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DSCR Loan

Fast, Flexible Financing for Rental Properties

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Buy or Refinance based on Rental Income — No W-2s or Tax Returns Needed

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Up to 30 Year Terms

Maximum Repayment Term

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$75k-$100M+

Available to Qualified Borrowers

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Up to 85% LTV

Loan Amount Available

What is a DSCR Loan?

A DSCR (Debt Service Coverage Ratio) loan is a type of real estate financing designed specifically for investors purchasing or refinancing income-producing properties—primarily rentals. Rather than focusing on your personal income, these loans are underwritten based on the property’s ability to generate enough rental income to cover its debt obligations. This makes DSCR loans especially attractive to investors looking to grow their portfolio without traditional income verification hurdles.

DSCR loans are most commonly used by real estate investors seeking to scale quickly and efficiently. Since qualification is based on rental cash flow, not W-2s or tax returns, these loans are ideal for self-employed borrowers, full-time investors, or anyone aiming to keep their personal finances separate from their investment activity. Whether you’re acquiring a new property, refinancing a current one, or cashing out equity to reinvest—DSCR loans offer a flexible, streamlined path to long-term growth.

Benefits of DSCR Loans

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No Income Verification

Loan qualification is based off the property’s cash flow rather than your income.

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Close Under Your Business

Keep your personal name off public records and enjoy asset protection for your portfolio.

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Close in 3-5 Weeks

With Huge Capital, DSCR loans close in 21–35 days, keeping your investment timeline on track.

How do DSCR Loans Work?

DSCR (Debt Service Coverage Ratio) loans are a type of real estate financing designed specifically for rental property investors. Instead of relying on your personal income or tax returns, lenders evaluate the property's ability to generate income. They do this by comparing the property's monthly rental income to the monthly debt payments. If the income covers the loan payments (typically with a DSCR of 1.0 or higher), you can qualify—regardless of your employment history or personal debt-to-income ratio.

This makes DSCR loans ideal for self-employed investors, full-time landlords, or anyone looking to grow their portfolio without traditional income hurdles. You can close under your business entity, access 30-year fixed or interest-only terms, and avoid the paperwork associated with conventional loans. Whether you’re purchasing or refinancing a rental, DSCR loans offer a flexible, scalable solution where the property’s cash flow does the qualifying for you.

Are we a match? Here’s what we need.

Down Payment

As low as 10%

Credit Score

660+ FICO

Loan Amount

$75,000 Minimum

Experience

Cannot be 1st Time Home Buyer

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Apply for a DSCR Loan in Minutes

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Start with our fast, online form—designed to take just minutes.

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Complete Your Application

Receive a Personalized Offer

One of our funding experts will send you a tailored term sheet to review.

Accept and Secure Your Terms

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Review your offer, sign electronically, and lock in your funding terms.

Close the deal and receive your funds!

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Receive Your Funds & Close

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DSCR Loans vs. Mortgages

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DSCR Loans

DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors who want to qualify based on the income potential of the property—not their personal financials. These loans don’t require W-2s, pay stubs, or personal income verification, making them faster and easier to close. As long as the property's rental income can cover the loan payments, you’re in a strong position to qualify. This approach streamlines the process, ideal for scaling your portfolio. Investors benefit from flexibility, speed, and less red tape.

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Personal Mortgages

Traditional mortgages are underwritten based on your personal income, employment history, and debt-to-income (DTI) ratio. This makes the process slower and more document-heavy, often requiring tax returns, bank statements, and credit checks. Even if a property is cash-flowing, a borrower with high personal debt or inconsistent income could be denied. These loans are better suited for primary residences, not investment properties. For seasoned investors, this can limit growth and slow down acquisitions.

 FAQs

  • A DSCR loan is a real estate investment loan that qualifies the borrower based on the property’s income, not the borrower’s personal income or employment status.

  • Most DSCR loans offer 30-year fixed, 30-year interest-only, or adjustable-rate mortgage (ARM) options. 30-year fixed is the most commonly used term among investors.

  • Yes. Investors commonly use DSCR loans to cash out equity or refinance from hard money or short-term loans (like fix and flip loans).

  • Lenders typically fund 80-85% of the purchase price or appraised value for purchases or rate and term refinances, and up to 75% LTV for cash-out refinances.

  • DSCR = Net Operating Income ÷ Total Loan Payment.

    If a property brings in $2,000/month and the mortgage is $1,500/month, the DSCR is 1.33. A ratio above 1.0 means the property covers its own expenses.