DSCR Loans Available in All 50 States | Home Loans By Tera
DSCR Investor Loans · All 50 States

Qualify on Rental Income — Not Your Tax Returns

DSCR loans are designed for real estate investors who want to scale without the paperwork headache. No W-2s. No tax returns. No personal income verification. If the property cash flows, we may be able to make it work.

Get Your Numbers Takes 2–3 minutes · No commitment required
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Available in All 50 States No Income Verification Short-Term Rentals Eligible LLC Closing Available 90+ Wholesale Lenders

DSCR Loan at a Glance

50States Available
620+Min Credit Score
20%Typical Min Down
1.0+Target DSCR Ratio
No Tax Returns or W-2s Required
Scale Your Portfolio Without DTI Limits
Invest Anywhere in All 50 States

What Is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. It's a type of non-QM mortgage designed specifically for real estate investors — where the loan qualifies based on the property's ability to pay for itself, not on your personal income.

Traditional mortgages look at your W-2s, tax returns, and debt-to-income ratio. DSCR loans ask one simple question instead: does this property generate enough rental income to cover its mortgage payment?

If the answer is yes, you may qualify — regardless of what your tax returns look like or how many properties you already own.

Perfect for Self-Employed Investors

Your tax returns may show lower income due to deductions — DSCR sidesteps that entirely.

No Limit on Number of Properties

Conventional loans cap you at 6–10 financed properties. DSCR has no such limit.

Available in All 50 States

Invest anywhere in the country — I have access to DSCR lenders in every state.

How the DSCR Ratio Works

Lenders calculate your DSCR using this formula:

Monthly Gross Rental Income
÷
Monthly PITIA*
= DSCR

*PITIA = Principal + Interest + Taxes + Insurance + HOA

1.25

Property earns 25% more than the mortgage costs. Ideal — best rates & terms.

1.0

Rental income exactly covers the mortgage. Qualifies with most programs.

0.75

Below breakeven — some programs still qualify with larger down payment.

Real example: Property rents for $3,100/mo. Total PITIA is $2,471/mo. DSCR = 3,100 ÷ 2,471 = 1.25

Built for Investors Who Think Beyond the W-2

DSCR loans solve the biggest problem investors face — qualifying without showing personal income.

Self-Employed Investors

Your tax write-offs are working against you with conventional lenders. DSCR ignores your tax returns entirely and focuses on the property.

Portfolio Builders

Already at the conventional loan limit of 6–10 properties? DSCR has no cap. Keep scaling without hitting a wall.

Short-Term Rental Investors

Own or buying an Airbnb or VRBO property? Many DSCR programs accept projected or actual short-term rental income to qualify.

Out-of-State Investors

DSCR loans are available in all 50 states. Invest in high-yield markets anywhere in the country — no matter where you live.

LLC Investors

Many DSCR programs allow you to close in an LLC — keeping your investment properties separate from your personal assets.

First-Time Investors

No prior landlord experience required. If the property cash flows, you can qualify — DSCR is one of the best entry points into real estate investing.

What Makes DSCR Loans Different

These are the features that make DSCR the go-to financing tool for serious real estate investors in 2026.

No Income Documentation

No W-2s, no tax returns, no pay stubs, no employment verification. Qualification is based entirely on the property's rental income potential.

Available in All 50 States

I have access to DSCR lenders across the country through my wholesale network. Invest anywhere — your location doesn't limit your options.

Short-Term Rentals Eligible

Airbnb and VRBO properties may qualify using projected or actual short-term rental income. Florida and high-tourism markets are especially strong.

LLC Closing Available

Many programs allow you to close the loan in an LLC name — protecting your personal assets as your portfolio grows.

No Property Limit

Unlike conventional loans that cap you at 6–10 properties, DSCR loans have no limit on the number of investment properties you can finance.

Cash-Out Refinance Available

Already own investment properties? DSCR cash-out refinances let you pull equity out of existing rentals and redeploy it into new acquisitions.

Flexible Loan Terms

30-year fixed, 40-year fixed, and interest-only options available. Interest-only terms can lower your monthly payment and improve your DSCR ratio.

Faster, Simpler Underwriting

Without the mountain of personal income documents, DSCR loans typically move through underwriting faster than conventional investor loans.

What Properties Qualify for DSCR Financing?

DSCR loans are available for a wide range of income-producing residential investment properties.

Single-Family Rentals

The most common DSCR property type. Long-term or short-term rental.

2–4 Unit Properties

Duplexes, triplexes, and fourplexes — all eligible for DSCR financing.

Condos & Townhomes

Warrantable condos and townhomes used as investment properties qualify.

Short-Term Rentals

Airbnb and VRBO properties using projected or actual STR income.

Fix & Hold Properties

Renovated properties transitioning to rental use — based on projected market rent.

Note: DSCR loans are for investment/rental properties only. Primary residences do not qualify.

DSCR Loans vs. Conventional Investor Loans

See why serious investors are choosing DSCR over conventional financing.

Conventional Investment Loan

Requires W-2s, tax returns & pay stubs
Personal debt-to-income ratio used to qualify
Limited to 6–10 financed properties
Self-employed borrowers often can't qualify
LLC closing generally not allowed
More documentation = longer underwriting
Write-offs reduce qualifying income

DSCR Investor Loan

No income documentation required
Property income qualifies the loan
No limit on number of financed properties
Perfect for self-employed & 1099 investors
LLC closing available on many programs
Streamlined underwriting process
Tax write-offs don't hurt your qualification

What You Need to Qualify

DSCR loans are much simpler to qualify for than conventional investor loans — but there are still key requirements.

