DSCR Loans for Real Estate Investors
Qualify using rental income — not personal tax returns.
DSCR loans allow real estate investors to purchase or refinance investment properties based on property cash flow.
Get Pre-Qualified for a DSCR Loan Today
If your property cash flows, we can structure it.
What Is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is a mortgage designed for investment properties.
Instead of qualifying based on personal income, approval is based on the property’s ability to generate enough rental income to cover the mortgage payment.
DSCR Formula: DSCR = Gross Rental Income ÷ PITIA
DSCR Loan Highlights
- Minimum credit score: 620
- Down payment starting at 20%
- 30% for Foreign Nationals
- Minimum loan amount: $100,000
DSCR Loan Requirements
DSCR loans shift the focus from “Do I qualify?” to “Does the deal make sense?”
Down Payment
20% – Citizens, Green Card, Work Permit. 25% – ITIN borrowers. 30% – Foreign Nationals. 30% – First-time investors.
Good DSCR Ratio
1.00 = Break-even. 1.10 – 1.24 = Moderate strength. 1.25+ = Strong investment.
Eligible Property Types
Single Family Residence (SFR). Condo. Townhouse- 2–4 Unit properties. Short-term rentals (in eligible areas).
Income Documentation
Property rental income- Appraisal rent schedule (Form 1007 or equivalent). Lease agreement (if applicable).
Why Choose USA Loans for DSCR Financing?
One of the biggest advantages of a conventional loan is flexibility in down payment structure.
- Specialized in investor loans
- Experience structuring LLC purchases
- Competitive investor pricing
- Multi-state licensing
- Clear underwriting guidance
DSCR Loan FAQs
Common questions about DSCR Loans
Do I need tax returns?
No. DSCR loans are based on property income.
Can I use Airbnb income?
Yes, in most eligible areas.