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DSCR Loan Program

What is DSCR Loan?

A DSCR loan, or Debt Service Coverage Ratio (DSCR) loan, is a mortgage program designed specifically for real estate investors. Instead of qualifying based on personal income, borrowers qualify based on the income generated by the investment property.

Rather than reviewing W-2s, tax returns, or employment history, lenders evaluate whether the property’s rental income is sufficient to cover the proposed mortgage payment. This is measured using the Debt Service Coverage Ratio (DSCR), which compares the property’s gross rental income to its total monthly debt obligation.

Because qualification is based on property performance, DSCR loans are commonly used for investment properties, including single-family rentals and multi-unit properties. Title may be held in an individual name or an LLC, making DSCR loans a flexible option for real estate investors.

Who qualifies for DSCR Loan?

DSCR loans are designed for real estate investors who want to qualify based on the income generated by the property rather than their personal income.

Borrowers may qualify if:

  1. The property’s rental income meets or exceeds the required Debt Service Coverage Ratio (DSCR)
  2. The property is an investment property (not owner-occupied)
  3. The borrower has acceptable credit history (typically 620+ depending on the program)
  4. The property is cash-flowing or near cash-flow neutral
  5. Title is held in an individual name or an LLC

Because personal income is not used, W-2s, tax returns, and employment verification are not required, making DSCR loans ideal for self-employed borrowers and experienced real estate investors.

DSCR Loan Benefits

Advantages

  1. Qualify based on property cash flow, not personal income
  2. No W-2s, tax returns, or income verification required
  3. Ideal for real estate investors and rental properties
  4. Available for single-family, 2–4 unit, and certain multi-unit properties
  5. Faster underwriting with simplified documentation
  6. Allows investors to scale portfolios without traditional income limits

To learn more about DSCR loan options, please call (866) 649-0179 or request a quote today.