DSCR Loans - Qualify on Rent, Not W-2s.
Last updated August 3, 2026
No tax returns. No DTI. Close in your LLC. If the rent covers the mortgage, you likely qualify - for a single rental or a 50-door portfolio. Available in many states.
DSCR Calculator
See if your rental property qualifies in seconds - no signup required.
This property qualifies, but the margin is tight.
This calculator provides an estimate for informational purposes only and is not a commitment to lend. Actual DSCR, rate, and qualification will vary based on individual loan terms, property details, and underwriting guidelines. ABS Home Mortgage, Inc., NMLS ID #209985. Equal Housing Lender. Rates, terms, and programs subject to change without notice. All loans subject to credit approval.
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What Is a DSCR Loan?
A DSCR loan - short for Debt Service Coverage Ratio loan - is a mortgage designed specifically for real estate investors. Instead of qualifying based on your personal income, tax returns, or debt-to-income ratio, the lender qualifies the property's rental cash flow.
If the rent the property brings in covers the monthly mortgage payment (principal, interest, taxes, insurance, and HOA), it qualifies. That's it. No W-2s, no pay stubs, no K-1s, no employment verification - and you can close in the name of an LLC, LP, or corporation for asset protection.
DSCR loans are the fastest-growing loan type for buy-and-hold investors, short-term rental (Airbnb / VRBO) operators, and self-employed borrowers who don't fit inside conventional Fannie Mae / Freddie Mac guidelines but have strong-performing rental assets. They're also part of a broader family of Non-QM loans that includes bank statement, asset-based, and 1099 income programs.
DSCR Loan at a Glance
- Qualifies on rental income, not personal income
- No tax returns, W-2s, or DTI required
- Close in an LLC, LP, or corporation
- 1–8 unit rentals, condos, and short-term rentals
- Loan amounts $100K to $3.5M+
- Up to 80% LTV on purchase and rate/term
How Do DSCR Loans Work?
DSCR loans replace personal income documents with a single, simple math question: Does the rent cover the payment?
PITIA = Principal + Interest + Taxes + Insurance + HOA (Association dues)
Quick Example
A single-family rental in Texas:
- Monthly Rent
- $2,400
- Monthly PITIA
- $2,000
- DSCR
- 1.20 ✓
Rent covers the payment by 20% - this property qualifies with strong pricing.
What You'll Provide
- Photo ID and credit authorization
- Signed lease or market-rent appraisal (Form 1007)
- LLC / entity docs if closing in a business
- 2 months of bank statements for reserves
- Property insurance quote
No tax returns. No pay stubs. No employer verification.
Why Investors Choose Our DSCR Program
A cleaner path to scale a rental portfolio - designed for investors, not W-2 borrowers.
No Tax Returns or W-2s
We qualify the property, not your personal income. Skip the pay stubs, K-1s, and DTI headaches.
Qualify on Rental Cash Flow
If the property's rent covers the mortgage payment (PITIA), you likely qualify - DSCR as low as 0.75 on select programs.
SFR, 2–8 Units, Condos & STRs
Long-term rentals, Airbnb / short-term rentals, and small multifamily up to 8 units, including condotels and non-warrantable condos.
Purchase, Refi & Cash-Out
Up to 80% LTV on purchase and rate/term, up to 75% LTV cash-out - vest in your name or an LLC.
Loan Amounts $100K – $3.5M+
30-year fixed, ARMs, and interest-only options. Portfolio pricing available for 5+ properties.
Built for Investors
Unlimited financed properties, foreign nationals welcome, and fast closings - many DSCR loans close in 21–30 days.
Program at a Glance
Real numbers, not marketing fluff. Actual terms depend on credit, LTV, property type, and DSCR - we'll price your exact scenario in one call.
- Loan Amounts
- $100,000 – $3.5M+
- Max LTV - Purchase / Rate-Term
- Up to 80%
- Max LTV - Cash-Out
- Up to 75%
- Minimum DSCR
- 0.75 (no-ratio available)
- Minimum FICO
- 660 (620 case-by-case)
- Terms
- 30-yr fixed, 5/6 & 7/6 ARM, Interest-Only
- Property Types
- SFR, 2–8 units, condos, non-warrantable, STR
- Vesting
- Individual, LLC, LP, Corp
- Prepayment
- 3/2/1, 5/4/3/2/1, or none
- Reserves
- 3–6 months PITIA typical
How the Process Works
- 1
Get a Quick Quote
Share the property address, estimated value, and expected rent. We'll return terms and a DSCR estimate in hours, not weeks.
- 2
Submit a Simple File
ID, credit authorization, a signed lease or market-rent appraisal, and entity docs if closing in an LLC. No tax returns required.
- 3
Appraisal & Underwriting
We order a 1007 rent schedule with the appraisal so DSCR is confirmed the same time value is confirmed.
- 4
Close in 21–30 Days
Sign at a title company or via remote online notary and start (or keep) collecting rent.
DSCR Loan FAQs
Ready to Finance Your Next Rental?
Get a real DSCR quote - with actual rate, LTV, and payment - in as little as one business day.
Also see: all loan products · jumbo loans · mortgage calculators
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