DSCR Loans: Rental Property Financing Based on Cash Flow, Not Your Tax Returns
DSCR loans qualify you based on the property's rental income — not your personal income, W-2s, or tax returns. If the property cash-flows, you may qualify. PeerSense connects you with the right DSCR lender for your deal.
What Is Debt Service Coverage Ratio (DSCR) and How Does It Work?
DSCR stands for Debt Service Coverage Ratio. It's a simple calculation that compares the property's rental income to the mortgage payment (including principal, interest, taxes, insurance, and HOA fees).
If the property generates enough rent to cover the mortgage payment, you qualify. The lender doesn't care about your W-2, tax returns, or personal income — they care about the property's cash flow.
DSCR Calculation Example
Result: A DSCR of 1.25 means the property generates 25% more income than needed to cover the mortgage. Most lenders require a minimum DSCR of 1.0–1.25 to qualify.
No Income Documentation
No tax returns, no W-2s, no pay stubs, no employment verification. Qualification is based entirely on the property's rental income.
Foreign Nationals Eligible
No US credit history or Social Security Number required. Foreign nationals can qualify using passport and foreign bank statements.
1-4 Family Properties
Single-family homes, condos, townhomes, 2-4 unit multifamily properties. Investment properties only — not for owner-occupied residences.
DSCR Loan Details
Flexible terms designed for real estate investors who want to qualify based on property performance, not personal income
Loan Amount
Higher amounts available for strong DSCR ratios and experienced investors
Down Payment
Lower down payments available for DSCR ratios above 1.25
Term Length
Interest-only options available on select programs
Closing Timeline
Faster than conventional loans due to no income verification
Credit Score
Higher credit scores qualify for better rates
Property Types
Single-family, condo, townhome, 2-4 unit multifamily
Compliance Note
Subject to credit approval. Rates and terms vary by deal profile, credit score, DSCR ratio, and property type. PeerSense is an advisory firm and not a direct lender — we connect borrowers with capital sources that specialize in DSCR rental loans.
Property Types Covered
DSCR loans are available for 1-4 family investment properties. Owner-occupied residences do not qualify.
Single-Family Homes
Detached single-family residences used as rental properties
Condos & Townhomes
Condominiums and townhomes in warrantable projects
2-4 Unit Multifamily
Duplex, triplex, and fourplex investment properties
Investment Properties Only
DSCR loans are for investment properties only. If you plan to live in the property as your primary residence, you'll need a conventional owner-occupied mortgage instead. The property must be rented or available for rent to qualify.
Who Qualifies for DSCR Loans?
DSCR loans are designed for real estate investors who want to qualify based on property cash flow, not personal income
Self-Employed Investors
Business owners and self-employed individuals who don't want to provide tax returns or income documentation
Portfolio Investors
Investors with multiple rental properties who want to scale without income verification limits
Foreign Nationals
Non-US citizens investing in US rental properties without US credit history or Social Security Number
High-Income Earners
W-2 earners who prefer not to disclose personal income or want to separate personal and investment finances
1031 Exchange Buyers
Investors completing 1031 exchanges who need fast closings without income verification delays
Fix-and-Rent Investors
Investors purchasing properties to renovate and rent, qualifying based on projected rental income
Minimum Requirements
What You Don't Need
Frequently Asked Questions
Need DSCR Financing? Let's Talk.
PeerSense connects you with DSCR lenders who understand your deal. One conversation. Direct introduction.