← Back to all Investor Loan Options
No tax returns. No DTI. No personal income docs. The property’s cash flow is the file — and that changes everything about how you scale.
DSCR is the product that broke open serious-investor lending. Before DSCR became a standardized non-QM offering, investors past the agency 10-property cap had three options: pay all cash, jam through commercial lenders with commercial-style underwriting on every single asset, or stop scaling. Now there is a fourth option — and for most landlords building a real portfolio, it is the default after they hit the agency ceiling. The lender does not underwrite your tax return. The lender underwrites the property. If gross rent covers the PITIA payment, the file qualifies.
That single underwriting flip — from borrower to property — solves the three biggest pain points serious investors hit: heavy tax write-offs that suppress AGI, the agency property cap, and the desire to close in an LLC. DSCR handles all three without breaking a sweat. The trade is pricing roughly 0.50%-1.50% above conventional NOO, which on most cash-flowing rentals is absorbed by the rent inside the first 18 months.
What it actually is
DSCR stands for Debt Service Coverage Ratio. The ratio is calculated as gross monthly rent divided by full PITIA — principal, interest, taxes, insurance, and association dues if applicable. A ratio of 1.00 means the rent exactly covers the payment. A ratio of 1.20 means the rent covers the payment with 20% headroom. Most DSCR programs require ≥ 1.00 at standard pricing, though we have programs that go below 1.00 with rate add-ons for investors who want to buy in appreciation-driven markets where rent has not caught up to acquisition price.
No personal income documentation gets pulled. No tax returns. No paystubs. No W-2s. No DTI calculation. The lender pulls your credit, verifies your reserves, orders the appraisal with a market-rent estimate (Form 1007 for long-term, or an STR addendum for short-term rentals), and decides off the ratio. Vesting can be in personal name or LLC — most DSCR loans close in an LLC for entity protection.
Who it is built for
- Buy-and-hold landlords scaling beyond the 10 financed-property agency cap
- Self-employed investors with heavy tax write-offs whose tax returns understate their actual cash flow
- Short-term rental operators (Airbnb, VRBO) on properties without 12-24 months of long-term lease history
- BRRRR investors refinancing out of hard money into permanent debt — DSCR is the dominant exit on these files
- Investors who want LLC vesting for asset protection, partnership structures, or anonymity
- Foreign-owned US LLCs purchasing US rental property
The basics
- Minimum credit score: 660 (700+ unlocks the best pricing tier; 720+ is treated as premium).
- Maximum LTV: 80% on purchase, 75% on cash-out refinance.
- Reserves: 6 months of PITIA per financed property — same standard as agency.
- Minimum DSCR: 1.00 at standard pricing. Sub-1.00 available with rate add-ons (often down to 0.75) for appreciation-play markets.
- Loan amount range: $100K minimum on most programs; $3M+ on the high end.
- Vesting: Personal name or LLC (LLC is the more common structure on DSCR).
- No personal income docs: No tax returns, paystubs, W-2s, or DTI calculation.
- Eligible property types: 1-4 unit residential, warrantable and non-warrantable condos, condotels, and short-term rentals.
Three things to know going in
Insider Insight #1 — The PITIA in DSCR includes everything, and people forget the I and the A.
Investors run the DSCR math in their head as “rent ÷ mortgage payment” and come up with a clean 1.20 ratio, only to find out at underwriting that the PITIA includes property taxes (often $500/mo on a Florida rental), insurance ($150-$300/mo, more in coastal zones), and HOA dues if the property is in a condo or townhouse community ($300-$500/mo is common). When the full PITIA gets calculated, the same property may come in at 0.95. Run the full PITIA before you make an offer.
Insider Insight #2 — Short-term rental income on DSCR — two appraisal paths.
Most DSCR lenders accept STR income two ways. Path A is conservative: the appraiser fills out a standard Form 1007 with the long-term market-rent estimate, ignoring the property’s STR potential. This usually under-prices a strong STR. Path B is aggressive: an STR-specific appraisal addendum that prices off projected nightly rate × occupancy × 365 (often using AirDNA data). Path B unlocks the actual cash-flow numbers that justified buying the property in the first place.
Insider Insight #3 — Sub-1.00 DSCR is available, but it costs.
Some programs let you close at DSCR as low as 0.75 with rate add-ons of 0.50%-1.25% above standard DSCR pricing. This unlocks investor purchases in high-appreciation markets where sales prices have outrun rents — coastal South Florida, parts of Central Florida, urban infill in major metros. The play is appreciation-driven: bring extra reserves, eat the rate hit, and ride rent growth and asset appreciation for 3-5 years until the file naturally re-prices.
Real-world scenario
An investor with 11 financed properties (just over the agency cap) buys a $340K single-family rental in Tampa with projected long-term rent of $2,650/month. Full PITIA on the new loan at 25% down: roughly $2,150 (P&I + taxes + insurance, no HOA). DSCR ratio: $2,650 / $2,150 = 1.23 — well above the 1.00 threshold, so the file prices at standard DSCR pricing rather than a sub-1.00 add-on. He brings $85K down + ~$10K closing + $13K reserves to close, and the property closes in his existing LLC. No tax returns submitted. No paystubs. The full file is credit + reserves + appraisal + LLC docs — start to clear in 21 days.
Quick FAQ
What DSCR ratio do I actually need?
1.00 is the standard threshold for best-tier pricing. Below 1.00 is doable on programs with rate add-ons, often down to 0.75. Above 1.20 puts you into the strongest pricing tier on most programs. The higher your DSCR, the cheaper your money.
Can I close the loan in an LLC?
Yes — LLC vesting is the most common structure for DSCR. You can close in an existing LLC or form a new one before closing. Most lenders want the LLC documents (operating agreement, articles, EIN) submitted in underwriting, and the personal guarantor (you) signs alongside the entity.
How does DSCR pricing compare to conventional NOO?
DSCR rates run roughly 0.50%-1.50% higher than conventional NOO at equivalent LTV and credit. The premium reflects the no-income-docs underwriting and the secondary-market pricing on non-QM paper. On most cash-flowing rentals the rate delta is absorbed by the rent inside the first 18 months.
Can I use DSCR for a property I am buying as a primary residence?
No. DSCR is non-owner-occupied only. The qualification is property cash flow, which only applies to rentals. Primary residences run on owner-occupied programs (conventional, FHA, VA, jumbo, bank statement).
Free pre-approval. Soft credit pull. Zero hit to your score.
Before you make an offer, you need to know what the bank will actually back you on. A real pre-approval — not a quick online estimate — gives you the loan amount, the program, the rate range, and the monthly payment in writing. We pull a soft credit report (no impact to your score), review your income and reserves, and run the deal through underwriting logic so you walk into a property tour or a 1031 exchange knowing exactly what you can close on.
For investors, this matters double. Listing agents on rental properties take cash buyers and pre-approved investor offers seriously — everyone else gets passed over. Get the pre-approval first, then go shopping with leverage.
>> APPLY NOW — START YOUR PRE-APPROVAL <<
Have a scenario you want to talk through first? Reach out here.
Aleksandra Vasic — Mortgage Loan Originator, NMLS #[YOUR NMLS HERE] | True Blue Lending NMLS #2380218 | Equal Housing Opportunity. This is not a commitment to lend. All loans subject to credit approval.