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DSCR Loan · Investor

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.

1.0–1.25
Typical minimum DSCR ratio required by most lenders
General lender guidelines — verify with your lender
20–25%
Typical down payment required for investment property
General lender guidelines — verify with your lender
No W2s
Personal income documentation not required — property income qualifies
DSCR loan structure — lender guidelines vary

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 — not personal income or tax returns
Typical DSCR minimum 1.0–1.25 (rental income must equal or exceed mortgage payment) General lender guideline — verify with your specific lender
Down payment Typically 20–25% for investment properties General lender guideline — verify with your specific lender
Credit score Usually 640–680+ depending on lender
Personal income docs Not required — no W2s or tax returns needed
Property types Investment / rental properties only — not available for primary residences

What People Get Wrong About DSCR Loans

Myth
"I need to show years of rental income history."

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.

Myth
"DSCR loans are only for experienced investors."

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.

Myth
"The higher rate makes it not worth it."

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.

Let's Run the Numbers on Your Investment

We can find out quickly whether your deal pencils out as a DSCR loan.

1
We look at the property's expected or current rental income
2
I calculate the DSCR ratio against current loan options
3
You find out quickly if the deal works — and what your options are
Schedule a Clarity Call ← Explore other loan options
Representative DSCR Investment Loan Scenario: Debt Service Coverage Ratio (DSCR) loans are strictly for business and investment purpose transactions. Based on a purchase price of $500,000 with a 20% down payment ($100,000), the base loan amount is $400,000 (80% LTV). At a 30-year fixed interest rate of 7.500% (7.680% APR), the estimated monthly principal and interest (P&I) payment is $2,797. Qualification is based primarily on property cash flow/rental income ratio rather than personal employment income. Payments do not include property taxes, insurance, or HOA fees; actual monthly obligations will be greater. Non-QM program subject to underwriting guidelines and property eligibility.

Edge Home Finance, LLC | Company NMLS #891464 | Kat Fish, Licensed Mortgage Loan Originator, NMLS #2609071 | Licensed in Colorado | www.nmlsconsumeraccess.org | Equal Housing Opportunity.