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DSCR loan

Qualify on the property's rental income, not your personal income. DSCR stands for debt-service coverage ratio.

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Photo: Adobe Stock (free collection) · Adobe Stock standard license · asset 551589356 · licensed 2026-09-06 under the Chris Does Photos account

Who it's for

Investors who own several properties or whose tax returns understate their income.

How it works

  1. The property's expected rent is compared to its proposed payment. If rent covers the payment, the loan can qualify without your tax returns.
  2. Rates and down payments are higher than conventional investor loans.

What you'll need

  • Appraisal with a rent schedule
  • Reserves
  • Entity documents if buying in an LLC
From our loan officers

When people hear DSCR, they think they need investor experience and/or a ratio over 1.0. That's the most common misunderstanding I correct.

I specialize in DSCR loans, and I wrote an informational guide for agents and investors called The Investor's Guide to DSCR Loans, published and for sale on Amazon.

— John Murphy, Business Development Manager · NMLS 236868

Common questions

Can I close in an LLC?

Often yes; it's one of the reasons investors choose DSCR.

By design this page shows no rates, APRs, payments, or down-payment percentages. Those figures are only published with the full disclosure block required by Regulation Z.