DSCR Loans for Real Estate Investors
DSCR loans qualify off your property's rent instead of your personal income, so you can buy, refinance, or pull cash out of rentals without tax returns or pay stubs. As a broker, I shop your scenario across multiple wholesale DSCR lenders and give you an honest answer on what works, with no pressure. Run any scenario by me.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. Instead of looking at your W-2s, tax returns, or debt-to-income ratio, the lender looks at whether the property's rent covers its own payment.
That makes DSCR loans a strong fit for self-employed investors, people whose tax write-offs shrink their income on paper, and anyone growing a portfolio past what conventional loans allow.
A DSCR of 1.00 means the rent exactly covers the payment. Above 1.00 means the property covers itself with room to spare. Some lenders go below 1.00, usually with a larger down payment or stronger credit.
Quick DSCR Calculator
Estimate only, based on a 30-year fixed payment. Example rate is for illustration and is not a quote. Actual qualifying DSCR depends on the lender, appraisal rent, and final terms.
Investors I Work Best With
Portfolio Builders
You own one or more rentals and want to add the next one without your personal income limiting you.
BRRRR & Equity Investors
You've finished a rehab or built equity and want to pull cash out to fund your next deal.
Self-Employed Investors
Your tax returns don't reflect what you actually earn, and you're tired of that working against you.
Newer Investors
You want to know what you actually qualify for before you start making offers. Many lenders work with first-time investors.
Short-Term Rental Owners
Airbnb and vacation rentals are eligible with many lenders, usually with slightly tighter limits.
LLC Owners
Most DSCR lenders let you close in your LLC, keeping your investment properties separate from your personal finances.
What You Can Do With a DSCR Loan
- Purchase a rental property
- Rate/term refinance out of a hard money or bridge loan
- Cash-out refinance to pull equity for your next deal
- 30-year fixed, 40-year, and interest-only options with select lenders
Property Types
- Single-family homes and townhomes
- 2–4 unit properties
- Warrantable and non-warrantable condos
- Short-term and vacation rentals
- Rural properties with select lenders
Manufactured homes, mixed-use, and 5+ unit properties generally aren't eligible for residential DSCR programs.
DSCR vs. Conventional Investment Loans
| DSCR Loan | Conventional Investment Loan | |
|---|---|---|
| Qualifies on | Property's rent | Your personal income and DTI |
| Tax returns | Not required | Usually 2 years |
| Close in an LLC | Yes, with most lenders | Generally no |
| Number of properties | Many lenders allow large portfolios | Capped at 10 financed properties |
| Pricing | Typically higher rates than conventional | Typically lower rates |
| Prepayment penalty | Common, varies by state and lender | None |
If you qualify for conventional financing and it fits your goals, I'll tell you. The right loan is the one that fits your deal.
Investing In and Outside Florida
I'm based in Florida and licensed in Florida and Pennsylvania. For business-purpose investment loans, many states don't require a local license, so I can help investors in a long list of other states too, including popular rental markets like these:
Send me the property address and I'll confirm which lenders work in that state before we go any further. Investing in Florida? See my Florida DSCR loans page.
From Scenario to Closing
Send Your Scenario
Property address, value or price, rent, credit score, and what you want to do.
I Shop the Lenders
I check your deal against multiple DSCR lenders and tell you who fits, who doesn't, and why.
Pick Your Option
Compare rate, costs, and prepayment terms side by side and choose what works for you.
Appraisal & Close
The appraisal confirms value and market rent, and we close in your name or your LLC.
DSCR Loan Questions
What DSCR do I need to qualify?
Many lenders look for a DSCR of 1.00 or higher, meaning the rent covers the full payment. Some programs allow a DSCR below 1.00, or even no minimum, usually with a lower loan-to-value or higher credit score.
Do I need tax returns or pay stubs?
No. DSCR loans qualify off the property's rental income, so personal income documents aren't required. Lenders still review credit, assets for reserves, and the appraisal.
Can I close in my LLC?
Yes. Most DSCR lenders allow closing in an LLC, with the members signing a personal guarantee. Some lenders don't allow layered entities, such as an LLC owned by another LLC or a trust.
Can first-time investors get a DSCR loan?
Many lenders allow first-time investors, sometimes with a higher minimum credit score or DSCR. If you don't currently own your home and haven't owned one recently, options are more limited, so let's check your situation first.
How soon after buying can I do a cash-out refinance?
Most DSCR lenders want around six months of ownership before using the full appraised value on a cash-out. A few have options for recently renovated properties or properties bought with cash. Send me your purchase date and I'll tell you which lenders fit.
Are short-term rentals eligible?
Yes, with many lenders. Short-term rentals often have a slightly lower maximum loan-to-value and a minimum DSCR requirement.
Is there a prepayment penalty?
Prepayment penalties are common on DSCR loans and are typically structured over one to five years. Rules vary by state, and some states don't allow them. Choosing a shorter or no prepayment penalty is often possible but usually affects pricing.
Which states can you help with?
I'm licensed in Florida and Pennsylvania. For business-purpose investment loans, many other states don't require a local license, including Tennessee, Ohio, Indiana, Georgia, and Texas. Send me the property address and I'll confirm which lenders work there.
Run Any Scenario by Me
Honest guidance, no pressure. If your deal works, I'll show you the best options. If it doesn't yet, I'll tell you why and what would need to change.
Brandt Myers, NMLS #2030154 | Mountain Goat Mortgage LLC, NMLS #2547079. Licensed mortgage broker in Florida and Pennsylvania. DSCR loans are business-purpose loans for non-owner-occupied investment properties only. Programs, eligibility, and availability vary by lender and state and are subject to change. This is not a commitment to lend. Information on this page is educational and is not a loan quote.