DSCR Loans

DSCR Loans for Real Estate Investors

DSCR loans for real estate investors allow you to qualify using rental income instead of personal income. Rather than relying on W-2s, tax returns, or traditional debt-to-income ratios, DSCR loans focus on whether the property’s cash flow can support the monthly mortgage payment.

These loans are ideal for investors purchasing or refinancing long-term rentals, short-term rentals (Airbnb/VRBO), and LLC-owned properties, making them a powerful option for scaling a real estate portfolio.

What Are DSCR Loans for Real Estate Investors?

A DSCR loan (Debt Service Coverage Ratio loan) is an investor mortgage that typically qualifies based on the property’s rental income and cash flow rather than your personal income. Instead of focusing on W-2s, tax returns, and DTI, DSCR programs often focus on whether the rent supports the monthly housing payment.

Why investors like DSCR financing:

Qualify using property cash flow (rent vs. payment)
No personal tax returns required
Commonly available for LLC/entity vesting
Useful for long-term rentals and short-term rentals (AirBNB, VRBO)

Who DSCR Loans Are Best For

DSCR loans can be a strong fit if you are:

Buying a rental property and want a cash-flow-first approval approach
Self-employed and want fewer income documentation hurdles
Building a portfolio and don’t want DTI to become the limiting factor
Refinancing to reduce payment, restructure debt, or pull cash out

How DSCR Works

DSCR is generally calculated as:

Qualifying Rent ÷ Monthly Housing Payment (PITI + HOA)

Example

Market rent: $2,500/mo
Monthly payment (PITI + HOA): $2,300/mo
DSCR: 2,500 ÷ 2,300 = 1.09

What does 1.00 DSCR mean?
A DSCR of 1.00 means the property’s qualifying rent roughly covers the monthly housing payment. Higher DSCR often improves approval and pricing.

Get a DSCR Quote (Fast)

Tell us about the type of property and your plan. We’ll respond with DSCR options tailored to your scenario.

Call/Text: (720) 874.9000
Email: Dennie@EliteLendingLtd.com

Tip: For the quickest quote, include the property address and city, estimated monthly rent, purchase price/loan amount, and your best guess on credit score range.

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(720) 874-9000