620+ Minimum Credit Score Higher scores unlock better rates & terms. 700+ is ideal.
20–25% Typical Down Payment Some programs allow as little as 15% with strong DSCR.
1.0+ Target DSCR Ratio 1.25 or higher unlocks the best rates. Sub-1.0 programs exist.
3–12mo Cash Reserves Required Lenders want to see you can cover payments if rent is interrupted.
Rental Property Must Be Investment Use Must be a non-owner-occupied income-producing property.
Appraisal Rental Survey Required Lender orders an appraisal with a rental income survey to confirm market rent.

Not sure if your deal qualifies?

Tell me the property address, expected rent, and purchase price — I'll run the numbers and tell you where you stand. No commitment required.

Run My Numbers

Run Your Numbers Before You Call

Enter your deal details below to see your estimated DSCR ratio and whether your property is likely to qualify. This is an estimate — reach out for exact numbers.

Property Details

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Your DSCR Ratio

Enter your deal details to see results

This calculator provides estimates for educational purposes only. Actual loan qualification depends on credit score, lender guidelines, property type, and other factors. Not a commitment to lend.

Getting a DSCR Loan Is Simpler Than You Think

The process is streamlined by design — no income docs means less back-and-forth.

1

Tell Me About the Deal

Share the property address, expected rental income, purchase price, and your credit score range. I'll give you an immediate read on whether it's a strong DSCR candidate.

2

I Shop 90+ Lenders

I run your scenario through my wholesale lender network to find the best DSCR program for your property type, DSCR ratio, and investment goals.

3

Light Document Collection

No tax returns or W-2s needed. We'll collect basic items: credit authorization, entity docs (if LLC), and proof of reserves.

4

Property Appraisal with Rental Survey

The lender orders an appraisal that includes a rental survey confirming the market rent used for your DSCR calculation.

5

Close & Add to Your Portfolio

DSCR loans often close in 3–4 weeks. No personal income verification = fewer conditions and a smoother finish line.

Start Your Pre-Qualification → Takes 2–3 minutes · No commitment required

DSCR Loan FAQs

DSCR stands for Debt Service Coverage Ratio. It measures whether a property generates enough rental income to cover its mortgage payment. The formula is: Monthly Gross Rent ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + HOA). A DSCR of 1.25 means the property earns 25% more than the mortgage costs — that's the sweet spot for most lenders.
No — that's the core benefit of DSCR loans. No W-2s, no tax returns, no pay stubs, and no employment verification are required. The qualification is based entirely on the property's rental income and your creditworthiness. This is why DSCR is ideal for self-employed investors whose tax returns don't reflect their actual financial strength.
Yes — many DSCR programs accept short-term rental income. Lenders typically use market rent from comparable STR properties (via tools like AirDNA) or actual rental history to calculate your DSCR. Markets like Florida, Michigan resort areas, and other tourism-heavy markets are particularly strong for STR DSCR loans. Keep in mind that local regulations on STRs vary by municipality.
Yes — many DSCR programs allow and even prefer LLC closing. This is one of the biggest advantages over conventional investor loans, which typically require borrowing in your personal name. Closing in an LLC keeps your investment properties legally separated from your personal assets. Specific requirements vary by lender — I'll match you with programs that fit your entity structure.
Most DSCR lenders require a minimum credit score of 620. However, a score of 700 or higher will give you access to significantly better rates and terms. Some programs accept scores as low as 580–600 with larger down payments and stronger DSCR ratios. I'll match your credit profile with the right lender in my network.
Some programs still allow financing with a DSCR below 1.0 — often called "no-ratio" or sub-1.0 DSCR programs. These typically require a larger down payment (25–30%+), a stronger credit score, and accept a higher interest rate in exchange for the lower cash flow coverage. These are common in high-appreciation markets where investors prioritize long-term equity growth over immediate cash flow.
Hard money loans are short-term (typically 6–24 months), asset-based bridge financing used for acquisitions and renovations. DSCR loans are long-term (30 or 40 year) permanent financing for stabilized rental properties. Most investors use hard money to acquire and renovate, then refinance into a DSCR loan once the property is rent-ready — a strategy called "BRRRR" (Buy, Rehab, Rent, Refinance, Repeat).
Yes — DSCR loans are available in all 50 states, including Michigan and Florida. As a licensed mortgage broker in both Michigan and Florida with access to 90+ wholesale lenders, I can find DSCR programs for investment properties in either state or anywhere else in the country.

Let's Find the Right DSCR Loan for Your Next Investment

Tell me about your deal — property type, expected rent, purchase price. I'll run the numbers and show you exactly what you qualify for.

Get Your Numbers Takes 2–3 minutes · No commitment · No income docs needed
All 50 States No Tax Returns Required Short-Term Rentals Eligible LLC Closing Available 90+ Wholesale Lenders NMLS #2115126

DSCR loans are non-QM investment property loans and are not available for primary residences. All loans subject to credit approval. Interest rates, programs, and terms subject to change without notice. Not all applicants will qualify. This is not an offer to lend. Equal Housing Opportunity Lender. Tera Sommer NMLS #2115126 · Ease Mortgage NMLS #2273319.