Finance rental purchases, refinances, cash-out refinances, and portfolios using the property's cash flow — instead of traditional, tax-return-heavy underwriting.
A DSCR (Debt Service Coverage Ratio) loan is a business-purpose loan for income-producing investment property. Instead of qualifying you on personal income and tax returns, the lender looks at whether the property's rental income covers its debt payments. If the rent supports the loan, the deal can work — even if your tax returns are complex or show low income.
Single-family residences (SFR), 2–4 unit residential, small multifamily, and select mixed-use — all non-owner-occupied and held for investment.
Illustrative scenario for education — not an actual client, quote, or commitment to lend.
A self-employed investor owns three rentals and wants to buy a fourth — a $320,000 single-family rental that leases for $2,650/month. Their tax returns show heavy write-offs, so a conventional lender counts them as "low income" and declines the file.
The deal cash-flows fine, but traditional underwriting won't look past the tax returns. The investor needs financing that judges the property, not their personal W-2.
A DSCR loan qualifies on whether the rent covers the payment. With rent comfortably above the property's debt service, the coverage ratio works — no tax returns required — and the loan closes in the investor's LLC.
The investor closes the purchase, adds a fourth cash-flowing door to the portfolio, and keeps their capital free for the next deal — all without a single tax return.
General ranges — actual terms depend on the property, DSCR, borrower profile, market, and final underwriting.
| Item | General Range |
|---|---|
| Loan size | Program-dependent; typically mid-six-figures to several million |
| Leverage | Investor-friendly LTVs, subject to DSCR, credit, and property type |
| Credit | Flexible; stronger profiles unlock better leverage and pricing |
| Term | Long-term options, including 30-year and ARM structures |
| Docs | No tax returns required on many DSCR programs |
| Closing | Often achievable in a matter of weeks, subject to title & appraisal |
Pricing, leverage, fees, reserves, and closing timelines vary by program, borrower profile, collateral, market, property type, documentation, title, appraisal, and final underwriting. Any examples are for discussion only and are not a commitment to lend.
Yes — most DSCR programs qualify on the property's rental income, so tax returns are typically not required.
Often, yes. Terms depend on the deal, the property's cash flow, and your credit profile.
Yes — DSCR cash-out refinances are a common way to pull equity for your next acquisition, subject to LTV and underwriting.
Programs vary. Higher coverage (rent well above the payment) generally unlocks better leverage; some programs consider low- or no-ratio scenarios.
Yes — DSCR loans are business-purpose and commonly close in an entity such as an LLC.
Some programs consider short-term rental income. Send us the scenario and we'll tell you what's possible.
Send us the property and the rent — we'll tell you quickly whether a DSCR loan fits and what the next steps are.
Get DSCR Terms Call (800) 555-0142