DSCR Loans for Real Estate Investors
Qualify based on your property's rental income, not your personal income. Perfect for self-employed investors and portfolio builders.
What is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is a specialized mortgage product designed specifically for real estate investors. Unlike traditional mortgages that require extensive documentation of personal income, tax returns, and employment verification, DSCR loans qualify borrowers based solely on the rental income generated by the investment property.
This innovative approach makes it easier for investors to grow their portfolios without the burden of traditional income verification requirements.
How DSCR Works
A Debt Service Coverage Ratio (DSCR) loan is a specialized mortgage product designed specifically for real estate investors. Unlike traditional mortgages that require extensive documentation of personal income, tax returns, and employment verification, DSCR loans qualify borrowers based solely on the rental income generated by the investment property.
The DSCR is calculated by dividing the property's monthly rental income by its monthly debt obligations (mortgage payment, taxes, insurance, and HOA fees). A DSCR of 1.0 means the property breaks even, while a DSCR above 1.0 indicates positive cash flow. Most lenders prefer a DSCR of 1.25 or higher, but Zeus Commercial Capital offers flexible options including no-ratio DSCR loans for experienced investors.
DSCR Calculation Example
Monthly Rental Income: $3,000
Monthly PITIA (Principal, Interest, Taxes, Insurance, Association): $2,400
DSCR = $3,000 ÷ $2,400 = 1.25
This property has a 1.25 DSCR, meaning it generates 25% more income than needed to cover its debt obligations. Use our free DSCR calculator to analyze your properties.
Why Choose DSCR Financing?
No Income Verification
No need to provide tax returns, W-2s, or pay stubs. Perfect for self-employed investors, business owners, and those with complex income structures.
Unlimited Properties
No restrictions on the number of financed properties. Build your portfolio without hitting traditional lending limits.
LLC Friendly
Close in your LLC or business entity name for liability protection and simplified bookkeeping.
Fast Closings
Close in as little as 14-21 days. Streamlined underwriting means you can capitalize on opportunities quickly.
Short-Term Rentals OK
Airbnb, VRBO, and other short-term rental properties qualify. We use market rents or actual income to calculate DSCR.
Flexible Credit
Credit scores as low as 620 may qualify. Recent credit events? We offer solutions for investors rebuilding credit.
No Ratio DSCR Loans
For experienced investors with strong credit profiles, we offer no-ratio DSCR loans that don't require the property to meet minimum DSCR thresholds. These loans are ideal for:
- Properties undergoing renovations or lease-up that don't yet have stabilized rental income
- High-value properties in appreciating markets where cash flow is secondary to appreciation
- Portfolio refinancing where overall portfolio performance is strong
- Investors with 10+ rental properties and proven track records
Typical Requirements: 700+ credit score, 20-25% down payment, 6-12 months reserves, and documented rental property experience. Learn more about no-ratio DSCR options.
DSCR Loan Terms & Requirements
Loan Features
- •Loan amounts: $75,000 - $3,000,000+
- •LTV up to 80% (purchase) / 75% (refinance)
- •30-year fixed, 5/1 ARM, 7/1 ARM, 10/1 ARM
- •Interest-only options available
- •No prepayment penalties (most programs)
Borrower Requirements
- •Credit score: 620+ (higher scores = better rates)
- •DSCR minimum: 1.0+ (no-ratio options available)
- •Reserves: 6-12 months PITIA
- •Property types: 1-4 unit residential
- •Occupancy: Non-owner occupied investment
Ready to Finance Your Next Investment Property?
Get a free quote in minutes. Our team specializes in DSCR loans and will help you find the best financing solution for your portfolio.