DSCR Loans 101: The Smarter Way to Fund Rental Properties

What If You Could Fund a Rental Property Without Tax Returns or W-2s?

If you’re a real estate investor—especially one who’s self-employed or scaling fast—you’ve probably run into traditional loan headaches:

• Endless requests for tax returns

• Employment verification you don’t have

• Underwriters who don’t understand your strategy

Here’s the good news: DSCR loans don’t care about your job or income. They care about your asset’s ability to cash flow.

What is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio—a loan product designed specifically for real estate investors.

Instead of using your income to qualify, lenders look at how much income the property itself generates compared to its monthly costs.

The Simple Formula:

DSCR = Gross Monthly Rent ÷ PITIA  (PITIA = Principal + Interest + Taxes + Insurance + HOA)

• A DSCR of 1.0 means the property breaks even

• A DSCR above 1.0 means the property cash flows

• A DSCR under 1.0 may still qualify, depending on the lender

Why Smart Investors Use DSCR Loans

✅ No W-2s or personal income verification
✅ No employment history required
✅ LLC and corporate closings allowed
✅ Works for long-term rentals, Airbnbs, and multi-units
✅ Great for scaling portfolios without red tape

Who Are DSCR Loans Best For?

• Self-employed real estate investors

• First-time investors with solid credit and reserves

• Airbnb/VRBO property owners

• Investors buying through LLCs

• Anyone looking to buy based on property performance, not personal income

Real Talk: Is DSCR Right for You?

If you’re buying a property that pays for itself—or close to it—you could get approved with minimal documentation.

You bring the deal.
We bring the financing strategy.
And it starts with one conversation.

Want to know if your deal qualifies? Let’s run the numbers.