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DSCR Financing
Debt-Service Coverage Ratio financing qualifies you based on whether the property's rental income covers the loan payment — not your personal income or tax returns, making it a popular choice for real estate investors.
A rental property loan judged on whether the property's rent covers its payment, rather than on your personal income.
Apply NowWho it's for
Property investors — especially the self-employed, or anyone whose tax returns understate what they really earn.
How it works
- 1The lender divides the property's rental income by its total payment. That ratio is the DSCR.
- 2A ratio above 1.0 means the rent more than covers the payment.
- 3Because the property qualifies itself, personal tax returns are usually not required.
- 4Terms are long, like a normal mortgage, so it suits holding rather than flipping.
What to watch out for
The ratio is calculated on market rent, not the rent you hope for. A vacancy still leaves the payment due, so keep reserves.
At a glance
- ●Qualification based on the property's rental income
- ●No personal income or tax return verification required
- ●Popular for growing real estate investment portfolios
- ●Available for most residential and small commercial rentals
Common questions
What DSCR do I need?
Most lenders want at least 1.0 and prefer 1.20 or better. Below 1.0 the rent does not cover the payment, and pricing gets much worse.
Really no tax returns?
For the income test, generally yes — that is the point of the product. You will still provide identification, bank details and property documents.