Loan Program
Your Tenants Qualify for the Loan.
DSCR loans qualify the property, not you. No tax returns, no debt-to-income calculation, no cap on how many properties you own — just whether the rent covers the payment.
Investor & DSCR: What You Need to Know
Conventional financing caps you at ten financed properties and punishes you for the write-offs that make real estate worth owning. DSCR lending looks at one question: does the rent cover the payment? If the ratio works, the loan works — regardless of what your Schedule E says or how many doors you already own.
Who This Is For
- Investors who have hit conventional financing limits and need to keep buying
- Buyers whose tax returns show low income because of depreciation and legitimate write-offs
- Investors who want to vest title in an LLC for liability and estate planning reasons
- Short-term rental owners using projected or documented platform income
- Out-of-state and international investors buying into the Texas rental market
How It Works
Your Investor & DSCR Roadmap
No mystery steps, no waiting a week to hear back. Here is exactly how the process runs from first call to closing table.
- 1
Run the DSCR on your target property
We take market rent or an existing lease and divide it by the full monthly payment. A ratio of 1.0 means rent equals the payment; most programs want 1.0 to 1.25, and some allow below 1.0 with a larger down payment.
- 2
Structure the vesting and entity
If you are buying in an LLC, we confirm the operating agreement and organizational documents up front so title does not scramble at closing.
- 3
Credit, reserves, and terms
Credit score and reserves drive pricing and down payment. We confirm those and lock terms based on your target ratio and hold period.
- 4
Appraisal with rent schedule and close
The appraiser completes a market rent analysis alongside the valuation. That rent figure finalizes your DSCR, and we close — often in three to four weeks.
Key Benefits
Why Borrowers Choose This Program
No tax returns, no personal DTI
Qualification is based on the debt service coverage ratio: gross rent divided by principal, interest, taxes, insurance, and HOA. Your personal income never enters the calculation.
LLC vesting available
Title and the loan can be held in the name of your LLC, which conventional financing generally does not allow. That keeps your liability structure and your financing structure aligned.
No limit on financed properties
Conventional guidelines stop at ten financed properties. DSCR lenders do not impose that cap, which is what makes portfolio scaling possible past the first handful of doors.
Fast, document-light closings
Without tax returns and employment verification, the file is dramatically simpler. DSCR purchases regularly close in under 30 days, which matters when you are competing for a deal.
Run the Ratio
A Worked DSCR Example
The entire qualification decision comes down to one division problem. Here is what it looks like on a typical Central Texas rental.
$340,000 single-family rental · 25% down
- Loan amount
- $255,000
- Principal and interest
- $1,690 / month
- Property taxes
- $595 / month
- Insurance
- $145 / month
- HOA dues
- $40 / month
- Total monthly payment (PITIA)
- $2,470 / month
- Market rent from appraisal
- $2,850 / month
- DSCR
- 1.15
A 1.15 ratio clears most program thresholds comfortably. Figures are illustrative only — actual taxes, insurance, rents, and payment will vary by property and are subject to underwriting.
DSCR vs. Conventional Investment
Two Very Different Underwriting Philosophies
| Factor | DSCR Loan | Conventional Investment Loan |
|---|---|---|
| Income documentation | None — property rent only | Tax returns, W-2s, and pay stubs |
| Personal debt-to-income | Not calculated | Calculated and capped |
| Financed property limit | Generally none | Ten financed properties |
| Vesting | Individual or LLC | Individual only in most cases |
| Typical down payment | 20%–25% | 15%–25% |
| Typical pricing | Above conventional | Lowest available for investment property |
| Typical closing time | 21–30 days | 30 days |
At a Glance
The Numbers, Plainly
Guidelines shown are general and current as of publication. Program availability varies by state, property, and borrower eligibility, and all loans are subject to full underwriting approval.
- Minimum down payment
- Typically 20%–25%
- Typical credit score
- 660 minimum; best pricing at 720+
- DSCR required
- 1.0–1.25 standard; sub-1.0 options with more down
- Income documentation
- None — no tax returns, no W-2, no DTI
- Vesting
- Individual or LLC
- Property types
- 1–4 units, condos, and some short-term rentals
Myths & Misconceptions
Things People Believe That Cost Them Money
DSCR loans have terrible rates.
They price above conventional investment property loans, but the gap is narrower than most investors expect — and it is often outweighed by not being capped at ten properties or forced to show income you legitimately wrote off.
You need a signed lease to qualify.
A lease helps, but the appraiser’s market rent analysis can establish the income on a vacant property. That is how investors buy, renovate, and lease afterward.
DSCR is only for experienced investors.
Many programs accept first-time investors, though a few price better with documented experience. If this is your first rental, it is still a viable path.
Client Experience
“We thought we could not qualify because we were self-employed. Jason found a solution and got us into our dream home.”
Real Estate Investor
Austin, TX
Testimonials reflect individual experiences. Results vary and are not a guarantee of future outcomes.
Not sure this is your program?
That is what the free strategy call is for. Twenty minutes, no obligation, and you leave knowing which financing path actually fits your situation.
Book a Free Strategy CallQuestions
Investor & DSCR FAQs
Gross monthly rent divided by the total monthly payment including principal, interest, taxes, insurance, and HOA dues. If rent is $2,400 and the payment is $2,000, your DSCR is 1.20. Most programs want 1.0 or better, and stronger ratios improve pricing.
Yes. DSCR loans routinely allow LLC vesting, which is one of the main reasons investors choose them over conventional financing. We just need your operating agreement, EIN, and certificate of formation.
Some programs allow it using documented platform revenue or a market short-term rent analysis. Guidelines vary by lender and by city ordinance, so we confirm both before you go under contract.
There is generally no cap on the number of financed properties, though individual lenders set exposure limits on how much they will lend to one borrower. Investors regularly build portfolios well past the conventional ten-property ceiling this way.
Some programs go below a 1.0 ratio with a larger down payment or higher reserves. We can also look at a shorter-term bridge while you stabilize the property, then refinance into permanent DSCR financing once rents support it.
Let’s Solve Your Mortgage Situation.
Apply online in about 12 minutes, or grab a free 20-minute strategy call. Either way, you’ll leave knowing more than you do right now.