DSCR Loan Programs
Everything you need to know about qualifying for a DSCR loan. No W-2 required — qualify on your property's rental income.
Program Eligibility
Application Process
Pre-Qualification
Complete our quick online form with property details and financials. No credit pull at this stage.
Scenario Review
Your loan officer reviews your deal and presents DSCR vs. bridge options, LTV tiers, and estimated cash-to-close.
Full Application
Submit lease agreements, property address, reserve documentation, and entity documents if applicable.
Appraisal & Underwriting
Property appraisal ordered and rent schedule verified. Underwriting reviews DSCR ratio, credit, and reserves.
Clear to Close
Final approval issued. Review closing disclosure, sign documents, and fund — typically within 21–30 days total.
What is a DSCR loan?
A Debt Service Coverage Ratio (DSCR) loan qualifies borrowers based on the property's rental income rather than personal income. If the property generates enough rent to cover the mortgage payment (PITIA), you can qualify — no W-2s, tax returns, or employment verification needed.
How is DSCR calculated?
DSCR = Monthly Rental Income ÷ Monthly PITIA (Principal, Interest, Taxes, Insurance, and Association Dues). A DSCR of 1.0 means the rent exactly covers the payment. Most lenders prefer 1.0 or higher, though some programs accept ratios as low as 0.75.
What credit score do I need?
DSCR loan programs are available with a minimum credit score of 620. Your credit score is one of several factors in the loan options available to you.
Can I use a DSCR loan for short-term rentals (Airbnb)?
Yes! Many DSCR programs accept short-term rental income. Lenders typically use 12-month Airbnb/VRBO income history or a market rent analysis from a third-party provider to determine qualifying rent.
How fast can I close?
Most DSCR loans can close in 21–30 days, significantly faster than conventional investment property loans. Having your documents organized (lease, property info, reserves documentation) helps accelerate the process.
Can I hold the property in an LLC?
Absolutely. DSCR loans are designed for investors and commonly allow vesting in an LLC, corporation, or other business entity. This is one of the key advantages over conventional financing.
How is my interest rate determined?
We don't publish rates on this site. Your rate depends on your credit score, loan-to-value, DSCR ratio, property type, loan amount and market conditions, and is set during underwriting. Contact BJ or James for a personalized quote.
Is there a prepayment penalty?
Most DSCR loans include a prepayment penalty period (typically 3-5 years). Some programs offer reduced or no prepayment penalties, with different pricing. We'll help you choose the structure that matches your investment strategy.