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No Income Verification Required

DSCR Loans: Qualify on Rental Income, Not Your W-2

Finance investment properties based on cash flow. No W-2s, no tax returns, no DTI limits. Close in your LLC and scale unlimited properties.

No credit impact
2-minute application
Close in 14-21 days

Why Choose DSCR Loans?

The investor-friendly loan program designed for portfolio growth.

No Income Docs

No W-2s, tax returns, or pay stubs. Qualify on rental income only.

Close in LLC

Take title in your business entity. Protect personal assets.

Unlimited Properties

No cap on financed properties. Scale your portfolio freely.

Competitive Rates

Starting in the mid-7% range for qualified borrowers.

How DSCR Loans Work

Three simple steps to financing your next investment property.

1

Calculate DSCR

Use our calculator to confirm the property's rent covers the mortgage. DSCR ≥ 1.0 to qualify, ≥ 1.25 for best rates.

2

Get Appraised

Order appraisal to confirm property value and rental income potential. Lender reviews property's cash flow.

3

Close Fast

Typical closing in 14-21 days. Take title in your LLC. Start collecting rent immediately.

DSCR Loan Requirements

Here's what you need to qualify for a DSCR loan.

Minimum Requirements
  • DSCR Ratio: 1.0 minimum (1.25+ for best rates)
  • Down Payment: 20-25% typical
  • Credit Score: 680+ (700+ preferred)
  • Property Type: 1-4 unit residential
Key Advantages
  • No DTI Limits: Your personal debt doesn't matter
  • No Property Cap: Finance unlimited properties
  • LLC Friendly: Close in business entity
  • Cash-Out Refi: Pull equity to buy more

DSCR vs. Conventional Rates

Understand the premium for flexibility and scalability.

FeatureDSCR LoanConventional
Interest RateMid-7% to 9%Low-7% to 8%
Income DocsNone RequiredW-2, Tax Returns
DTI LimitNo Limit43-50% Max
Property CapUnlimited10 Max
LLC ClosingYesNo (personal only)
Typical Closing14-21 days30-45 days

Bottom Line: While DSCR loans typically carry a 0.5-1.5% rate premium over conventional loans, the ability to scale unlimited properties, avoid income verification, and close in an LLC often makes them significantly more valuable for serious real estate investors.

Frequently Asked Questions

What credit score do I need for a DSCR loan?▼
Most lenders require a minimum credit score of 680, though 700+ is preferred for the best rates. Higher credit scores (740+) may unlock lower rates and more favorable terms.
Can I use DSCR loans for short-term rentals (Airbnb)?▼
Yes! Many lenders accept short-term rental income for DSCR qualification. You'll typically need to provide rental comps or a market analysis showing expected rental income from the property's location.
How is rental income calculated if the property is vacant?▼
For vacant properties, lenders use the appraiser's opinion of market rent. The appraiser will analyze comparable rental properties in the area to determine fair market rent value, which is used in the DSCR calculation.
Can I get a DSCR loan for my first investment property?▼
Yes, DSCR loans are available for first-time investors. Some lenders may require a higher down payment (30% instead of 20-25%) or stronger DSCR ratio (1.25+ instead of 1.0) for investors with no rental property experience, but it's definitely possible.
Are DSCR loans assumable?▼
Most DSCR loans are not assumable, meaning a buyer can't take over your loan when you sell. However, this varies by lender, so it's worth asking if loan assumability is important to your investment strategy.
Can I refinance a conventional loan into a DSCR loan?▼
Absolutely! DSCR cash-out refinances are very popular. You can pull equity from an existing rental property to fund additional investments, all without providing income documentation. This is a common strategy for scaling a rental portfolio.

Ready to Scale Your Portfolio?

Get pre-qualified for a DSCR loan in minutes. No credit impact, no income docs, no hassle. Start growing your rental empire today.

Join thousands of investors who trust HonestCasa for DSCR financing