Finance Your Rental Property Based on Its Rental Income.
A DSCR loan evaluates a rental property’s income potential instead of relying on your personal income to qualify.
Buying your next rental or reviewing an investment-property refinance? Start with the property, the rent, and the financing that fits your plan.
Let the rental property lead the conversation.
Buy an investment property
Review financing before you make an offer, with attention to the expected rent and ownership plan.
Refinance a rental
Purchase, rate-and-term refinance, and cash-out options may be available for eligible investment properties.
Review the whole investment
A financing approval is only one part of your decision. Compare the loan costs with your plans for the property.
What does DSCR mean?
DSCR stands for Debt Service Coverage Ratio. It compares the property’s qualifying rental income with the housing payment used by the loan program. We confirm the eligible rent and required payment calculation for your specific file.
A simple illustration
If qualifying monthly rent is $2,500 and the program’s qualifying housing payment is $2,000, the ratio is 1.25 ($2,500 ÷ $2,000). A ratio of 1.00 means those two figures are equal.
Illustration only—not a rate quote, payment offer, or approval. This ratio does not account for every investment expense. Budget separately for vacancies, repairs, maintenance, and management.
One DSCR loan does not fit every investor.
Available options differ. Select programs start at a 640 credit score, while others start at 660. Loan sizes can reach $3 million. Reserve requirements generally start at three or six months, depending on the option and loan amount.
Some options require rental coverage of 1.00 or 0.80; others permit lower coverage, subject to additional eligibility review. LLC ownership may be available. Financing limits, terms, and property requirements vary. Program maximums cannot automatically be combined.
Match the loan to your exit plan.
Ask about prepayment charges before choosing a loan, especially if you plan to sell or refinance soon. Longer-term and interest-only options may be available. Interest-only payments do not reduce principal, and payments increase when principal repayment begins.
Start with the property and a few key details.
- Property address, type, purchase price or estimated value
- Current lease or expected rental income, and how that rent will be supported
- Estimated taxes, insurance, and association dues
- Your approximate credit score and funds available for the transaction
- Existing financing, investment experience, and ownership structure
- How long you expect to hold the property and your refinance or sale plans
Send a brief overview through the contact form. I’ll let you know which supporting documents to upload securely as we review the file.
Investor questions, answered plainly.
Can I use a DSCR loan for the home I live in?
This page covers investment-property financing. If you will occupy the home, we should review an appropriate owner-occupied loan instead.
Does this mean no paperwork?
No. Credit, funds, ownership, the property, and rental documentation still require review. We will confirm the documentation list for your selected program.
Does the rent have to cover the entire payment?
Not under every option. Lower-coverage programs may be available, but eligibility and terms differ. A loan that qualifies can still require you to contribute money each month.
Can I close in an LLC?
Potentially. Tell me your intended ownership structure early so we can confirm entity documentation and the selected program’s requirements before closing.
Can I finance a short-term rental or a condo?
We need to confirm the exact property and rental strategy against the selected program. Do not assume that eligibility for a long-term rental also covers vacation rentals or every condominium.
How much cash will I need?
We will review the required funds for the transaction, closing costs, and reserves together. Credit, rental coverage, property type, and loan structure affect that amount.
Have a rental property in mind?
Tell me about the property and your investment goals. We can review a financing path before you commit.
Information is for general educational purposes and is not a commitment to lend. Investment-property programs, eligibility, terms, and availability are subject to lender/investor requirements and final underwriting approval. Not all borrowers or properties will qualify. Individual circumstances vary. Equal Housing Lender.