What Is a DSCR Loan?

How a DSCR Loan Works

DSCR stands for Debt Service Coverage Ratio. It's an investment property loan that qualifies you based on whether the property's rental income covers its debt — not your personal income, tax returns, or employment history.

DSCR = Monthly Rental Income ÷ Monthly Debt (PITIA)

PITIA = Principal · Interest · Taxes · Insurance · HOA

A DSCR of 1.0 means rent exactly covers the payment. Above 1.0 means it cash-flows. Because qualification is tied to the property — not your personal finances — DSCR loans are the go-to tool for investors at every stage, from first rental to a hundred-door portfolio.

Try the DSCR Calculator → Get a Quote

Based in New Jersey

DSCR Loans in Our Home State

We know which NJ markets pencil and which ones don't. See the breakdown.

DSCR Loans in NJ →

              Rates as low as 5.99%
              Competitive 30-year fixed rates
              Rates as of July 2026
            

              Up to 85% LTV
              85% purchase, 80% cash-out refi
            

              No income docs
              Qualify on property cash flow
            

              1–8 units
              Single-family, 2–4 units, 5–8 units, condos, STRs
            

              Min. DSCR 0.75
              Best rates at 1.20–1.25 DSCR
            

              Close in 14 days
              From application to funding
            

              Loan Types Available
              Purchase · Cash-Out Refinance · Rate & Term Refinance
            

Why the Bank Said No — and Why It Doesn't Matter

          Depreciation kills your qualifying income
          You can own $2M in rental property and show $40K on your 1040. Banks see the $40K. We see the rental income.
        

          Write-offs work against you
          Self-employed borrowers legitimately reduce taxable income — and conventional lenders punish them for it.
        

          The 10-property cap
          Conventional guidelines cap you at 10 financed properties. DSCR loans have no limit — your portfolio grows as fast as your deals do.
        

          Banks move at bank speed
          Conventional underwriting takes 30-45+ days. Good deals don't wait. We close in as little as 14 days.
        

DSCR Loan Requirements

Straightforward requirements built for real estate investors — not W-2 earners.

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Minimum DSCR: 0.75 — Properties that don't fully cover debt service still qualify.

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Best terms at 1.20–1.25 DSCR — Stronger cash flow means better rate and leverage.

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Minimum credit score: 600

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Close in as little as 14 days

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Foreign nationals eligible — No U.S. credit or income history required.

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Property types: Single-family, 2–4 units, 5–8 units, condos, short-term rentals.

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No tax returns, no W-2s — Qualify on the property, not your personal finances.

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Purchase · Cash-Out Refinance · Rate & Term Refinance

How to Get a DSCR Loan

Traditional financing forces you to document personal income. We skip all of that and look at what the property earns.

Tell us about the property Purchase or refinance, and the expected or actual monthly rent.

We calculate the DSCR Rental income against the projected monthly payment. No personal income needed.

You qualify on the asset No tax returns, no W-2s, no bank statements required.

Close in as little as 14 days Fund the deal and repeat on the next one. No income ceiling on how many loans you hold.

Get a Quote →

DSCR Loans vs. Conventional Loans

	DSCR Loan	Conventional Loan
Qualifies on	Property rental income	Personal income (W-2s, tax returns)
Income verification	None	Required
Loan limit by DTI	No	Yes
Foreign nationals	Eligible	Rarely
Short-term rentals	Allowed	Restricted
Typical close	As little as 14 days	30–45+ days
Best for	Investors scaling a portfolio	Owner-occupant buyers
Multiple loans	No limit	Capped by DTI and conventional guidelines

DSCR rates run modestly above conventional owner-occupied rates — that's the cost of skipping income verification and portfolio caps. But the right question isn't whether the rate is lower. It's whether you can get the loan at all. For most active investors, conventional financing says no. DSCR says yes.

Common Questions

What is a DSCR loan?

A DSCR (Debt Service Coverage Ratio) loan qualifies based on the rental income of the investment property rather than the borrower's personal income. If the property generates enough rent to cover the mortgage payment, you can qualify — no W-2s or tax returns required.

What is the minimum DSCR to qualify?

We go as low as a 0.75 DSCR. For the best pricing and leverage, 1.20–1.25 is ideal. Use our DSCR Calculator to check where your deal lands before you apply.

What credit score do I need?

We lend to investors with credit scores starting at 600. Higher scores unlock better rates and leverage, but 600 gets you in the door.

Can I get a DSCR loan for a short-term rental (Airbnb)?

Yes. Short-term and vacation rental income qualifies. Airbnb and VRBO properties are eligible as long as the market rent or projected STR income supports the DSCR ratio.

How fast can a DSCR loan close?

As little as 14 days from application to closing, depending on appraisal and title turnaround. We move fast because we make our own credit decisions.

How many DSCR loans can I have at once?

There's no income ceiling on how many DSCR loans you can hold. You can grow a rental portfolio without conventional lending caps slowing you down.