What is a DSCR loan?
A DSCR loan qualifies you based on the property's ability to cover its own debt — not your personal income. The lender divides the monthly rental income by the monthly mortgage payment. If the property generates enough rent to cover the loan, you qualify.
This makes DSCR ideal for self-employed investors, those with complex tax returns, LLCs, and anyone who prefers to keep their personal finances separate from their portfolio.
Key features
- No personal income documentation required
- No tax returns, no W-2s, no employment verification
- Qualify through an LLC or entity
- Short-term rental income accepted (Airbnb, VRBO)
- Cash-out refinance available
- Interest-only options available
- No limit on financed properties
- Close in 2–3 weeks in most cases
Program parameters
Terms subject to credit approval and lender guidelines. DSCR calculation based on gross rental income vs. PITIA.
How DSCR is calculated
DSCR = Monthly Gross Rental Income ÷ Monthly PITIA (principal, interest, taxes, insurance, association dues)
Example: A property renting for $3,000/month with a $2,400 PITIA has a DSCR of 1.25 — well within qualifying range for most lenders.