DSCR Loan vs. Conventional Investment Loan: Which Is Better?
Compare DSCR and conventional investment loans on qualifying, speed, property limits and cost to decide which fits your next deal.
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Nationwide DSCR lending · All 50 states
DSCR Loans Made Easy: Qualify on Rent, Close in 14 Days
Buy or refinance rental property anywhere in the country based on the property's income, not your paycheck. No W-2s, no tax returns and no employment verification, with a 0.75x DSCR floor, rates from 5.75% and up to 85% LTV.
- Qualify on the property's rent, not personal income
- Single-family, condo, 2-4 unit, multifamily and short-term rentals
- LLCs, first-time investors and foreign nationals welcome
- No cap on the number of financed properties
Find your state
Choose where the property is located to see local market details and start your quote.
Start My ApplicationNo tax returns · same-day quote · no hard credit pull to start
DSCR financing
What is a DSCR loan?
A DSCR loan (Debt Service Coverage Ratio loan) is an investment-property mortgage that looks at the rent a property earns instead of your personal income. We divide the property's monthly rent by its full monthly payment: principal, interest, taxes, insurance and any HOA dues (PITIA). If the rent covers the payment, the property can qualify.
That makes DSCR one of the fastest and most flexible ways for investors to buy and refinance rentals. Self-employed investors, business owners and portfolio builders often show low taxable income on paper, which can stall conventional loans. A DSCR loan skips that problem because tax returns and W-2s are not part of the decision.
| Qualifies on | The property's rent ÷ PITIA (DSCR), not personal income |
| Rates from | 5.75% for the strongest profiles |
| Max LTV | Up to 85% on purchase · 75-80% on cash-out |
| Min DSCR | From 0.75x with compensating factors |
| Min FICO | 620+ (best pricing at 720+) |
| Vesting | Individual, LLC or entity · foreign nationals eligible |
| Property types | Single-family, condos, 2-4 unit, multifamily, short-term rentals |
| Closing | As fast as 14 days |
The DSCR advantage
Why go for a DSCR loan?
Qualify on rent
The property's income drives approval. Pay stubs, W-2s and employment history are not requested.
No tax returns
Low taxable income after deductions will not hold back a deal that cash flows.
Scale without a cap
Each property is judged on its own cash flow, so there is no limit on financed properties.
Close in an LLC
Hold each rental in an entity for liability and organization, or in your own name.
Fast closings
With no income documents to gather, a clean file can fund in as few as 14 days.
High leverage
Up to 85% LTV on purchase and a 0.75x DSCR floor leave room for taxes and insurance.
Flexible properties
Single-family, condos, 2-4 units, small multifamily and permitted short-term rentals.
Purchase or refinance
Buy, refinance, or pull cash out to fund your next acquisition.
How it works
Get your DSCR loan in three steps
1
Tell us about the property
Share the address, the rent (lease or expected) and the price or value. It takes a few minutes and no hard credit pull.
2
Get your quote
We calculate your DSCR with real taxes and insurance and return a term sheet, often the same day.
3
Close and fund
Appraisal, title and underwriting move quickly with no income documents, with closings in as few as 14 days.
Ready to see your numbers?
Same-day tiered quote, no hard credit pull to start.
DSCR loans by state
Find your state's DSCR loan page
We fund DSCR loans in all 50 states. Open your state to see local rental market details, housing trends, major employers, hospitals, colleges, malls and attractions that shape rental demand.
FloridaMarylandGeorgiaCaliforniaNorth CarolinaOhioPennsylvaniaTennesseeTexasColoradoIllinoisConnecticutNew JerseyVirginiaMichiganKansasKentuckyLouisianaMinnesotaMississippiNevadaNew YorkSouth CarolinaWashingtonWest VirginiaWisconsinWyomingIndianaMaineMassachusettsAlaskaArizonaArkansasDelawareHawaiiIdahoIowaMissouriMontanaNebraskaNew HampshireNew MexicoNorth DakotaOklahomaOregonRhode IslandSouth DakotaUtahVermontAlabama
Free tool
Rent & DSCR calculator
Enter the property's rent, loan terms and carrying costs to estimate your DSCR and monthly cash flow.
Property & loan
Illustrative only; not a rate quote or commitment to lend. Your final DSCR is based on the property's actual rent (lease or appraiser rent schedule), taxes and insurance.
Compare
DSCR loans vs. conventional investment loans
| Feature | DSCR loan | Conventional investor loan |
|---|---|---|
| Qualifies on | Property rent (DSCR) | Personal income and debt-to-income |
| Tax returns / W-2s | Not required | Required |
| Property limit | No cap | Often limited to about 10 |
| Close in an LLC | Yes | Usually personal name only |
| Typical closing | As fast as 14 days | 30-60 days |
| Typical rate | Often higher | Often lower |
General comparison only. Terms vary by lender, borrower and property.
Answers
DSCR loan FAQ
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is an investment-property mortgage that qualifies you on the property's rental income instead of your personal income. Gross rent is divided by the full monthly payment (principal, interest, taxes, insurance and HOA, or PITIA). No W-2s, tax returns or employment verification are required.
How is DSCR calculated?
Divide the property's monthly rent by its total monthly payment (PITIA). A DSCR of 1.0x means the rent exactly covers the payment, above 1.0x means the property cash flows, and below 1.0x means the rent falls short. Many lenders want 1.0x to 1.25x or more; our program goes as low as 0.75x with compensating factors.
What credit score do I need?
A minimum FICO score of 620 is typical, though approval at that tier usually comes with a larger down payment and a higher rate. Scores of 720 and above unlock the best pricing and the highest loan-to-value ratios.
How much down payment do I need?
Most purchases require 20 to 25% down, and borrowers with strong credit and a strong DSCR may qualify for up to 85% LTV. Cash-out refinances are usually capped at 75 to 80% LTV depending on property type and loan size.
Can I close in an LLC, and are foreign nationals eligible?
Yes. You can close in your personal name, an LLC or another entity, and foreign nationals and first-time investors are welcome. Foreign borrowers typically provide alternative credit documentation, larger reserves and a larger down payment. Speak with an attorney or tax advisor about the best structure.
How fast can a DSCR loan close?
A clean file can close in as few as 14 days because there are no tax returns, W-2s or employment checks to collect. Real timelines depend on appraisal scheduling, title work and how quickly you return insurance quotes and entity documents.
Can short-term rentals like Airbnb and Vrbo qualify?
Yes, where short-term rentals are permitted. Income can be underwritten with booking history or a market rent schedule. Local licensing, zoning and HOA rules vary, so confirm the property can operate as a short-term rental before you buy.
Is there a limit on how many DSCR loans I can have?
No. Unlike conventional financing, which often caps investors around ten financed properties, DSCR loans have no property cap as long as each property cash flows and you meet reserve requirements.
From the blog
DSCR loan guides & investor tips
How to Calculate DSCR on a Rental Property (With an Example)
Learn the DSCR formula, what counts in the payment, and how a worked example shows whether a rental property qualifies.
Read more →What Is a DSCR Loan? A Plain-English Guide for Real Estate Investors
A DSCR loan qualifies you on the rent a property earns instead of your personal income. Here is how it works, who it fits and what to expect.
Read more →Put your rental's income to work
Apply in minutes. No tax returns, no hard credit pull to start.