DSCR Mortgage for Real Estate Investors

DSCR Mortgage for Real Estate Investors. Invest in Rental Properties Without Income Documents.

If you’re a real estate investor looking for a simplified way to qualify for a mortgage on a rental property, without the need to verify your personal income, then a Debt Service Coverage Ratio loan may be the perfect solution.

Instead of relying on your job or tax returns, DSCR loans use the property’s cash flow to qualify. It’s a game-changer for new and seasoned investors alike.

What Is a DSCR Loan?

A DSCR loan is a mortgage designed for purchasing or refinancing short-term and long-term rental properties. These loans are qualified based on a property’s rental income rather than the borrower’s income or employment.

No W-2s, No paystubs, No tax returns.

Who Is It For?

Real estate investors.
Short-term rental property owners, like Airbnb.
Buyers using LLCs or investment entities.
Borrowers with multiple financed properties.
Foreign nationals and non-permanent residents.

How Is DSCR Calculated?

DSCR equals Rent divided by total mortgage payment, including property taxes, homeowners insurance, and any HOA fees.

Features:

Max Loan Up to $3 million.
Minimum Loan $100,000.
Loan Types: Purchase, Cash-Out, or Rate-Term Refi.
Property Types: Short-term & long-term rentals.

Credit Requirements:

Up to 75% LTV requires 680 or higher.
Up to 85% LTV requires 720 or higher.

Documentation:

No income or employment required.
Ownership Type: LLC, S Corp, C Corp, Revocable Trusts.
Foreign Nationals: Allowed.
First-Time Home Buyer: Not Allowed.
Interest-Only Option: Available.
Seller Concessions: Up to 6% of the sales price.
DSCR Program Advantages:
AirDNA Reports accepted for short-term rentals.
No cap on total financed properties.
Max 5 loans with the lender Angel Oak (exceptions considered).
Non-warrantable condos and condo hotels allowed.
Gift money accepted.
Investment properties require borrower to have 10% down payment of their own funds plus 3 months of the total monthly payment in cash reserves of their own funds. Then the rest can be gift money.

Invest Smarter with a DSCR Loan:

Whether you’re buying your first investment property or expanding your rental portfolio, a DSCR loan gives you the flexibility to qualify using the income that matters: your rental cash flow.