Purchase
Buy the rental
Up to 85% LTV30-yr options
Qualify on the lease or the market rent instead of your personal income.
- Lower of lease or market rent
- Close in an LLC from day one
- Short-term rentals accepted
Home/DSCR Rental Loans
DSCR Rental Loans
Qualify on the rent, not your tax returns.
Long-term rental financing from $100,000 to $3M that qualifies on the property's rent against its payment. No tax returns, W-2s or debt-to-income. Buy the rental, refinance the rate, or pull cash out, and close in your LLC.
$100K–$3MLoan size
85% LTVMax on purchase
1.00xMinimum DSCR
30-yrFixed options
Three Ways To Use It
Purchase, rate & term, or cash-out
Pick the path that fits. Each one qualifies on the property's cash flow.
Rate & Term Refinance
Better rate or a longer term
Up to 75% LTVFixed or ARM
Pay off a hard money or bank loan and lock in long-term debt on the rental.
- The standard exit from our bridge
- 30-year fixed, 5/6 and 7/6 ARM
- Interest-only options
Cash-Out Refinance
Pull equity out
Up to 75% LTVBusiness purpose
Turn the equity in a rental into cash for the next acquisition or renovation.
- Use the cash for anything business
- No tax returns or W-2s
- Seasoning varies by program
Key Terms
The DSCR program at a glance
- Loan amount
- $100,000 – $3,000,000
- Max loan-to-value
- 85% purchase · 75% rate & term · 75% cash-out
- Minimum DSCR
- 1.00x on most programs. No-ratio options are available below 1.00x at lower leverage.
- Credit
- 660+ on most programs. A no-minimum-FICO option goes up to 55% LTV and qualifies on equity.
- Terms
- 30-year fixed, 5/6 and 7/6 ARMs, and interest-only options
- Prepayment
- Your choice: 5-4-3-2-1, 3-2-1, or no prepay at a slightly higher rate
- Property types
- Single-family, 2–4 unit, condo, townhome, short-term rental and 5–10 unit
- Short-term rentals
- Airbnb and VRBO accepted, using 12 months of booking history or a market STR analysis
- Income documentation
- None. No tax returns, W-2s, pay stubs or debt-to-income ratio
- Reserves
- Bank statements showing a few months of payments
- Vesting
- Individual, LLC or corporation, usually with a personal guarantee from the members
- Borrowers
- U.S. citizens, permanent residents and foreign nationals
- Typical closing
- 21 to 30 days
Rates, terms and programs are representative and subject to change and to borrower qualification. Business-purpose loans only. This is not a commitment to lend.
How DSCR Works
One number decides the file
DSCR = monthly rent ÷ monthly payment
The payment includes principal, interest, taxes, insurance and HOA. At 1.25x, rent is 25% higher than the payment. At 1.00x, rent covers it exactly. An interest-only payment raises your ratio.
Flip it, then hold it
Buy and renovate with our hard money loan, lease it up, then refinance into DSCR to pay off the bridge and keep the property for the long term. We plan the takeout before the bridge funds, so there are no surprises at the refinance.
Is It A Fit?
Who DSCR is built for
Good fit
- Investors buying or holding rental property
- Self-employed borrowers with heavy write-offs
- Short-term rental owners with booking history
- Borrowers closing in an LLC or corporation
- Flippers refinancing out of a hard money loan
Not a fit
- Owner-occupied primary residences
- Personal, family or household use
- Properties that cannot be rented
- Borrowers who need a W-2 conventional loan
DSCR Questions
Frequently asked questions
What is DSCR?
Debt service coverage ratio: the property's monthly rent divided by its full monthly payment, including principal, interest, taxes, insurance and HOA. A 1.25 DSCR means rent is 25% higher than the payment.
What if my DSCR is below 1.00?
No-ratio options exist with no minimum DSCR, usually at lower leverage and a slightly higher rate. Tell us the numbers and we'll show you what works.
Is there a no-minimum-credit-score option?
Yes. Our no-minimum-FICO DSCR option qualifies on equity rather than credit or coverage, up to 55% loan-to-value.
Do you verify my income?
No. There are no tax returns, W-2s or pay stubs. We look at the property's rent, your reserves and, on most programs, your credit.
Can I use short-term rental income?
Yes. We use 12 months of booking history or a market short-term rental analysis from the appraiser.
Can I close in my LLC?
Yes, from day one, usually with a personal guarantee from the members.
Is there a prepayment penalty?
Usually, but you choose the structure: 5-4-3-2-1, 3-2-1, or no prepay at a slightly higher rate.
Ready to lock in the rental?
One page, about three minutes. Terms usually come back the same day.