Need a rental loan without W-2s or tax returns? Welcome to the world of DSCR loans—a favorite tool among real estate investors who want speed, flexibility, and cash-flow-first financing.
Whether you're growing your first portfolio or scaling your 15th door, Debt Service Coverage Ratio (DSCR) loans allow you to qualify based on the income of the property, not your personal income.
This cheat sheet breaks down everything you need to know about DSCR loans—fast.
🧠 What Is a DSCR Loan?
A DSCR loan is a type of real estate investment financing that approves borrowers based on the property’s ability to pay for itself.
No personal income docs. No DTI ratios. Just the deal.
DSCR Formula:
DSCR = Net Operating Income (NOI) ÷ Annual Debt Service
Example:
- NOI: $48,000/year
- Mortgage Payment: $40,000/year
- DSCR = 1.20 → You qualify!
Most lenders require a minimum DSCR of 1.20–1.25.
