DSCR purchase
DSCR loans for buying rental property.
Qualify on what the property earns, not on your W-2s or tax returns. Business-purpose financing for investors buying long-term rentals, closed in your LLC.
How it works
The property qualifies, not your paycheck.
A DSCR loan sizes the mortgage off the property's debt service coverage ratio: the monthly rent divided by the full monthly payment, meaning principal, interest, taxes, insurance, and any HOA dues. If the rent covers the payment, the deal works. Your personal income never enters the math.
That is why investors with real portfolios use them. Self-employed borrowers, people with heavy write-offs, and anyone past the conventional limit on financed properties all qualify the same way: on the asset.
The bar is a ratio above 1.0, meaning the rent covers the payment. A 1.0 can sometimes be placed for a strong borrower, but a deal that doesn't cash flow on paper is one we tell you about up front, along with the fixes: more rent evidence, a smaller loan, or more down. Want to check a deal yourself first? Try our DSCR calculator.
We place the loan with the lender whose guidelines actually fit the property and your profile. Credit score and experience move the pricing, so the same property can price very differently from one lender to the next.
How the ratio works
A single-family rental leases for $1,850 a month. The full payment, with principal, interest, taxes, and insurance, comes to $1,600.
$1,850 ÷ $1,600 = 1.16 DSCR. The rent covers the payment with room to spare, so the deal qualifies on the property alone.
Illustrative example only. Real terms depend on the lender, the property, and the borrower, and are not a commitment to lend.
Typical terms
What a DSCR purchase usually looks like.
- Leverage
- Up to 75% of value80% is possible on some files, at a noticeably higher rate.
- Coverage ratio
- Above 1.0Rent has to cover the full payment. Below 1.0 is not placeable.
- Credit
- Starts around 640 to 660Varies by lender. Stronger scores buy better pricing.
- Income docs
- NoneNo W-2s, pay stubs, or tax returns.
- Term
- 30-year fixedPrepayment options vary. Keeping it long? A longer prepay usually buys a better rate.
- Vesting
- LLC or corporationNearly every file we place closes in an entity.
- Loan size
- From about $75,000Minimums vary by lender.
- Timeline
- 30 to 35 daysFrom a complete file to closing, appraisal and title permitting.
These are typical ranges across the lenders we place with, not a quote. Your actual rate, leverage, and terms depend on the property, your credit and experience, and the lender.
Is it the right loan
Who this fits, and who it doesn't.
Investors buying to hold.
- Long-term rentals you plan to keep
- Self-employed borrowers or anyone whose tax returns understate income
- Investors past the conventional limit on financed properties
- Purchases closing in an LLC or corporation
- Properties that already rent, or have clear market rent support
Deals that need a different loan.
- A home you plan to live in. We only finance investment property.
- A property that needs real renovation first. Look at fix-and-flip.
- Rent that doesn't cover the payment and can't be made to
- A resale inside a few months. A bridge or flip loan is cheaper to exit.
What we need
What it takes to quote it, and to close it.
- Property address and purchase price
- In-place lease or market rent estimate
- Annual property taxes and insurance quote
- Entity documents for the LLC or corporation
- Two months of bank statements for down payment and reserves
- A schedule of the investment properties you own
- Photo ID
- Fully executed purchase contract with all addenda
Send the deal
Address, price, rent, and a rough credit range. No documents and no credit pull needed for a quote.
We match the lender
We route it to the lender whose box fits the property, the ratio, and your profile, instead of shopping it everywhere.
Close in about a month
Appraisal, title, and insurance run in parallel. Most purchases close in 30 to 35 days.
Questions
DSCR purchase questions.
What is a DSCR loan?
What DSCR ratio do I need?
How much do I need to put down?
Do you need my tax returns?
Can I buy in my LLC?
Can I use a DSCR loan on a house I'll live in?
Other loan types
Not quite the right fit?
Have a rental under contract?
Two minutes to tell us what you're working on. No application fee, no credit pull to get a conversation started.