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DSCR Loans for Real Estate Investors | No Tax Returns, Rental Income Qualifies

DSCR loans let investors qualify on rental property cash flow — no tax returns, no W-2s. Available in 38 states with no licensing delay. Loan amounts up to $3.5M, purchase and cash-out.

DSCR Loans for Real Estate Investors

A DSCR loan (Debt Service Coverage Ratio loan) is a non-QM mortgage that qualifies real estate investors based on the property’s rental income — not the borrower’s personal income. No tax returns. No W-2s. No employment verification.

If the rent covers the payment, you may qualify.

Check DSCR Eligibility Talk to a DSCR Specialist — (833) 350-9185

How DSCR Works

The lender calculates one simple ratio: monthly rent divided by the full monthly mortgage payment (principal, interest, taxes, insurance, and HOA — called PITIA).

DSCR = Monthly Rent ÷ PITIA

A DSCR of 1.00 means the property’s rent exactly covers the payment. A DSCR of 1.25 means there’s a 25% cushion. Most standard programs approve at DSCR 1.00 or higher, with better rates at 1.15 and above. Some programs allow DSCR below 1.00 with a larger down payment or reserves.

Quick Example

  • Property: Single-family rental in Atlanta, GA
  • Monthly rent: $2,400
  • Monthly payment (PITIA): $1,920
  • DSCR: $2,400 ÷ $1,920 = 1.25 — qualifies

No tax returns. No pay stubs. The property qualifies itself.

4 Steps to Close a DSCR Loan

  1. Property identified — Purchase or refinance a 1–8 unit investment property (SFR, condo, 2-4 unit, multi-family, mixed-use, short-term rental).
  2. Rent documented — Current lease, projected rent (market rent from appraiser’s 1007 form), or short-term rental income history (AirDNA data, Airbnb statements).
  3. DSCR calculated — Rent divided by PITIA. Meet the minimum ratio for the program tier.
  4. Close — Standard appraisal, title, and funding. Vest in your personal name or LLC. Typical close: 21–30 days.

DSCR Program Details

FeatureStandard DSCRJumbo DSCR
Loan amounts$100,000 – $1,500,000Up to $3,500,000
Minimum FICO620680+
Purchase LTVUp to 80%Up to 75–80%
Cash-out LTVUp to 75%Up to 70%
Minimum DSCR1.00 (some programs allow 0.75)1.00–1.15
Property types1-4 unit, condo, non-warrantable, short-termSame + 5-8 unit, mixed-use
Term30-year fixed, 40-year IO optionsSame
VestingPersonal name or LLCSame
Seasoning (cash-out)3–6 months typical; 0 months on premium programsVaries
Reserves3–12 months PITIA6–12 months
Income docsNoneNone

Short-term rental DSCR: We use documented Airbnb/VRBO history or AirDNA market projections to qualify short-term rentals. The program treats STRs as legitimate investment income with no requirement for long-term lease.

Available in 36 States + D.C. — Fast Origination

DSCR is one of the few mortgage products that doesn’t require a state-by-state NMLS broker license in many states. We can originate DSCR loans in 36 states plus D.C. — no licensing delay, same-week processing.

DSCR-Eligible States (No Licensing Required)

Alabama, Alaska, Arkansas, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming.

Also Licensed In

Arizona, California, Idaho, Iowa, Oregon — states where we hold broker NMLS licensing for DSCR and other investment loan products.

Hawaii & New York: NONI Only (Not DSCR)

We don’t offer standard DSCR in Hawaii or New York — our wholesale partner only sells the NONI product in those two states. NONI qualifies investors on rental income the same way DSCR does, with higher loan amounts (up to $3.5M), 85% purchase LTV, and a dedicated foreign-national program.

High-Activity Investor Markets

See all state DSCR pages →

Who Uses DSCR Loans

  • First-time investors buying their first rental
  • Portfolio landlords scaling 5, 10, 20+ units
  • Self-employed entrepreneurs whose tax returns don’t reflect true earning power
  • LLC and entity investors keeping properties off personal credit
  • Short-term rental operators using Airbnb/VRBO projected income
  • Cash-out refi investors recycling equity into the next deal
  • Flippers going to hold transitioning from hard money to permanent financing
  • Foreign nationals buying U.S. rentals (see our NONI program )

If the property cash flows, the investor qualifies — regardless of personal income documentation.

Investor Scenarios

Scenario 1: First-Time Investor — Atlanta Single-Family Rental

A W-2 tech employee wants to buy his first rental in Atlanta without touching his personal income qualifying. The property is $280,000; market rent is $2,200/month.

  • Down payment: $70,000 (25%)
  • Loan amount: $210,000
  • Monthly PITIA: $1,750
  • DSCR: $2,200 ÷ $1,750 = 1.26
  • Result: Approved. No tax returns. Property qualifies on cash flow.

Scenario 2: Portfolio Landlord — Multi-Unit Cash-Out

An experienced investor owns a $900,000 fourplex in Dallas free and clear. She wants cash out to fund the next acquisition. Rents total $7,200/month.

  • Appraised value: $900,000
  • Cash-out: $630,000 (70% LTV)
  • Monthly PITIA: $5,400
  • DSCR: $7,200 ÷ $5,400 = 1.33
  • Result: $630,000 cash out funded. No income verification. Funds available for next deal.

Scenario 3: Short-Term Rental — Miami Condo

A Miami investor is purchasing a 2-bedroom condo for $525,000 to operate as an Airbnb. AirDNA projects $4,500/month gross in the sub-market; the condo HOA and STR expenses need to be netted.

  • Down payment: $131,250 (25%)
  • Loan amount: $393,750
  • Projected gross rent: $4,500/month
  • Monthly PITIA (incl HOA): $3,400
  • DSCR: $4,500 ÷ $3,400 = 1.32
  • Result: Approved using STR projection methodology. Airbnb-first investor financing.

