Investor Loans
DSCR Loans
Traditional mortgage qualifying is built around your personal income. DSCR loans are built around the property. If the rental income covers the debt, you qualify. No W2s, no tax returns, no employment verification. Just the numbers on the deal.
No W2s
Income Verified by the Property
Scale
Your Portfolio
Fast
Clean Qualifying
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. It is a metric lenders use to measure whether a property generates enough rental income to cover its debt payments. A DSCR of 1.0 means the property breaks even — income equals expenses. A DSCR above 1.0 means the property cash flows positively.
Unlike conventional investment property loans, DSCR loans do not require you to document your personal income. No W2s, no tax returns, no pay stubs. The property qualifies based on its own income potential, which makes this product especially powerful for self-employed investors, high-net-worth borrowers with complex finances, and anyone who wants to scale a portfolio without hitting conventional income documentation walls.
How it is calculated
Divide the property's rental income by its debt payments. A 1.0 means break even. Above 1.0 means positive cash flow. The property's numbers do the qualifying, not yours.
Who it works for
Self-employed investors, high-net-worth borrowers with complex finances, and anyone who wants to grow a rental portfolio without hitting conventional income documentation limits.
Ready to Get Started?
Let's Run the Numbers on Your Deal
No pressure, no runaround. Tell us about the property and Todd and Aaron will tell you if the numbers work.
Key Benefits
No Personal Income Required
Qualify based on the property's rental income, not your W2 or tax returns. Your personal income picture stays out of it.
Scale Without Limits
Because each loan is evaluated on the property itself, you can add multiple DSCR loans to your portfolio without hitting conventional loan count limits.
Self-Employed Friendly
If your tax returns show less income than you actually earn, DSCR removes that friction entirely. The deal stands on its own.
Short-Term Rentals Eligible
Airbnb and VRBO income can be used to qualify in many cases, making DSCR a strong option for short-term rental investors.
Who Is It For?
DSCR loans are built for real estate investors who want to grow their portfolio without the friction of traditional income documentation. If you have ever been turned down for an investment property loan because your tax returns did not show enough income, or because you already have too many financed properties, DSCR is worth a serious look.
It is a particularly strong fit for:
- Self-employed investors whose tax write-offs reduce their documented income
- High-net-worth borrowers with complex financial structures
- Investors who have hit the conventional loan limit and need a path to keep growing
- Short-term rental operators using Airbnb or VRBO income
- Out-of-state investors buying in the Colorado Springs market
- Anyone who wants the deal to stand on its own without mixing in personal finances
Good to Know
DSCR loans typically require a minimum credit score of 620 to 680 and a down payment of 20% to 25%. Rates are generally higher than conventional investment property loans because of the reduced documentation requirements.
Todd and Aaron will tell you straight up whether the deal makes sense at current DSCR rates before you commit to anything.
The Formula
Rent Covers
The Debt.
If the monthly rent covers the mortgage payment, you are in the conversation. Todd and Aaron will calculate your DSCR ratio and tell you exactly where the deal stands.
How the Process Works
Run the DSCR Calculation
Todd and Aaron review the property's expected rental income against the projected debt payment to calculate your DSCR ratio. This tells you immediately whether the deal qualifies and what loan structure makes sense.
Credit and Asset Review
We review your credit score and confirm you have the required down payment and reserves. No employment verification, no income docs -- just credit and assets.
Property Appraisal and Rent Schedule
An appraisal confirms the property value and includes a market rent analysis. This is the core document that establishes the income side of your DSCR calculation.
Underwriting and Approval
Underwriting reviews the full file with a focus on the property metrics and your credit profile. The process is faster than conventional because there is no income documentation to verify.
Close and Add It to the Portfolio
Once approved, you close and the property joins your portfolio. When you are ready for the next one, we run the same process again.
Typical Timeline
21-30
Days to Close
Without income documentation to verify, DSCR loans move faster than conventional investment property loans. When a deal comes up, speed matters -- we are set up to move quickly.
Worth Knowing
Minimum DSCR of 1.0.
Most lenders require a DSCR of at least 1.0, meaning rent at minimum covers the debt. Some programs allow ratios below 1.0 with compensating factors. Todd and Aaron will find the right program for your specific deal.
Common Questions
How is the DSCR ratio calculated?
DSCR is calculated by dividing the property’s gross rental income by its total debt service — meaning the monthly principal, interest, taxes, insurance, and any HOA fees. A ratio of 1.25 means the property generates 25% more income than it costs to carry. A ratio of 1.0 means it breaks even. Most lenders want to see at least 1.0, and some programs reward higher ratios with better rates.
Can I use projected rental income or does the property need to be rented already?
Both situations work. If the property is already rented, we use the current lease. If it is vacant or not yet purchased, the appraiser provides a market rent analysis that establishes the expected rental income. That projected rent is what lenders use to calculate your DSCR ratio.
Can I use a DSCR loan for a short-term rental property?
Yes, in many cases. Short-term rental income from platforms like Airbnb and VRBO can be used to qualify, though lenders typically want to see historical income data from the property or comparable short-term rentals in the area. Todd and Aaron work with short-term rental investors regularly and know which programs accept this type of income.
How much do I need to put down on a DSCR loan?
Most DSCR programs require 20% to 25% down. Some programs allow less with a higher DSCR ratio or stronger credit profile. The down payment requirement reflects the fact that these are investment properties and lenders price in slightly more risk than a primary residence loan.
Are DSCR loan rates higher than conventional investment property rates?
Generally yes. The reduced documentation requirement comes with a slightly higher rate compared to a fully documented conventional investment property loan. That said, for many investors the tradeoff is worth it — especially if conventional income documentation would disqualify them entirely. Todd and Aaron will show you both options side by side so you can make an informed decision.
Still Have Questions?
Just Ask. We Pick Up the Phone.
No automated phone trees, no waiting on hold. You get Todd or Aaron directly.
Call Todd: (719) 482-5359 Call Aaron: (404) 455-5710