What Is a DSCR Loan?

If you want to buy a rental property, you don't have to show your tax returns.

DSCR (Debt Service Coverage Ratio) loans qualify based on one thing: does the rent cover the mortgage?

If yes, you qualify. Your personal income doesn't matter.

How it works:

Lender checks expected rent vs. your mortgage payment (PITIA)

If the ratio is 1.0 or higher, you're good

No W-2s, no tax returns, no employment verification

You can close in an LLC

The catch:

Rates are 1-1.5% higher than conventional (roughly 7.5-8% right now)

Most lenders want 20-25% down

You still need decent credit (680+ for best pricing)

When it makes sense: You're self-employed, you already own 5+ properties, or you want the simplicity of qualifying on the property itself.

I close DSCR loans every month across San Diego and California. The product works. Most people just don't know it exists.

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