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Investor financing

Qualify on the property's income. Not yours.

DSCR loans let real estate investors finance rental property based on the rent it generates — no tax returns, no W-2s, no personal debt-to-income calculation.

Start my application Call (773) 354-3135

What is a DSCR loan?

Built for landlords, not pay stubs

DSCR stands for Debt Service Coverage Ratio — a simple measure of whether a rental property's income covers its mortgage payment. Instead of underwriting you, the loan underwrites the property. If the numbers work, the loan works — even if your personal tax returns show heavy write-offs, you're newly self-employed, or you already hold several mortgages that would max out a conventional debt-to-income ratio.

The DSCR formula

DSCR = Monthly rental income ÷ Monthly mortgage payment (PITIA)

A DSCR of 1.0 means rent exactly covers the payment. Most lenders prefer 1.0–1.25+, though programs exist for properties below 1.0 with a larger down payment.

Who DSCR loans are for

Self-employed investors

Skip the tax-return scrutiny. Business write-offs that hurt conventional DTI don't factor in here.

Growing portfolios

No cap tied to your personal DTI — qualify deal by deal based on each property's own cash flow.

First-time investors

No prior landlord experience required on most programs — a strong lease or market rent estimate can qualify.

Short-term rental owners

Airbnb and VRBO income can often be used, calculated via short-term rental specific underwriting.

Eligible property types

  • Single-family rentals
  • 2–4 unit properties
  • Condos & townhomes
  • Small multifamily (5+ units may shift to commercial — ask Patrick)
  • Short-term / vacation rentals
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Why investors choose DSCR

The trade-offs, honestly

Advantages

  • No personal income or employment verification
  • Close in an LLC for liability protection
  • No limit on number of financed properties
  • Faster, simpler documentation than conventional

Considerations

  • Rates typically run higher than conventional owner-occupied loans
  • Larger down payment generally required
  • Investment property only — not for primary residences
  • Prepayment penalties common on some programs

DSCR loan questions

What investors ask us most

Do I need landlord experience to qualify?
Most DSCR programs don't require prior landlord experience, though terms may be slightly more favorable with a rental history. First-time investors are routinely approved using a signed lease or a market rent estimate from an appraiser.
What counts as the "rental income" in the formula?
For a property already leased, actual lease income is typically used. For a vacant or to-be-purchased property, an appraiser provides a market rent estimate (Form 1007 or similar) that lenders use instead.
Can I use a DSCR loan if my property's DSCR is below 1.0?
Often, yes — some programs allow DSCR ratios below 1.0, typically with a larger down payment or slightly higher rate to offset the added risk. We'll walk through what your specific property qualifies for.
Is a DSCR loan the same as a hard money loan?
No. DSCR loans are long-term financing (typically 30-year terms) for stabilized rental properties. Hard money and fix & flip loans are short-term financing for renovation or quick-turn projects. Many investors use a fix & flip loan to renovate, then refinance into a DSCR loan once it's rented.

Let's run the numbers on your property

Send Patrick the address and the rent (actual or projected) — he'll tell you straight whether DSCR financing works for your deal.

Start my application → Call (773) 354-3135