No tax returns required
DSCR Loans for Rental Property Investors
Qualify from rental income — not personal W-2s. Built for growing portfolios.
Apply Now →What Is It?
A DSCR (Debt Service Coverage Ratio) loan is designed for investment properties where the rental income is the primary qualification driver. Instead of proving personal income with tax returns, underwriting compares the property’s income to the proposed housing payment (principal, interest, taxes, insurance, and HOA when applicable). Investors use DSCR loans to scale because the story is the property’s performance, not a W-2. These loans are not one-size-fits-all: reserves, credit, down payment, and the strength of the lease matter. I help investors understand what ratio is needed, what documentation is real, and how to avoid surprises at appraisal.
Who Qualifies
- Investment property with documented market rent and qualifying DSCR for the program
- Credit and liquidity that meet investor requirements
- Down payment aligned with occupancy type and cash-flow strength
- Borrower structure allowed by investor guidelines (LLC eligibility varies)
How Income Is Calculated
- Step 1 — Determine market rent. We use lease agreements and/or appraisal rent schedule to establish income.
- Step 2 — Calculate PITIA payment. We build the full housing payment including taxes, insurance, and HOA if applicable.
- Step 3 — Compute DSCR. DSCR is monthly rent divided by monthly payment — investors targets vary (1.0–1.25+).
- Step 4 — Loan sizing. We align loan amount and pricing to the ratio and reserve requirements.
What You’ll Need
- Lease agreement or rent schedule support
- Entity docs if applicable
- Insurance quote
- Purchase contract
- Bank statements for reserves
What Can Go Sideways
- Short-term rental income may be treated differently than long-term leases.
- Low DSCR can still work with more down payment or stronger reserves — but not always.
- Appraisal rent is not guaranteed until the appraisal is complete.
Real Scenario
An investor had strong rent on paper but messy personal taxes. Traditional underwriting kept killing the deal. We moved to DSCR, documented the lease path cleanly, matched the file to an investor that understood the market rent, and closed without a W-2 income verification story. This is the kind of loan banks will not touch — and The Mortgage Whiz closes.
Embedded Calculator
Run a quick estimate, then talk to me for a personalized quote. Calculations are estimates only and do not constitute a loan offer.
This program pairs best with the calculator tool linked above. NMLS #1547543.
FAQ
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No credit pull. No commitment. Just a straight answer on whether I can get you approved — and what it'll take.