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    3. DSCR Loan (Investor Mortgage)
    Non-QM

    DSCR Loan (Investor Mortgage)

    "Let the property qualify itself."

    No personal income documentation. The property's rental income qualifies the loan. Perfect for real estate investors who want to scale without income verification headaches.

    20-25%

    Min Down

    620+

    Min Credit

    $3M

    Max Loan

    Check My PropertyTalk to an Investor Specialist
    Last reviewed: January 2026 · CMS Mortgage Editorial Team

    Is This Loan Right for You?

    This Loan is Perfect If You...

    • Real estate investor with rental properties
    • Self-employed and prefer no income documentation
    • Want to scale portfolio quickly without limits
    • Property cash flows at 1.0+ DSCR
    • Want LLC protection for asset separation

    This Might NOT Be Right If...

    • Purchasing a primary residence
    • Property does not cash flow (negative DSCR)
    • Less than 20% down payment available
    • Need personal income on application

    DSCR Loan (Investor Mortgage) Benefits

    Everything you need to know about your benefits

    No Tax Returns

    Skip the income documentation entirely. No W-2s, no pay stubs, no tax returns needed.

    No DTI Calculation

    Your personal debts don't matter. Only the property's income counts.

    Unlimited Properties

    No cap on financed properties. Scale your portfolio as fast as you want.

    LLC Friendly

    Close in your LLC or personal name. Protect your assets with entity ownership.

    Fast Closing

    No income verification means faster underwriting and quicker closings.

    Investor Focused

    Designed by investors, for investors. We speak your language.

    How It Works

    Your path to homeownership in just a few simple steps

    We Calculate the DSCR

    Monthly rent divided by total monthly payment (principal, interest, taxes, insurance, HOA).

    2

    Property Qualifies Itself

    If DSCR is 1.0 or higher, the property income covers the loan. You're qualified.

    No Income Docs Needed

    Skip tax returns, pay stubs, and DTI calculations. The property speaks for itself.

    Close Quickly

    Faster underwriting means faster closing. Get your investment property sooner.

    We Calculate the DSCR

    Monthly rent divided by total monthly payment (principal, interest, taxes, insurance, HOA).

    2

    Property Qualifies Itself

    If DSCR is 1.0 or higher, the property income covers the loan. You're qualified.

    No Income Docs Needed

    Skip tax returns, pay stubs, and DTI calculations. The property speaks for itself.

    Close Quickly

    Faster underwriting means faster closing. Get your investment property sooner.

    Understanding DSCR

    What is DSCR?

    The Formula

    DSCR = Monthly Rent ÷ Monthly Payment (PITIA)

    PITIA = Principal + Interest + Taxes + Insurance + Association (HOA)

    A DSCR of 1.0 means the rent exactly covers the payment.

    Above 1.0 means positive cash flow — you qualify!

    Example Calculation

    Monthly Rent$2,500
    Monthly Payment (PITIA)$2,200
    DSCR Calculation$2,500 ÷ $2,200

    Your DSCR

    1.14

    Qualified ✓

    DSCR Qualification Thresholds

    1.25+

    Excellent

    1.0-1.24

    Qualified

    0.75-0.99

    Limited Options

    Below 0.75

    Does Not Qualify

    Interactive Tool

    DSCR Calculator

    See if your investment property qualifies

    Property Details

    DSCR loans typically require 20-25% down
    %
    %

    Your DSCR Results

    DSCR Ratio

    1.13

    Qualified
    Loan Amount$300,000
    Monthly P&I$2,098
    Total PITIA$2,648
    Monthly Rent$3,000
    Est. Monthly Cash Flow+$352
    Check My Property Eligibility

    This calculator provides estimates only. Actual rates and terms may vary.

    Eligible Property Types

    DSCR loans work with most investment properties

    Single family rentals
    2-4 unit properties
    Condos (warrantable)
    Townhomes
    5-8 units (select lenders)
    Short-term rentals (select lenders)
    0

    DSCR Loan Requirements

    RequirementTypical Standard(This loan)
    Minimum DSCR1.0 (some allow 0.75)
    Down Payment20-25%
    Credit Score620+
    Property Types1-4 units, some 5-8
    Reserves Required3-6 months PITIA
    Income DocumentationNone required

    * Rates and terms subject to change. Contact us for current offers.

    FAQ

    Frequently Asked Questions

    Common questions about DSCR Loan (Investor Mortgage)

    Last updated: May 12, 2026

    What is DSCR and how is it calculated?

    DSCR (Debt Service Coverage Ratio) is calculated by dividing the property's monthly rental income by the total monthly payment (Principal, Interest, Taxes, Insurance, and Association fees). A DSCR of 1.0 or higher means the rent covers the payment, qualifying you for the loan.

    Can I get a DSCR loan with no income verification?

    Yes! That's the main benefit of DSCR loans. No tax returns, pay stubs, or W-2s are required. The property's rental income is the only income that matters for qualification.

    What DSCR ratio do I need to qualify?

    Most lenders require a minimum DSCR of 1.0, meaning the rent equals or exceeds the payment. Some lenders offer programs with DSCR as low as 0.75 for strong borrowers.

    Yes! DSCR loans are LLC-friendly. You can close in your personal name or an LLC for asset protection. This is a major advantage for real estate investors.
    No limit! Unlike conventional loans (often capped at 10 financed properties), DSCR loans have no property limit. Scale your portfolio as fast as you want.
    Single family rentals, 2-4 unit properties, warrantable condos, townhomes, and some lenders even allow 5-8 unit properties and short-term rentals like Airbnb.
    Compare all loan types — Read our comprehensive mortgage guide
    Read the Compare GuideSee how DSCR Loan (Investor Mortgage) stacks up against other mortgage options
    Compare All Programs Side-by-SideDrop DSCR Loan (Investor Mortgage) next to up to 2 others and compare requirements line by line

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    Get Started with DSCR Loan (Investor Mortgage) See Today's Rates
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    See If Your Property Qualifies

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    Check My PropertyTalk to an Investor Specialist

    Or call us directly: (757) 558-2603

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