Educational guide · Investor
What are DSCR loans?
DSCR (Debt Service Coverage Ratio) loans qualify the property, not you. If the rent the property generates covers the mortgage payment, the property qualifies — regardless of W-2, tax returns, or employment history.
What is DSCR?
It's the ratio of rental income to mortgage payment. Hypothetical example:
Hypothetical monthly PITI: $2,400
DSCR = 3,000 / 2,400 = 1.25
Most DSCR lenders require DSCR of 1.0 or higher. A 1.25 DSCR means rent covers the payment with 25% cushion. Some lenders accept lower DSCR with compensating factors.
Numbers above are illustrative, not an offer.
Use our DSCR calculator with property-tax presets for California, Texas, and Arizona.
Who it fits
- Investors buying rental property
- Owners of many properties (traditional banks cap you)
- Foreign nationals investing in US real estate
- Business owners who prefer not to disclose personal income
Advantages
- No tax returns required
- No W-2 or employment verification
- Close under an LLC
- No cap on properties owned
Related programs for investors
For investors without US residency — documented with home-country banking instead of US credit.
Why the US is one of the best jurisdictions globally for real-estate ownership, and how to structure via an LLC.
If you also want to finance a primary residence with self-employed income from your business.
Extract equity from an existing property to fund the down payment on your next investment.