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DSCR Loans Guide
How to Qualify for DSCR Loan?


If you are looking to qualify for a real estate loan based on cash flow generated by your investment property and avoid providing employment information, tax returns, pay stubs, W2s, etc. Then Our DSCR Loan Program could be the best solution for you!

In this Guide, you will learn about

  • How Can You Qualify for a DSCR Loan? Step By Step Process

  • Who Offers DSCR Loans?

  • Things to Know About DSCR Loans

  • What are the Program Costs and Fees of DSCR?

  • What are the Benefits of a DSCR Loan?

  • Why Does DSCR Change Over Time?

  • DSCR Loan Refinance

  • DSCR Loan Cash-Out Refinance

  • Use Cases of DSCR Loans

1. DSCR Loan for Rental Property

2. DSCR Loan for Commercial Property

3. DSCR Loan for New Construction

4. DSCR Loan for Airbnb

5. DSCR Loan LLC

  • DSCR Loan for Foreigners

  • Find DSCR Lenders Near Me

  • 10 Best Places to Buy Rental Property with DSCR Loan

  • Frequently Asked Questions

What is Debt Service Coverage Ratio (DSCR)?

“DSCR, short for Debt Service Coverage Ratio, plays a crucial role in Real Estate Investing and building wealth with rental properties and passive income. The DSCR Ratio is a calculation private lenders use to assess whether a property generates sufficient income to meet its debt obligations or not. This financial metric is used by national private lenders to evaluate a loan applications or refinancing requests from real estate corporations and investors, ensuring that the property’s cash flow adequately covers the mortgage.”

Check your DSCR loan eligibility.

What is a DSCR Loan Program?

And How Do DSCR Investor Loans Work?

The DSCR loan is specifically tailored for real estate investors and corporations seeking a real estate loan for their investment property, a mortgage qualification based on the cash flow generated by the investment property. It offers a better alternative approach compared to traditional conventional loans that rely on proof of income, tax returns, employment information and income qualification.

With the DSCR Loan Program, Private lenders can assess a borrower’s investment property ability to repay the loan without requiring any income verification from the investor controlling the asset. This type of loan benefits real estate investors and corporations, especially those who can not meet the traditional mortgage income verification guidelines conventional loans require.


The DSCR loan streamlines the qualification process for real estate investors, real estate corporations, and real estate investment companies across the country serving the real estate investing industry like no other loan program has.

DSCR Loan: No Personal Income Required

DSCR = Debt Service Coverage Ratio 

A DSCR Loan is a Real Estate Investment/investor-focused loan program that enables real estate investors to qualify for property fiancing based on the rental income of the investment property rather than the personal income of the owners, grantors, or company members.

How Does the DSCR Loan Works? It is Rental Income vs Loan Payment

If the rental income is equal to or over the loan payment the loan the property qualifies.

If the rental income is below the loan payment the property will not qualify

How to turn a non-qualified property into a qualified one?

You can turn a non-qualified property into a qualified one by adjusting your down payment to get to the ratio required.

DSCR Loan Requirements

The DSCR Loan requirements are a combination of items needed from the investment property and the grantor of the loan.

To qualify for investment property financing based on the rental income of the property rather than the personal income of the owners, grantors, or company members the DSCR Loan requirements are

1. Grantor's Minimum Credit Score of 660

2. Down Payment or Equity of 20 to 25%

3. DSCR Ration of 1 or higher

How to Calculate the DSCR Ratio of Your Investment Property?

DSCR Ratio =        Net Operating Income     

                              Total Debt Service

DSCR Ratio = Gross Rental Income - Operating Expenses - Vacancy Loss

                                                 Total Debt Service (Total amount of debt payments)


      NOI      TOTAL DEBT       DSCR  

 $100,000       $80,000            1.25

For Whom is the DSCR Loan Perfect?

The DSCR loan is the best option for investors and real estate investing companies, who are not able to or do not want to provide personal income information, tax returns, pay stubs, W2s, etc. It’s ideal for self-employed borrowers with very complex incomes looking for an investment property, as it addresses the problem of having to deal with complex tax returns. It is also a great option for W2 income earners or those real estate investors who own several investment properties and have reached the traditional credit limit, and last DSCR loans are great for new real estate investing companies looking to start acquiring assets as well as seasoned companies that already own rental assets.

  • Investors who are not able or don’t wish to provide employment information (tax returns, payslips, W2, etc.)

  • Freelancers

  • Self-employed businessman

  • Real Estate investing Corporations

Check your DSCR loan eligibility.

How DSCR loans empower real estate investors to purchase their first rental property.
National Private Lending provides a much-needed solution to first-time real estate investors who desired to purchase a rental property but have found it difficult to secure traditional financing due to their limited income and or lack of experience in this field. Obtaining a DSCR loan is the suggested option to use the future rental income from the investment property as security for completing the financing requirements. Thanks to this new Loan Option, real estate investors not only can successfully buy a new investment that generates steady returns, but they also laid down strong foundations for expanding their real estate portfolio over time!

What is a Good DSCR Ratio?

Most DSCR lenders demand that their clients have a DSCR ratio of 1.  The average minimum for most lenders is 1.2 

A DSCR ratio of 1.00 indicates that the borrower will have sufficient cash flow from the subject property to pay off the loan. If the DSCR ratio is 1.25, the borrower can make loan payments with positive cash flow. A percentage of 1.50 would provide even more breathing room for the borrower and so on. Again, lenders typically require a minimum DSCR ratio of 1 to process your DSCR loan.

More coming soon...

What is DSCR
What is DSCR Loan Program
For Whom is DSCR
DSCR Loan No Income
DSCR Loan Requirements
DSCR Loan Credit Scores
How DSCR loans empower rei
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