DSCR loansqualify on rent,not tax returns.
A DSCR loan qualifies a rental property on its own income. If the rent covers the payment, you may qualify without pay stubs, W-2s or tax returns. It is built for investors growing a portfolio, self-employed buyers and anyone whose tax returns understate what they earn. Available nationwide through our commercial lending desk.
Who DSCR works best for.
A strong fit if
- You are buying or refinancing a rental property
- Your tax returns show less income than you actually earn
- You own several properties and are hitting conventional limits
- You want to close in an LLC
- You are investing outside the DMV
Compare options if
- You will live in the property. DSCR is for investment only
- The rent does not cover the payment and you cannot put more down
- You qualify easily for conventional. It usually prices lower
DSCR guidelines in plain numbers.
DSCR loans are non-QM, so each lender sets its own rules. These are typical ranges.
| How it qualifies | Monthly rent divided by the full payment (principal, interest, taxes, insurance and HOA). That ratio is the DSCR. |
|---|---|
| Minimum ratio | 1.0 is a common minimum. 1.25 or higher usually gets the best pricing. Some lenders go below 1.0 with more down. |
| Down payment | Typically 20% to 25%, more for lower credit or lower ratios. |
| Credit score | Typically 660 to 680+. |
| Properties | 1 to 4 unit rentals, condos and townhomes. Some lenders allow short term rentals. |
| Vesting | Most lenders allow closing in an LLC. |
| Reserves and prepayment | Typically several months of reserves. Many DSCR loans carry a prepayment penalty that steps down over 3 to 5 years, which can lower the rate. |
Run your debt service coverage ratio.
Enter the price and the rent. See your ratio, your full payment and your cash flow.
Two ways to finance a rental.
Conventional usually prices lower if your tax returns support it. DSCR wins on flexibility and speed.
Apply once
One secure application, about 10 minutes.
We price both
DSCR and Conventional investor across our lenders, side by side.
You pick with real numbers
Payment, cash to close and total cost, in plain terms.
DSCR or Conventional investor?
| Feature | Conventional investor | DSCR |
|---|---|---|
| Qualifies on | Your personal income and debts | The property's rent |
| Tax returns | Required | Not needed |
| Down payment | 15% or more | Typically 20 to 25% |
| LLC vesting | Not allowed | Usually allowed |
| Pricing | Lower | Higher |
DSCR questions we hear every week.
What is a DSCR loan?
A loan that qualifies a rental property on its income. DSCR stands for debt service coverage ratio: the monthly rent divided by the full monthly payment.
What DSCR do I need?
Many lenders accept 1.0, meaning the rent covers the payment. A ratio of 1.25 or higher usually earns better pricing. Some lenders go below 1.0 with a larger down payment.
Do I need tax returns?
Generally no. DSCR loans qualify on the property, not your personal income, so pay stubs, W-2s and tax returns are usually not required.
Can I close in my LLC?
Most DSCR lenders allow it, usually with a personal guarantee.
Can I use short term rental income?
Some lenders allow it, using market data or your rental history. Ask Dale which lenders fit your property.
Do you lend outside the DMV?
Yes. DSCR and commercial loans are available nationwide.
Compare other options.
Commercial Lending
Multifamily, mixed-use and commercial property financing nationwide.
ExploreConventionalConventional Loans
3% down for first-time buyers, and mortgage insurance that comes off at 20% equity.
ExploreRefinanceRefinance & Cash-Out
Lower your rate, drop FHA insurance, shorten your term or take cash out.
ExploreHigher price pointsJumbo Loans
Financing above the 2026 conforming limit of $1,249,125 in the DMV.
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