What Is a
DSCR Loan?
Real estate investing made simpler.
A DSCR loan (Debt Service Coverage Ratio loan) is a type of investment property loan that qualifies based primarily on the property’s rental income rather than your personal income.
It’s designed for real estate investors who want a faster, more flexible way to finance rental properties and build long-term wealth.
T H E A D V A N T A G E S
Why Investors Choose DSCR Loans
A smarter, more flexible way to grow your real estate portfolio.
Qualify with
Property Cash Flow
Rental income helps determine qualification rather than relying primarily on personal employment income.
Less Traditional
Documentation
Programs may be available without W-2s, pay stubs, or personal tax returns depending on program.
Flexible Vesting
Options
In many cases, the property can be titled in your personal name or an eligible LLC or entity.
Multiple Loan Options
Purchase, rate-and-term refinance, and cash-out options are available depending on program.
1–4 Unit &
5–8 Unit Properties
Finance single-family, duplexes, triplexes, fourplexes and larger multifamily properties.
Build a Larger
Portfolio
Use rental property cash flow to acquire more properties and scale your investments faster.
SIDE BY SIDE
DSCR Loan vs. Traditional Investment Loan
See how DSCR financing gives real estate investors a clear advantage.
| FEATURE | DSCR LOAN | TRADITIONAL INVESTMENT LOAN |
|---|---|---|
| Primary Qualification | Property's rental income (DSCR) | Personal income, DTI, and credit |
| Income Documentation | Reduced documentation (no W-2s or tax returns in many cases) | Typically requires W-2s, tax returns, full income verification |
| Vesting Options | Personal name or eligible LLC/entity (depending on program) | Typically personal name only |
| Property Types | 1–4 units and 5–8 units (program dependent) | Often limited to 1–4 units |
| Purpose | Purchase, rate-and-term, or cash-out | Purchase, or refinance (cash-out may be limited) |
| Speed | Faster, more streamlined | Longer documentation and underwriting process |
| Best For | Real estate investors focused on building a portfolio | Owner-occupied or traditional investors |
- I N V E S T .
- G R O W .
- B U I L D .