DSCR Loans — Qualify Based on Property
Cash Flow
Finance your investment property using rental income and property performance, not personal income documents.
DSCR loans are designed for real estate investors purchasing or refinancing income-producing properties.
Qualify Using Rental Income
Approval is based on property cash flow, not personal income.
No Traditional Income Documents
W-2s, pay stubs, or tax returns are typically not required.
Investor-Focused Programs
Built specifically for growing and leveraging rental portfolios.
Multiple Property Types
Single-family, condos, townhomes, and 2-4 unit multifamily properties.
DSCR Cash Flow Metrics Received!
Mitchell Dunn is running your property cash flow and valuation metrics across 240+ wholesale lender programs. Expect a call shortly with exact LTV limits, DSCR ratios, and rate options!
Understanding DSCR
Loans
What Is a DSCR Loan?
A DSCR (Debt Service Coverage Ratio) loan is a non-QM mortgage for real estate investors.
Instead of reviewing personal income, lenders evaluate whether the rental income from the property can reasonably cover the mortgage payment.
DSCR compares: Monthly rental income ÷ total monthly housing payment.
DSCR Loan Eligibility
Check if your property may qualify for a DSCR loan. A quick review helps verify lender fit and structure — no obligation.
Investment Property Only
Not for primary residences.
Rental Income Required
Property must demonstrate sufficient cash flow.
DSCR Ratio
Typically ~0.75–1.0+, depending on lender guidelines.
Credit Profile
Minimum scores often start around 620–660, depending on program.
Ownership Structure
Individual, LLC, or trust (program dependent).
Not Sure If You Qualify?
Many investors assume they won't qualify — but DSCR programs are often more flexible than expected.
How DSCR Loans Work
Step 1 – Get Started
Submit your info for a quick DSCR review.
Step 2 – Property Cash Flow Review
We evaluate rental income and lender guidelines.
Step 3 – Compare DSCR Options
Review DSCR loan structures that may fit your strategy.
Step 4 – Move Forward If Ready
Proceed with a lender option that aligns with your goals.
Why Investors Work With Loan Factory
Loan Factory helps investors compare DSCR loan options across multiple lenders, rather than pushing a single program.
Frequently Asked Questions
Everything you need to know about qualifying for DSCR investor loans.
Q. What is a DSCR loan and how does qualification work?
A DSCR (Debt Service Coverage Ratio) loan is a non-QM mortgage designed for real estate investors. Qualification is based on the property's gross rental income compared to its monthly debt obligation (PITIA), rather than personal tax returns, W-2s, or pay stubs.
Q. What DSCR ratio is required to get approved?
Most lenders look for a DSCR ratio of 1.0 or higher, meaning the rental income covers 100% or more of the monthly mortgage payment. However, programs are available for DSCR ratios down to 0.75x or even no-ratio options depending on your credit score and down payment strength.
Q. Do I need to provide personal tax returns or income proof?
No. Traditional income documentation such as tax returns, W-2s, and personal debt-to-income (DTI) calculations are not required. Approval focuses on the cash flow performance of the subject property.
Q. Can I close a DSCR loan in an LLC or business entity?
Yes, closing in an LLC, S-Corp, or partnership entity is allowed and recommended for DSCR financing to help real estate investors protect personal assets and scale rental portfolios.
Q. Can DSCR loans be used for short-term rentals (Airbnb / VRBO)?
Yes. Many DSCR programs accept short-term rental projections from tools like AirDNA or historical 12-month booking statements to establish rental coverage for vacation rental properties.
Q. What property types are eligible for DSCR financing?
DSCR loans cover single-family residential properties, 2–4 unit multi-family homes, warrantable and non-warrantable condos, townhomes, and commercial 5+ unit properties through specialized wholesale channels.
See which DSCR programs may fit your property's cash flow.
A quick review shows which DSCR programs may work for your property's cash flow — no tax returns, no obligation.