DSCR Investor Loans
Let the rent qualify the loan.
A DSCR loan qualifies an investment property on the rent it brings in, not on your personal income. No tax returns, no pay stubs and no employment verification.
- No personal income documents
- Close in an LLC or your own name
- Long-term and short-term rentals
No credit pull and no obligation. Prefer to talk? Call or text (949) 910-3943.
At a glance
- Qualifies on
- Property rent vs. payment
- Down payment
- Typically 20% to 25%
- Property use
- Investment only
- Property types
- 1 to 4 units, condos, many short-term rentals
Why DSCR
Financing that grows with your portfolio
Conventional loans get harder with every property you add. DSCR loans look at each deal on its own.
No income documents
No tax returns, W-2s or pay stubs. The property’s rent does the qualifying.
Keep adding properties
Most DSCR lenders have no set cap on how many financed properties you own.
Buy in an LLC
Title can be held in an LLC or other entity, which many investors prefer.
Short-term rentals
Many lenders accept vacation and short-term rentals, using market rent or rental history.
Cash out to buy the next one
Pull equity out of a rental you already own and use it as the down payment on another.
A simpler file
With no personal income to document, there is less paperwork to gather.
Compare
DSCR vs. a conventional investment loan
How the two compare for a rental property.
| DSCR loan | Conventional investment loan | |
|---|---|---|
| Qualifies on | The property’s rent | Your personal income and debts |
| Income documents | None for personal income | Tax returns, W-2s and pay stubs |
| Number of properties | No set cap with most lenders | Up to 10 financed properties |
| Title | LLC or personal name | Personal name |
| Interest rate | Usually higher | Usually lower |
If your personal income supports a conventional loan, it usually costs less. I will check both.
Want to see the payment on a property you are looking at?
The math
How DSCR is calculated
DSCR stands for debt service coverage ratio: the monthly rent divided by the monthly payment. A ratio of 1.0 means the rent covers the payment. Many lenders look for 1.0 to 1.25, and some allow less with a larger down payment.
| Example | Amount |
|---|---|
| Monthly rent | $4,000 |
| Monthly payment, including taxes, insurance and HOA | $3,200 |
| DSCR, rent divided by payment | 1.25 |
Rent is documented with a lease or with the appraiser’s market rent estimate.
Qualifying
Do you qualify?
Typical requirements
- The property is an investment, not your own residence
- Down payment typically 20% to 25%
- Credit score usually 660 or higher
- Rent that covers the payment, shown by a lease or a market rent estimate
- Cash reserves, often about six months of payments
What you will need
- The lease, or I order a rent estimate with the appraisal
- Statements showing your down payment and reserves
- LLC documents if you are buying in an entity
- An insurance quote for the property
- A government-issued photo ID
The process
From first call to closing
Tell me about the deal
The address or price range, expected rent and how much you plan to put down.
Numbers and pre-approval
I run the DSCR, show you rate and down payment options and issue a pre-approval.
Go under contract
Make your offer. I order the appraisal with a rent estimate.
Underwriting to closing
A lighter file means fewer conditions. I keep you updated at every step.
Common questions
DSCR loan questions, answered
Can first-time investors get a DSCR loan?
Sometimes. Some lenders require prior landlord experience, while others allow first-time investors, often with a larger down payment.
Are there prepayment penalties?
Many DSCR loans carry a prepayment penalty for the first few years. I will show you options with and without one so you can choose.
Can I use it for a short-term rental?
Often, yes. Lenders use the property’s rental history or a market rent estimate. Local short-term rental rules still apply.
Can I live in the property?
No. DSCR loans are for investment properties only.
Can I take cash out of a rental I already own?
Yes. A DSCR cash-out refinance lets you pull equity without documenting personal income.
Have a property in mind?
Send me the numbers and I will tell you whether it qualifies, what the payment looks like and how much you would need to bring in.
DSCR loans are business-purpose loans for investment properties and are not available for a home you live in. Rates, terms and requirements vary by lender. This is general information, not a loan offer, rate quote or commitment to lend. Program terms, fees and eligibility can change and depend on your credit, income, property and lender guidelines. Mack Davidson, NMLS #1006831, CA DRE #02086053, E Mortgage Capital, Inc., NMLS #1416824. Equal Housing Opportunity.