| Credit Score | From 660 FICO; best pricing at 720+ |
| Pre-Payment | Step-down structures; no-prepay available |
| Reserves | 3–6 months PITIA depending on program |
How to Qualify for a DSCR Loan
1. The property has to cash-flow (or come close)
We calculate DSCR using market rent (supported by an appraiser's 1007 rent schedule or, on STRs, a third-party AirDNA report) divided by the all-in monthly payment including taxes, insurance, and HOA. Most of our DSCR programs require a ratio of 1.0 or higher for best pricing, but we have programs that fund down to a sub-1.0 DSCR with rate adjustments.
2. Credit profile
We look at the middle FICO score of all guarantors. Programs are available starting at 660; pricing improves materially at 700+ and again at 740+. Recent late mortgage payments, bankruptcies, or foreclosures within the last 36 months may require additional underwriting but do not automatically disqualify.
3. Investor experience
First-time investors are eligible. Experienced investors (2+ rental properties owned for 12+ months) qualify for better pricing and higher LTVs.
How the DSCR Loan Process Works
Step 1 — Apply (5 minutes)
Tell us about the property and the deal. No tax returns required — ever. Our application takes about five minutes.
Step 2 — Term sheet (same day)
Our AI underwriting platform analyzes the deal in real time and returns a fundable term sheet with rate, points, LTV, and conditions — usually within hours of application.
Step 3 — Property valuation
We order the appraisal with a 1007 rent schedule. Most appraisals come back within 7–10 business days; some markets faster.
Step 4 — Underwriting & closing
Title, insurance, and entity documentation are reviewed in parallel. Most DSCR loans close in 21–30 days from application — faster on clean files.
DSCR Loan Frequently Asked Questions
What is a DSCR loan?
A DSCR loan is an investment-property loan where the borrower qualifies based on the property's projected cash flow rather than personal income. There are no tax returns, W-2s, or paystubs required.
Are DSCR loans considered Non-QM loans?
Yes. DSCR loans are Non-QM loans because the borrower qualifies on property cash flow rather than personal income documentation, which does not meet Qualified Mortgage standards. DSCR loans are specifically business-purpose Non-QM loans for non-owner-occupied investment property, which is what we specialize in.
What is the minimum DSCR ratio you require?
We have programs with no minimum DSCR (loans on properties that do not yet cash-flow), with rate adjustments. Best pricing is on properties with a DSCR of 1.0 or higher.
Do I need to provide tax returns for a DSCR loan?
No. DSCR loans are built specifically so investors do not need to provide tax returns, W-2s, paystubs, or any personal income documentation.
Can I close a DSCR loan in an LLC?
Yes. We routinely close DSCR loans in LLCs, LPs, and corporations. We also accept individual vesting if you prefer to take title personally.
What is the minimum credit score for a DSCR loan?
Programs are available starting at a 660 middle FICO score. Pricing improves at 700, again at 720, and again at 740.
Are short-term rentals (Airbnb, Vrbo) eligible?
Yes. We use AirDNA or 12 months of operating history to qualify STRs. Some markets and HOAs restrict STR use — we underwrite each market individually.
Can I get a DSCR loan as a foreign national?
Yes. We have a dedicated foreign-national DSCR program for investors without U.S. tax history.
How fast can a DSCR loan close?
Most DSCR loans close in 21–30 days from application. The longest-pole item is typically the appraisal.
RELATED PROGRAMS
Bridge loans for the acquisition and rehab phase, then refinance into a DSCR loan at stabilization
Portfolio loans to consolidate five or more rental properties under a single DSCR-style loan
Hard money loans for asset-based, time-sensitive acquisitions
Ready to Close Your Next Rental Deal?
Get a real DSCR term sheet in five minutes. No tax returns. No income verification. Direct lender, in-house underwriting, in-house funding.
Loan Programs
Bridge Loans (Fix & Flip)
Fast, short-term financing for fix-and-flip projects. Close in 5 days. Up to 100% of rehab costs financed. 4-day draw processing.
Portfolio Loans
Consolidate five or more rental properties into a single loan. One payment, one closing, one set of conditions. Lower rates and origination fees than financing each property separately.
Hard Money / Asset Based
Loan decisions made on the property, not the credit report. Pure asset-based underwriting with rapid close. For time-sensitive acquisitions and complex situations. Rates from 8.5%.
Commercial Real Estate
Multifamily 5+, mixed-use, office, retail, and industrial. Acquisition, refinance, and value-add financing. Bridge-to-perm structures available. Loan amounts from $250,000 to $25,000,000+.