Loan Program
DSCR Rental Loans
30-year financing qualified on the property's cash flow, not your tax returns.
A DSCR loan is a 30-year term mortgage that qualifies the property on its Debt Service Coverage Ratio, the relationship between rent and the monthly payment. There is no personal income verification, which makes it the standard tool for building a rental portfolio.
Purchase, rate-and-term refinance and cash-out refinance are all available on leased or vacant 1 to 4 unit properties, including short-term rentals.
How DSCR Loans Qualify
DSCR stands for debt service coverage ratio: the property's monthly rent divided by the monthly principal, interest, taxes, insurance and HOA. A ratio of 1.0 means the rent covers the payment. Higher ratios get better pricing, and there are options below 1.0 for strong borrowers and high-equity deals. There is no personal income verification and no tax returns.
Loans are 30-year terms with fixed and adjustable options and interest-only periods available. They can be used to purchase, to refinance a rental you own, or to cash out equity from a stabilized BRRRR.
What We Need to Quote
The property address, unit count, monthly rent (current lease or market rent if vacant), annual taxes, insurance and HOA, the as-is value, and the purchase price or payoff. If you have owned the property for less than six months, tell us the acquisition date; seasoning rules vary by program.
Best For
- Buying or refinancing leased rental property
- Luxury and rural rentals, including short-term rentals
- Cash-out on a stabilized BRRRR
- Investors who prefer not to document personal income
What We Look At
- Monthly rent, taxes, insurance and HOA
- As-is value and loan amount requested
- Whether the property is leased or vacant
- Estimated FICO and liquidity
Have Ready
- Property address and unit count
- Current lease or market rent
- Tax and insurance figures
- Payoff and acquisition date, if refinancing
FAQ
DSCR Rental Loans Questions
Does the property need to be leased?
No. Vacant properties qualify using market rent from the appraisal. A signed lease at or above market rent improves pricing.
Do you do DSCR loans on short-term rentals?
Yes. Short-term rentals qualify using documented booking income or a market rent analysis, depending on the property and location.
How long does a DSCR loan take to close?
2 to 3 weeks. The appraisal and lease review drive the timeline.
Is there a prepayment penalty on DSCR loans?
Most DSCR loans carry a stepdown prepayment penalty in the early years, which lowers the rate. Options with a shorter or no penalty are available at a higher rate. We will show you both.
How soon after a rehab can I refinance into a DSCR loan?
Programs differ on seasoning. Some allow a cash-out refinance on the new appraised value shortly after the rehab is complete and the property is leased; others require six months of ownership. Tell us the acquisition date and we will match the program.
How do I apply?
Choose your loan type on the Get a Quote page and complete the online application. It takes about 5 minutes. We review it, send terms, and once you accept we open the file and order title and insurance.
Do I need an LLC?
Investor loans are made to an entity, usually an LLC. If you do not have one yet, our Form Your LLC page will get you set up quickly, and the entity only needs to exist before closing, not before you apply.
Where do you lend?
Nationwide, with our deepest experience in Nashville and across Tennessee. Luxury and rural properties are welcome as long as the value is supported by comparable sales.
Available Nationwide
We fund this program in markets across the country. Local guides for our home region:
Other Programs