Investment property financing based on rental income rather than personal income
Qualify based on the property's rental income performance rather than your personal income or tax returns.
Perfect for experienced investors looking to expand their portfolios without traditional income documentation.
Accept DSCR ratios as low as 0.75 for strong borrowers, with better rates for higher cash flow properties.
Debt Service Coverage Ratio (DSCR) loans are specialized investment property financing designed for real estate investors who want to qualify based on a property's rental income rather than their personal income. This innovative approach allows investors to expand their portfolios without traditional income documentation requirements.
DSCR calculation divides the property's monthly rental income by the monthly mortgage payment (principal, interest, taxes, insurance, and HOA fees). A DSCR of 1.0 means rental income exactly covers the mortgage payment, while 1.25 means rental income is 25% higher than the payment, providing positive cash flow.
Most DSCR lenders require a minimum ratio of 1.0-1.25, though some accept ratios as low as 0.75 for strong borrowers with compensating factors. Higher DSCR ratios typically result in better interest rates and terms, as they indicate stronger cash flow and lower investment risk.
These loans are ideal for experienced real estate investors, self-employed borrowers with complex income situations, investors purchasing multiple properties simultaneously, those with seasonal or variable income, and borrowers who want to separate investment property financing from personal finances.
DSCR loans are available for various property types including single-family rentals, small multi-family properties (2-4 units), condos, and townhomes. Some lenders offer DSCR financing for short-term rentals (Airbnb/VRBO) using projected rental income based on market analysis.
Qualification focuses on the investment property's performance rather than personal income. Lenders evaluate rental market analysis, lease agreements or rent rolls for occupied properties, borrower's real estate investment experience, credit score (typically 620+ minimum), and available cash reserves.
Down payment requirements typically range from 20-25% for single-family rentals, with higher requirements for multi-unit properties or borrowers with lower credit scores. Cash reserves of 2-6 months of mortgage payments are usually required, demonstrating ability to handle vacancy periods.
The application process is typically faster than traditional investor loans since extensive income documentation isn't required. Focus is on property analysis, rental income verification, and borrower's real estate experience rather than tax returns and employment verification.
Dani specializes in DSCR loans and works with multiple investor-focused lenders to find the best terms for your investment strategy. He helps analyze property cash flow, structures deals for optimal DSCR ratios, and guides investors through the streamlined approval process.
Analyze rental income potential and calculate DSCR ratio for your investment property.
Review your real estate experience, credit profile, and available cash reserves.
Verify current leases or obtain rental market analysis for projected income.
Connect with specialized DSCR lenders offering the best terms for your situation.
Complete streamlined approval process and close on your investment property.
Let Dani help you secure DSCR financing based on your property's cash flow potential, not your personal income.