📈 Real Estate Investing
DSCR Loans
Build wealth through real estate with financing designed for investors at every stage.
🔒 Secure · No Obligation
Why This Loan
DSCR Loans
(Debt Service Coverage Ratio Loans)
A DSCR loan is a type of mortgage designed for real estate investors that qualifies the property based on its income potential rather than the borrower’s personal income. Instead of traditional employment or tax return verification, lenders evaluate whether the rental income from the property is enough to cover the mortgage payment.
The key metric is the Debt Service Coverage Ratio (DSCR) — a calculation that compares a property’s monthly rental income to its monthly debt obligations. In many cases, if the property generates equal or greater income than the mortgage payment, borrowers can qualify more easily than with conventional loans.
DSCR loans are commonly used for:
- Rental properties
- Short-term rentals (Airbnb/VRBO)
- Portfolio expansion
They are especially attractive to investors who:
- Write off significant income
- Own multiple properties
- Prefer a streamlined approval process
While DSCR loans typically require a higher down payment and may have slightly higher interest rates than traditional loans, they offer flexibility, speed, and scalability for building a real estate portfolio.
Quick Overview
Best for: Real estate investors, landlords, portfolio builders, first-time investors
Common use: Purchasing rental properties, expanding real estate portfolio
Credit score: 620-680+ depending on lender
Down payment: typically 20-25% for investment properties
Why This Loan
Key Benefits
Build Wealth
Leverage financing to acquire income-producing properties while preserving capital for other opportunities.
Portfolio Growth
Finance multiple properties and grow your portfolio with structured investment property loans.
Rental Income
Use projected rental income in qualification to help meet underwriting requirements.
Refinance Options
Once equity grows, refinance to pull out capital and fund additional investment acquisitions.
Fast Decisions
Investors need speed — our lender network includes specialists who understand investment timelines.
Multiple Structures
Fixed and adjustable rate options available to match your investment holding strategy.
Qualifying
Qualification OverView
General Requirements
Credit score: 620-680+ depending on lender
Down payment: typically 20-25% for investment properties
Rental income is used for qualification in most cases
Reserves: 6+ months often required per investment property
Final qualification is determined by individual lenders. Requirements vary. This is for informational purposes only.
Typical Documentation
Current lease agreements for existing rentals
Bank and asset statements (3 months)
Real estate portfolio schedule if applicable
Documentation requirements vary by lender and loan program. Your matched lender will provide a specific list.
See if this loan fits your scenario
Select “Investment Property” under loan type, answer a few quick questions to get matched with purchase loans specialists.
FAQ
DSCR Loan
Questions
Most conventional investment property loans require 20% down for a single-unit property and 25% for multi-unit (2-4 units). Some portfolio lenders may offer different structures.
Yes, most lenders allow you to use 75% of gross rental income to offset the property’s mortgage payment for qualification purposes. Actual policy varies by lender and program.
Yes, investment property rates are typically 0.5-1% higher than primary residence rates due to the higher perceived risk. Strong credit and larger down payments can help minimize the premium.
Conventional Fannie Mae guidelines allow up to 10 financed properties. Portfolio lenders may have different limits. A specialist investor lender can help you structure your portfolio financing.