Get a no-cost quote on DSCR loans with no personal income verification required.
A Debt Service Coverage Ratio (DSCR) loan is an investment property mortgage that qualifies you based on the rental income generated by the property rather than your personal income. This makes DSCR loans ideal for real estate investors who have complex income situations, are self-employed, or want to expand their portfolio without traditional W-2 and tax return verification.
The DSCR is calculated by dividing the property's monthly rental income by its monthly debt obligations including principal, interest, taxes, insurance, and HOA fees. A DSCR of 1.0 means the property's income exactly covers its expenses, while a DSCR above 1.0 indicates positive cash flow. Many lenders accept DSCR ratios from 0.75 to 1.25 or higher, with terms varying based on the ratio.
DSCR loans work for both long-term rentals and short-term vacation rentals including Airbnb and VRBO properties. Many lenders accept projected short-term rental income using market data from platforms like AirDNA to qualify your investment property.
Our DSCR loan specialists understand real estate investment financing and will help you structure loans based on property performance rather than personal income documentation, allowing you to build your portfolio more efficiently.
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Here's how the DSCR loan process works:
1- Calculate your property's DSCR using rental income and projected mortgage payment
2- Submit application with property information and rental documentation or market rent appraisal
3- Property appraisal determines both value and market rent potential
4- Close on your investment property in personal name or entity
For short-term rental properties, lenders may use projected Airbnb or VRBO income based on comparable vacation rental data in your market. Some lenders require 12 months of STR operating history, while others will approve based on market projections for new short-term rental investments.
There's no limit to the number of DSCR loans you can have, making these loans attractive for investors building large rental portfolios. Personal debt-to-income ratios are not considered - qualification is based solely on the property's ability to generate income.
All loans subject to credit approval. Rates, program terms, and conditions are subject to change without notice. Not all products are available in all states or for all dollar amounts. Other restrictions and limitations may apply. This is not a commitment to lend. DSCR loans are non-QM mortgage products. DSCR requirements, down payment, and rates vary based on credit score, property type, and loan amount. Short-term rental income projections subject to lender guidelines and market data verification. Property appraisal required.
