DSCR Loans: A Smart Financing Option for Real Estate Investors

For real estate investors looking to scale their portfolio, securing financing can be a major hurdle—especially when traditional lenders require extensive income verification. Debt Service Coverage Ratio (DSCR) loans offer a flexible alternative, allowing investors to qualify based on a property’s cash flow rather than personal income. Lenders assess the Debt Service Coverage Ratio, which measures a property’s net operating income (NOI) relative to its debt obligations.

• Competitive Fixed & Adjustable Rates from over 100 DSCR Programs
• As low as 15% down
• Single family, condos, & multiunit
• Terms from 5 to 40 Years
• Interest only repayment available

Benefits of DSCR Loans

• Easier Qualification: DSCR loans focus on rental income instead of tax returns, W-2s, or employment history, making them ideal for self-employed investors.
• Faster Approval Process: With fewer income verification requirements, these loans often close faster than traditional mortgages.
• Portfolio Expansion: Investors can scale their real estate holdings without impacting their personal debt-to-income (DTI) ratio.
• Flexible Terms: Many DSCR loans offer competitive interest rates, higher loan limits, and options for short- or long-term financing.

How to Qualify for a DSCR Loan

To qualify for a DSCR loan, lenders typically look at:

• The property’s DSCR (often requiring a minimum ratio of 1.0 or higher, however negative DSCR can be accepted)
• Rental income projections or lease agreements
• Credit score and down payment (requirements vary by lender)

We’re here to make the DSCR home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our free DSCR Loan Qualifier.

The DSCR Loan Process

Here’s how our home loan process works:

• Complete our simple DSCR Loan Qualifier
• Receive options based on your unique criteria and scenario
• Compare mortgage interest rates and terms
• Choose the offer that best fits your needs