For investors
DSCR Loans
Investment property financing that qualifies on the rental income the property produces, not on your personal tax returns.
How DSCR loans work
DSCR stands for Debt Service Coverage Ratio, and the idea behind it is straightforward: the loan is underwritten against what the property earns rather than what you earn. If the rent covers the payment by a healthy enough margin, the deal works, regardless of what your personal tax returns look like.
For investors this solves two problems at once. The first is documentation: no tax returns, no W-2s, no employment verification, which matters enormously if you write off aggressively or your income is complicated. The second is scale. Conventional financing caps how many properties you can hold, and DSCR financing does not work that way, so a portfolio can keep growing past the point where conventional lending stops.
The tradeoff is that terms are priced differently than owner-occupied financing, and lenders vary widely in how they calculate the ratio and what minimum they will accept. That variance is exactly why shopping a DSCR loan across several lenders is worth doing rather than taking the first quote.
FAQ
DSCR questions
Do I need to show my tax returns?
No. That is the central feature of a DSCR loan, qualification rests on the property’s rental income against the proposed payment, not on your personal income documentation.
What ratio do I need?
Lenders set their own minimums, and they differ meaningfully. Some want the rent to comfortably exceed the payment; others will work with a thinner margin at different pricing. Because the thresholds vary, this is a loan worth shopping rather than accepting one answer on.
Can I use a DSCR loan for a short-term rental?
Often yes, though lenders treat short-term rental income differently from long-term leases, and some will not count it at all. It depends on the lender and the documentation available for the property.
How many properties can I finance this way?
DSCR lending is not subject to the property-count limits that constrain conventional financing, which is why investors move to it once a portfolio reaches a certain size.
Other programs worth a look
- Conventional Loans Competitive rates, flexible terms and low monthly payments for buyers with good credit and steady income.
- FHA Loans Government-backed financing built for buyers with limited savings or a shorter credit history.
- VA Loans Financing for veterans, active-duty service members and eligible surviving spouses.
- USDA Loans Zero-down financing for eligible homes in rural and many suburban areas across the Carolinas.
- Jumbo Loans Financing for homes priced above conforming loan limits, with underwriting handled personally.
- First-Time Buyer Programs Low down payment loans, grants and flexible approval paths for buyers purchasing their first home.
Let's find out what you qualify for.
Start with a conversation. If it makes sense to go further, we will, and if it does not, you will know that too.