DSCR loans for rental investors
A DSCR loan is an investor mortgage that qualifies mainly on the property's cash flow. The debt service coverage ratio compares monthly rent with the monthly PITIA payment: rent of $2,900 against PITIA of $2,500 is a DSCR of 1.16.
Who it's for
- Investors buying or refinancing rentals
- Self-employed owners with complex tax returns
- Owners growing a portfolio of 1–4 unit homes
What you'll typically need
- A property that produces (or can produce) market rent
- A down payment or equity, often 20–25% or more
- Reserves set by the program
- An appraisal with a rent schedule
Guidelines vary by lender and change over time. A licensed loan officer confirms what applies to you.
The good
- Personal income documents often not required
- Can close in an LLC
- Scales across several properties
Trade-offs to know
- Rates are usually higher than owner-occupied loans
- Larger down payment
- Prepayment penalties are common
Step by step
- 01Scenario review
- 02Indicative terms
- 03Appraisal and rent schedule
- 04Underwriting
- 05Closing
Other programs
DSCR loansFix-and-flipPortfolio refinanceBank-statement loans
On a real site each program gets its own page like this one.
Talk it through with Riley Navarro
Questions are free. So is a first look at your numbers.
Request indicative terms