DSCR loans.
Long-term rental debt qualified on what the property earns rather than what you report. No tax returns, no W2s, no employment history, for purchase or refinance.
How it works
The property qualifies. You do not.
A DSCR loan compares the property's monthly rent to its total monthly debt service, principal, interest, taxes, insurance and any HOA, and the property either covers that payment or it does not. There is no personal income statement in the calculation: no tax returns, no W2s, no debt-to-income ratio pulled from your own finances.
The ratio itself is the whole underwrite. A DSCR of 1.0 means rent exactly covers the payment. Most files get standard pricing at 1.20 or better; between 1.0 and 1.20 is often still financeable at different terms. Below 1.0 the property is not carrying itself on its own income and the file usually needs a different structure.
This works the same way for a purchase or a refinance. On a purchase, the rent used is a market rent supported by an appraisal or comparable leases. On a refinance, in-place leases can be used if the property is already rented, or market rent if it is not. Either way, credit is reviewed and it affects pricing, but it is not the gate income and employment history would otherwise be.
Because the loan is qualified on the asset, it works cleanly for a self-employed investor, someone with several properties already on their personal returns, or someone using it as the exit refinance out of a BRRRR bridge loan.
What to bring
What this needs from you.
Required
- A lease in place, or a market rent supported by comparables if the property is vacant or newly built.
- A purchase contract, or the property already owned if this is a refinance.
- Basic credit and reserves. No tax returns, no W2s, no debt-to-income calculation.
- An entity in good standing to hold title. This is investment rental property lending, not owner-occupied.
- A payoff statement and current mortgage information, if this is a refinance.
Terms, plainly
The whole box, before you ask.
Most lenders make you get on a call to learn this. Here it is.
| Amount | $75,000 to $1,000,000+ |
|---|---|
| Qualification | Property's rent against its debt service. No tax returns or W2s |
| Rate and points | Set by credit, DSCR and the deal. Your number is in the term sheet. |
| Decision | 24 to 48 hours from a complete submission |
| Time to close | 14 to 21 days, subject to title clearance |
| Prepayment | Terms vary by structure and are stated in the term sheet |
| Property types | Non-owner-occupied residential, 1 to 4 units, and small multifamily |
| Not funded | Owner-occupied homes, primary residences, and any consumer purpose loan |
Questions
Answered without the phone call.
What DSCR do I need to qualify?
1.0 means rent exactly covers the payment. Most standard pricing wants 1.20 or better, and between 1.0 and 1.20 is often still financeable on different terms. Below 1.0 usually needs a different structure.
Do I need tax returns for a DSCR loan?
No. That is the point of the product. Underwriting reads the lease or a market rent appraisal, the property's expenses, your credit, and reserves, not your personal income.
Can I use a DSCR loan to refinance out of a bridge loan?
Yes, and it is a common exit out of a fix and flip or BRRRR bridge, provided the property's rent supports the new payment at the value it appraises for.
What property types qualify?
Non-owner-occupied residential, one to four units, and small multifamily. This is investment property lending only, so a home you plan to live in does not qualify regardless of the numbers.
Is a DSCR loan more expensive than a conventional mortgage?
Pricing depends on credit, the ratio, and the deal, and your number is stated in the term sheet rather than published as a range. What DSCR buys instead of a lower rate is qualification on the property rather than on your personal file.
Guides
Written to go with this program.
DSCR loan or conventional: which one fits the deal
Two ways to hold a rental long term. One underwrites the property, the other underwrites you. The right answer depends on facts you can check today.
BRRRR financing: how the two loans actually fit together
BRRRR needs a bridge loan and a refinance that agree with each other. Here is how the pieces connect, and where the cash gets trapped.
DSCR loan requirements: how the ratio works and what it has to hit
A DSCR loan qualifies the property, not you. Here is how the ratio is calculated, the number it needs to clear, and how to fix a file that misses.
Who uses this
Depending on who you are.
Where
Lending is nationwide.
Lending is nationwide. The states below have their own page because they are where the most deals come from, not because they are the only places money goes. If your property is somewhere else, submit it anyway; the terms do not change with the postmark.
New Jersey, Pennsylvania, New York, Texas, Ohio, Indiana, North Carolina, South Carolina, Virginia, Maryland, Delaware. See all markets.
Submit a deal
Let's price it.
No credit pull, no obligation, and a real answer either way. If it is not a fit I will tell you why, and usually who to call instead.
- Terms in 24 to 48 hours
- Written, not verbal
- One person, start to finish
$75K to $1M+ · 14 to 21 days