The rent
Either the lease in place or a market-rent estimate from the appraiser. For short-term rentals, some lenders will use documented platform history instead.
Let the property qualify instead of you.
A DSCR loan is underwritten on whether the rent covers the payment — not on your W-2, your tax returns, or your debt-to-income ratio. For investors building a portfolio, it is often the difference between stopping at four properties and continuing.
Who this is for.
DSCR stands for debt-service-coverage ratio: the property’s rent measured against its full monthly payment, including principal, interest, taxes, insurance, and any HOA dues. When the rent covers the payment, the property supports the loan on its own.
That matters because conventional investment financing counts every property against your personal debt-to-income ratio. Add enough doors and your own ratio stops you — not because the properties are unprofitable, but because of how the math is done. DSCR sidesteps that entirely.
- Investors scaling past the limits conventional financing imposes
- Borrowers with strong properties but complicated tax returns
- Long-term rentals and, with many lenders, short-term rentals
- Purchases, rate-and-term refinances, and cash-out
- Investors who want to hold title in an LLC
The key number
Lenders compare the monthly rent to the full monthly payment. A ratio at or above 1.0 means the property pays for itself, and generally unlocks the best pricing. Below 1.0 is not automatically a no — it depends on the lender and how much equity is in the deal.
What we look at.
A DSCR file is simpler than a conventional one, but it is still fully underwritten. Three things carry most of the weight.
The payment
Principal, interest, taxes, insurance, and HOA. Every one of those affects the ratio, which is why a high tax bill or steep HOA can matter more than the rate.
The equity
How much of the value the loan represents. More equity gives the lender room and generally improves pricing, and it can offset a ratio that lands under 1.0.
DSCR or conventional investment financing?
If your tax returns comfortably support the loan and you are not near any property-count limits, conventional financing will usually price better and is worth doing instead. DSCR earns its cost when personal income is hard to document, when your debt-to-income ratio has run out of room, or when you want the property held in an entity. It is also frequently the cleaner answer alongside a bank statement loan if you are self-employed — we will compare both against a conventional file and show you the real difference.
What we will ask you for
What we will ask you for
- Property address, and the purchase contract if you are buying
- Current lease, or your rent estimate for a vacant unit
- Recent operating figures: taxes, insurance, and HOA dues
- Photo ID for every borrower
- LLC operating agreement and filing, if you are vesting in an entity
- For a refinance: current mortgage statement and insurance declaration
Common questions.
Do you look at my personal income at all?
Not to calculate qualifying income. There is no debt-to-income ratio on a DSCR loan and no tax returns or pay stubs for income purposes. Credit is still reviewed, and most lenders want to see reserves, but your salary or business income is not what the approval turns on.
Can I close in an LLC?
Yes, and most DSCR lenders prefer it. Vesting in an entity is one of the practical advantages of this program over conventional investment financing. We will need the operating agreement and filing documents for the entity.
Does a short-term rental count?
Often, yes. Lenders vary considerably here — some will use documented booking history from a platform, some use a market short-term rent estimate, and some will only underwrite it as a long-term rental. If the property is or will be a short-term rental, tell us early, because it materially narrows which lenders fit.
How many properties can I finance this way?
DSCR programs generally do not impose the property-count limits that constrain conventional investment financing, which is the main reason investors move to them. Individual lenders may cap total exposure to one borrower. If you are building a portfolio, tell us the whole plan and we will structure around it rather than one deal at a time.
What if the rent does not quite cover the payment?
It is still worth asking. Some lenders will go below a 1.0 ratio with additional equity or reserves, and sometimes a change to the structure — a different term, more money down, or a different lender entirely — moves the ratio enough. That is the part we are actually useful for.
Send us the property and the rent.
Give us the address, the lease or expected rent, and the taxes and insurance. We will run the ratio and tell you where it lands before you formally apply.