DSCR vs Bank Statement vs NONI

FeatureDSCRBank StatementNONI
Qualifies onProperty rentBorrower’s depositsProperty rent (premium tier)
Best forRental investorsSelf-employed buying any propertyExperienced investors, larger loans
Max loan$1.5M (standard), $3.5M (jumbo)Up to $3M$3.5M
Purchase LTVUp to 80%90% primary / 75-80% investmentUp to 85%
Ownership seasoning (cash-out)3–6 monthsN/ANone (DSCR 1.15+)
Foreign nationalsMost programs: noNoYes — dedicated program
Self-employment requiredNoYes (2+ years)No
Personal income docsNone12-24 months bank statementsNone
LLC vestingYesUsually primary onlyYes

Quick guide:

  • Buying a rental? Start with standard DSCR.
  • Need a bigger loan or cash-out with no seasoning? Step up to NONI .
  • Buying a home to live in while self-employed? Use a Bank Statement Loan instead.

Typical DSCR Requirements

  • Credit score: 620 minimum; 700+ for best pricing
  • Down payment: 20–25% for purchase; 25–30% for cash-out refinance
  • Property types: 1–4 unit residential; 5–8 unit available on jumbo programs; condos (including non-warrantable); short-term rentals; mixed-use
  • Occupancy: Investment property only (no primary residence)
  • DSCR minimum: 1.00 on most programs; 0.75 available with compensating factors
  • Reserves: 3–12 months PITIA in liquid assets
  • Loan amounts: $100,000 – $3,500,000 (jumbo)
  • Vesting: Personal name or LLC/entity
  • Term options: 30-year fixed, 40-year with 10-year interest-only, 5/6 and 7/6 ARMs

See If Your Property Qualifies

Check DSCR eligibility in 60 seconds — no tax returns, no credit pull, no obligation.

Check DSCR Eligibility Talk to a DSCR Specialist — (833) 350-9185

Frequently Asked Questions

A DSCR loan is a mortgage that qualifies real estate investors based on the rental income a property generates, rather than on the borrower’s personal income. The lender calculates the Debt Service Coverage Ratio — monthly rent divided by the full monthly mortgage payment (PITIA) — and approves the loan if the ratio meets the program minimum, typically 1.00 or higher. No tax returns, W-2s, or employment verification are required.
DSCR = Gross monthly rent ÷ total monthly mortgage payment (PITIA). PITIA includes principal, interest, taxes, insurance, and any HOA dues. A DSCR of 1.00 means rent exactly covers the payment; 1.25 means there’s a 25% cushion. Example: $3,000 rent ÷ $2,400 PITIA = 1.25 DSCR.
Most standard DSCR programs require a minimum ratio of 1.00 — the property must at least break even. Better rates and terms are typically available at 1.15 and above. Some programs (often called “DSCR no-ratio”) will approve loans below 1.00 with compensating factors like a larger down payment, stronger credit, or additional reserves.
No. DSCR loans are underwritten on the property’s rental income, not the borrower’s personal income. You don’t submit tax returns, pay stubs, or employer verification. Self-employed investors and W-2 earners alike use the same DSCR qualifying method.
Yes. Short-term rental DSCR is a specialized program. We use either documented Airbnb/VRBO income history (12 months preferred) or AirDNA market projections for the specific property and sub-market. STR DSCR programs are available in nearly all the same states as standard DSCR.
Yes. LLC vesting is standard on DSCR loans. This is a key advantage for investors who want to keep investment properties off their personal credit report and maintain entity-level liability protection. Closing in an LLC requires the operating agreement, EIN, and formation documents.
Standard DSCR programs generally cap at $1.5 million. Our jumbo DSCR programs extend to $3.5 million, and the NONI program — a premium tier of DSCR — goes to $3.5M with additional flexibility on cash-out and LTV.
20% is typical for investment property purchase, with 25% recommended to access better pricing. Cash-out refinances typically cap at 70–75% LTV, meaning you keep at least 25–30% equity in the property. Jumbo DSCR and lower-DSCR scenarios usually require higher down payments.
We originate DSCR loans in 38 states plus D.C. without a broker NMLS license, and also in our five additional licensed states (AZ, CA, ID, IA, OR). That’s 43 states plus D.C. total. See the full list above or browse our state-specific pages.
Typical closing timelines are 21–30 days. Since no tax returns or IRS transcripts are required, DSCR loans often close faster than conventional investment property loans. Properties with existing leases and clean title can close in as little as 14–21 days.
No hard limit. Most investors stack DSCR loans across a growing portfolio. Some programs have a cap on properties financed with the same lender; in those cases, we spread loans across multiple DSCR lender relationships to accommodate portfolio investors.
  • NONI Investment Loans — Premium DSCR tier with loan amounts to $3.5M, no ownership seasoning on cash-out, and foreign national programs.
  • Bank Statement Loans — Self-employed and buying a home to live in? Qualify on bank deposits instead of tax returns.
  • Jumbo Mortgages — High-balance financing above conforming limits.
  • Hard Money Loans — Short-term bridge financing for fix-and-flip deals.
  • Rehab Loans — Purchase + renovation financing for value-add investors.

Get DSCR Loan Quote

Check DSCR Eligibility Talk to a DSCR Specialist — (833) 350-9185

1st Nationwide Mortgage, NMLS 1281. DSCR loans subject to credit approval, appraisal, and property cash flow requirements. Not all applicants will qualify. Loan amounts, LTV, and DSCR minimums vary by program and wholesale investor. Some programs are not available in all states. Terms and conditions apply.

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Check DSCR Eligibility Call (833) 350-9185