DSCR LOANS — QUALIFY ON RENT,
NOT YOUR DTI.
If the deal cash-flows, you're in.
Conventional lenders cap you at 10 properties and choke on your DTI. DSCR loans don't care about your personal income — they qualify the deal. If the rent covers the note, you're in. LLC vesting allowed. No cap on how big you build.
THE PROPERTY qualifies itself.
A conventional investment loan pulls your tax returns, computes your DTI including this new mortgage payment, and either approves or denies based on your personal income. By property #4 or #5, you usually hit the wall — even if every deal cash-flows.
A DSCR loan flips it. The lender looks at the property's rent (market rent on a 1007 appraisal, or actual leases) and compares it to the new PITIA payment. Rent ÷ payment = your DSCR. Above 1.0 means the property covers itself. Above 1.25 typically prices better.
No tax returns. No DTI. No artificial 10-property cap. Just the deal.
DOES THIS PROPERTY cash-flow?
Drop in the rent, the property value, and the financing. We compute DSCR live, color-coded to your real-world threshold.
Run your deal.
Debt-Service Coverage Ratio = monthly rent ÷ total monthly debt service (PITI + HOA).
- StatusThis property cash-flows.
- Monthly P&I$1,835
- Total monthly debt service$2,310
- Monthly rent$2,500
DSCR requirements vary lender-to-lender. Most want 1.0+. Some go to 0.75 with higher down payment + reserves. Sub-1.0 ratios are doable with the right lender - I shop all of them.
HOW A DSCR DEAL CLOSES.
Run the DSCR.
Send me the address and expected rent. I'll model it against current rates before you write the offer.
Lender match.
Different DSCR shops have different appetites — STR, LLC, low DSCR, no-prepay. I pick the right one.
Close in 21.
21-day average from contract to clear-to-close. Vest in your LLC at closing.
DSCR, ANSWERED.
Debt-Service-Coverage-Ratio loan. The lender qualifies the property — does the rent cover the note? — instead of qualifying you on tax returns and DTI. Built for real estate investors.
Most lenders want 1.0 or higher (rent covers the payment). Some go down to 0.75 with stronger credit and a bigger down payment. Above 1.25 typically unlocks better pricing.
No. Unlike conventional, which caps you at 10 financed properties, DSCR has no portfolio limit. Scale as far as the deals work.
Yes — most DSCR lenders prefer or require LLC vesting. Great for asset protection and clean entity-level accounting.
Typically 620+ credit (some lenders start at 660). Down payments run 20-25% for purchase, with 75-80% max LTV.
Often yes — step-down structures like 5-4-3-2-1 are common. Some lenders offer no-prepay options at a slightly higher rate. I tell you straight which lenders charge them and the buy-down cost.
Yes, many lenders qualify on AirDNA or Mashvisor short-term rent projections. Programs vary; I pick the lender whose STR rules fit your market.
Let's talk.
Fifteen minutes.
Bring me your file - even if three other brokers said no. We'll run the numbers, structure it right, and figure out the path. No pressure, no script.
Book a 15-min call
I'll review your situation and tell you straight what's possible. Same-day slots usually open.
Pick a timeApply online
Full secure application in ~12 minutes and document submission, if turned in before 12pm. I'll have a pre-approval letter in your inbox tomorrow morning.
Start applicationJon Taw · Mortgage Broker & Advisor
NMLS #2607503 · Last updated May 2026