Long-term financing based on the rental income and stabilized value of the asset. If the property covers its debt, the deal works, whether you have one rental or thirty and whatever your tax returns say about your income.
A DSCR loan is a long-term rental mortgage qualified on the debt service coverage ratio: the property's income divided by its debt payment. If that number clears the threshold, the loan works. Personal income, tax returns, and debt-to-income ratios take a back seat.
This is the structural fix for a problem that stops good investors cold. Write off enough depreciation and legitimate expenses and your tax return makes you look broke to a conventional underwriter, even as your portfolio compounds. DSCR underwriting reads the asset instead.
It also scales. Conventional guidelines start to fight you after a handful of financed properties. Rental loans underwritten property-by-property don't have that ceiling, which is why serious buy-and-hold investors end up here.
Your Schedule E is doing its job. That shouldn't disqualify you from a mortgage.
When agency guidelines cap how many financed properties you can hold, DSCR debt keeps you buying.
The renovation is done, the tenant is in, the value is up. This is the loan that takes out your short-term debt.
| Property types | Non-owner-occupied residential, 1–10 units |
|---|---|
| Qualification | Debt service coverage ratio on the property's rental income |
| Income docs | No tax returns or employment verification required to qualify the deal |
| Loan purpose | Purchase, rate-and-term refinance, or cash-out refinance |
| Vesting | Commonly held in an LLC |
| Pricing | Quoted per deal — ask for current terms |
Program parameters and pricing are set per deal and subject to change. Send us the property and we will put real terms in writing rather than quoting a range that moves.
Address, purchase price or current value, and actual or market rent. That's the core of a DSCR file.
Income against the proposed payment, including taxes, insurance, and any HOA. You see the math.
Written terms with conditions listed. No surprise overlays two weeks in.
Long-term debt in place, cash flow running, and your file ready for the next one.
Every funded borrower gets a seat in the Borrowers Circle: in-person masterminds, monthly AI workshops, the December couples retreat, and the Education Vault — 200+ hours of training, models, and templates. No membership fee, no application, and none of it priced into your rate.
A rental property mortgage qualified on the property's debt service coverage ratio rather than the borrower's personal income. The property's rent, measured against the full debt payment, determines whether the loan works.
No. Qualification rests on the property's income and value. We still verify identity, entity documents, reserves, and title, but your tax returns aren't the deciding factor.
Yes, and most investors do. Holding investment property in an entity is standard practice with this loan type.
There's no conventional-style cap. Each property is underwritten on its own coverage. That's precisely why investors move to DSCR debt as their portfolios grow.
Yes. Cash-out refinancing is one of the most common uses, especially after a renovation has raised both rent and value. The property still has to cover the new payment.
Then the income analysis works differently. We have a separate program for Airbnb and VRBO properties that uses actual short-term rental revenue. See our short-term rental loans.
Quotes come from people who invest for a living, not a call center. If the deal doesn't work, we'll tell you that too.