Qualify off the property, not your paycheck.
DSCR loans look at whether the property's rental income covers the mortgage — not your personal income, employment history, or tax returns. Built for investors who think in cash flow.
Understanding DSCR loans, before you apply.
Six things worth knowing up front — no fine print you have to dig for.
What DSCR Actually Means
Debt Service Coverage Ratio — a simple formula: the property's monthly rental income divided by its monthly mortgage payment. Above 1.0 generally means the property pays for itself.
No Personal Income Verification
This is a collateral-based, business-purpose loan — qualification is based on the property's cash flow, not your personal income, employment, or tax returns.
Can Close in Your LLC's Name
The loan can close under your LLC instead of your personal name (not currently allowed in California or Vermont). You personally guarantee it, but payments generally don't show up on your personal credit report.
Flexible Credit Requirements
Credit requirements are generally more flexible than a standard owner-occupied loan, with options available for FICO scores as low as 600 depending on the specific program.
Below-1.0 DSCR Options Exist
You don't necessarily need the rent to fully cover the payment to qualify — some programs allow for ratios below 1.0, though terms and requirements shift accordingly.
Built for More Than Just Long-Term Rentals
DSCR programs commonly support long-term, short-term, and vacation rentals — not just the traditional 12-month lease.
Program highlights and LLC structure rules.
Program Highlights
- Loan amounts up to $3 million
- Up to 85% LTV on purchase and rate/term refinances; cash-out up to 80%
- Cash-out up to $1 million — unlimited under 60% LTV
- 30-year fixed and ARM options available
- Interest-only options available
- Gift funds allowed
- Up to 6% seller concessions
- First-time homebuyers and first-time investors both allowed
- Foreign nationals eligible (up to 70% LTV purchase/rate-term, 60% cash-out; 6 months reserves)
- 1031 exchanges allowed
- Wide property eligibility: SFR, PUD, townhomes, 2–4 units, condos, non-warrantable condos, condotels, manufactured homes, and rural properties
LLC Structure Rules
- Borrower: your LLC (no layered LLCs)
- Guarantor: at least one owner with 25%+ ownership
- Maximum 4 guarantors
- Maximum 8 LLC members
- Property type: 1–4 unit rentals (over 4 units case-by-case)
- LLC closings not currently available in California or Vermont
Check Your DSCR Ratio
Enter the property's expected monthly rent and its estimated total monthly payment. This shows your DSCR and roughly where that ratio tends to land you.
Your DSCR
This is a simplified estimate for planning purposes, not a qualification decision. I'll confirm your actual numbers and which program fits based on your specific property and credit profile.
DSCR Loan Myths vs. Facts
Common misconceptions about DSCR loans, corrected one at a time.
Myth: DSCR loans require verifying your personal income like a W-2 job
Like any mortgage, you'll need to prove your personal income, employment, and tax returns to qualify.
DSCR loans qualify based on the property's rental income relative to its payment — not your personal income, employment history, or tax returns. That's the whole point of the program.
Myth: You need a DSCR of 1.0 or higher to qualify
If the rent doesn't fully cover the mortgage payment, the property won't qualify at all.
Some programs allow for DSCR ratios below 1.0 — it just means terms, down payment, or rate may shift accordingly. It's worth running your actual numbers rather than assuming you're out of range.
Frequently asked, honestly answered.
What credit score do I need?
Does this loan show up on my personal credit report?
Can I use this for a short-term or vacation rental?
What property types qualify?
Can I use this loan for a 1031 exchange?
Let's run your numbers.
No pressure, no jargon — just a real conversation about your options.