Qualify on rent, not income.
DSCR (Debt Service Coverage Ratio) loans let the property's rental income do the talking. No W-2s, no tax returns, no employment verification. Ideal for self-employed investors and those scaling a rental portfolio.
How DSCR qualification actually works
DSCR is the property’s monthly rent divided by its full monthly payment — principal, interest, taxes, insurance, and any HOA dues. A DSCR of 1.0 means the rent exactly covers the payment; 1.25 means 25% cushion. Lenders price off that ratio, your credit score, and the loan-to-value. Your personal income never enters the file.
That’s the entire point. No tax returns, no W-2s, no employment verification, no debt-to-income calculation. Self-employed investors who write off aggressively, and portfolio builders who’ve hit Fannie Mae’s ten-property ceiling, qualify on the deal instead of the paperwork. Run your numbers in our DSCR calculator to see where a property lands.
Built for how investors actually operate
Our DSCR pool covers 1–4 unit residential, small multifamily, and short-term rentals — with STR income documented through AirDNA-style market data or actual booking history. Loans close in an LLC, which most conventional programs won’t allow, keeping the property off your personal credit and inside your liability structure.
For properties that don’t cash flow on paper yet — a heavy value-add, a seasonal market — no-ratio DSCR programs lend up to 75% LTV without a coverage requirement at all, priced accordingly. Thirty-year fixed, ARMs, and interest-only structures are all on the menu.
DSCR Loans: common questions
What DSCR ratio do I need to qualify?
Most programs want 1.0 or better — rent covering the full payment. Stronger ratios earn better pricing, and no-ratio programs exist up to 75% LTV for properties that don’t cover yet. Below 1.0, expect a larger down payment or a rate premium.
Can I close a DSCR loan in an LLC?
Yes — most DSCR lenders prefer it. The loan is underwritten to the property and guaranteed by you personally, but title and the note sit with the entity, which conventional investor loans don’t allow.
Do DSCR loans work for short-term rentals like Airbnb?
Yes. STR-friendly programs qualify the property on market short-term rental data or your actual booking history instead of a long-term lease. Markets with seasonal swings get averaged, not cherry-picked.
How much down do DSCR loans require?
Typically 20–25% down on a purchase, with the strongest pricing at 25%+. Credit score and the coverage ratio move the requirement — a 1.25+ DSCR with strong credit gets the most leverage.
Are DSCR rates higher than conventional investment property rates?
Usually somewhat higher — you’re paying for the documentation flexibility. But for investors who can’t qualify conventionally, or have maxed their ten financed properties, the comparison isn’t DSCR versus conventional; it’s DSCR versus not doing the deal.
Send us the scenario. We'll tell you if DSCR Loans is the right fit — and what it prices at.
No SSN, no credit pull. A licensed broker reviews the scenario and replies by the next business day.
Program features described above are general descriptions of loan programs offered by third-party lenders and are subject to change without notice. This is not an offer of credit or a commitment to lend. All loans are subject to credit approval, income and asset verification, property appraisal, and program eligibility requirements. Not all applicants will qualify. Verified Home LLC is a mortgage broker, not a lender, and arranges loans with third-party providers. NMLS #2693996. Equal Housing Opportunity.