Financing Program
DSCR Loans for Rental Properties
DSCR rental loans qualify based on the property's income — not the borrower's personal tax returns. Ideal for investors with multiple properties or complex income structures who need a straightforward path to long-term financing.
Loan Range
$100,000 – $5,000,000
Term Range
30 years (fixed/ARM)
Structure
DSCR-based financing for long-term rental portfolios
What It's Used For
Common Use Cases
Acquire long-term buy-and-hold rental properties
Refinance existing rental portfolio debt
Cash-out equity from stabilized rentals
Transition a completed flip to a long-term rental
Build a scalable portfolio without W-2 income requirements
Program Details
Key Features
Qualification based on debt service coverage ratio (DSCR)
No personal income or tax return verification required
Loan amounts from $100K to $5M+
30-year fixed, ARM, and interest-only options
Single-family, 2–4 unit, and small multi-family eligible
Available for purchase, rate/term refinance, and cash-out
How It Works
How This Financing Is Structured
DSCR loans underwrite the property's rental income rather than the borrower's personal income. The debt service coverage ratio (net operating income divided by total debt service) must typically exceed 1.20x. These are long-term, fully amortizing loans structured like conventional mortgages. Run your numbers in the DSCR calculator to see where your deal falls.
Fit Assessment
Is This the Right Program?
✓ This program IS a good fit when:
- →Investors building long-term rental portfolios
- →Properties with stable, documentable rental income
- →Investors who prefer asset-based underwriting
- →Landlords refinancing existing rental debt
✗ This program is NOT the right fit when:
- ✗Properties that are vacant with no lease in place
- ✗Owner-occupied properties — not investor programs
- ✗Borrowers needing fast close with no documentation
- ✗Properties with below-market or subsidized rents
Common Questions
Frequently Asked Questions
Does my personal income matter for a DSCR loan?
No. DSCR loans qualify the property based on rental income relative to debt service — not your personal W-2 or tax returns. This is particularly useful for self-employed investors or those with complex income structures.
What DSCR ratio do lenders require?
Most lenders require a minimum DSCR of 1.20x, meaning the property earns 20% more than the debt payment. Some portfolio lenders will go to 1.0x with compensating factors.
Can I use a DSCR loan for short-term rentals?
Some lenders accept short-term rental income from platforms like Airbnb, but they typically require a 12-month operating history and apply a haircut to projected income.
Keep Exploring
Related Programs
Lines of Credit & Term Loans
Flexible working capital structured around your cash flow
Learn more →Commercial Real Estate Loans
Acquisition, refinance, and construction for income-producing properties
Learn more →SBA 7(a) & 504 Loans & Rates
Government-backed financing for owner-operated businesses
Learn more →From the Insights Library
Related Reading
Ready to Move Forward
Qualify Your Rental
No cost. No obligation. A direct conversation about whether this program fits your deal.