How is DSCR calculated?

DSCR = Gross Monthly Rent ÷ Monthly PITIA (Principal + Interest + Taxes + Insurance + HOA). A ratio of 1.25 means the property generates 25% more income than the payment — generally considered strong.

Can I use projected rent instead of current rent?

Yes. For vacant properties or new purchases, most lenders will use a market rent analysis (typically from an appraiser) to determine qualifying rent. You don’t need an existing lease.

Can I close in an LLC?

Yes. Most DSCR lenders allow — and some prefer — closing in an LLC or other business entity. This is one of the key advantages of DSCR loans for portfolio investors.

Are short-term rentals (Airbnb/VRBO) eligible?

Yes, with the right lender. Short-term rental income can be used to qualify using either historical platform income or a market rent analysis. Not all DSCR lenders accept STR income — we’ll match you with one who does.

Is there a limit on how many properties I can finance?

DSCR loans typically have no limit on the number of financed properties, unlike conventional loans which cap at 10. This makes them ideal for active portfolio builders.

Real Estate Investors

DSCR Investor Loans — Qualify on Rental Income

Qualify based on the rental income of the property — not your personal income. Build your rental portfolio without W2s, tax returns, or employment verification.

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Program Highlights

No personal income verification
No W2 or tax returns required
LLCs and corporations welcome
Short-term rentals (Airbnb/VRBO) eligible
Multi-family up to 8 units
Loan amounts up to $5M
620+ credit score
Available in 48 states

What Is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan qualifies based on the income generated by the investment property — not the borrower’s personal income. The lender calculates DSCR by dividing the property’s gross monthly rent by the total monthly payment (principal, interest, taxes, insurance, and HOA if applicable).

A DSCR of 1.0 means the rent exactly covers the payment. Most lenders prefer a DSCR of 1.0 or higher, with better terms available at 1.25+. Some lenders will go below 1.0 for strong borrowers with significant reserves or high credit scores.

DSCR loans are ideal for real estate investors who have multiple properties, are self-employed, or simply prefer not to document personal income. There’s no limit on the number of financed properties in most programs, and LLCs are welcome — which makes these loans particularly useful for investors building a portfolio under a business entity.

Short-term rental income (Airbnb, VRBO) is eligible under many DSCR programs, typically using a market rent analysis or historical rental income from the platform. Our network includes lenders who specifically underwrite short-term rental properties.

Program Guidelines

Min. Credit Score

620+

Loan Amounts

Up to $5M

Min. DSCR

0.75–1.0+

Max LTV

Up to 80%

Property Types

SFR, 2–8 Units, STR

Entity Types

Individual, LLC, Corp

Frequently Asked Questions

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