Qualify on the
Property's Income, Not Yours
Built for real estate investors who are growing a portfolio — not just buying a home. No W2s. No tax returns. The property does the qualifying.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. Instead of qualifying based on your personal income, the loan qualifies based on whether the rental income from the property covers the mortgage payment. It's one of the most flexible tools available for real estate investors.
How the ratio works: If a property rents for $2,000/month and the mortgage payment is $1,600/month, the DSCR is 1.25 — meaning the property generates 25% more income than it costs. Most lenders want to see a ratio of at least 1.0 to 1.25.
Is This Loan Right for You?
✔ Great fit if…
- You're buying a rental or investment property
- Your personal income is complex, self-employed, or hard to document
- You want to scale a portfolio without being limited by personal DTI
- The property's rental income can cover (or nearly cover) the mortgage
✗ May not be the best fit if…
- You're buying a primary residence
- The rental income is significantly below the mortgage payment
- You're looking for the lowest possible interest rate (DSCR rates run higher)
The Numbers at a Glance
| Qualification basis | Property rental income vs. mortgage payment |
| Typical DSCR minimum | 1.0–1.25 (rental income ≥ mortgage payment) |
| Down payment | Typically 20–25% |
| Credit score | Usually 640–680+ |
| Personal income docs | Not required — no W2s or tax returns |
| Property types | Investment / rental properties only |
What People Get Wrong About DSCR Loans
DSCR loans can use projected market rent — often from an appraisal — rather than requiring documented rental history. This is what makes them great for new investment properties.
First-time investors use DSCR loans regularly. If the deal makes financial sense and the property cash flows, the loan can work — regardless of your investing experience.
DSCR rates do run higher than primary home loans — but for self-employed buyers or those with complex income, the ability to qualify without tax returns often makes it the only workable path.