DSCR Purchase Loans
Investment Property Financing in 39 States and Washington, D.C.
About DSCR Purchase Loans
A Debt Service Coverage Ratio (DSCR) loan is designed for real estate investors who want to qualify based on their property’s income potential rather than their personal financials. Lenders evaluate the property’s cash flow to ensure it covers loan payments—making it ideal for rental and investment properties.
These loans remove the need for W-2s, pay stubs, or tax returns, offering flexibility for investors, entrepreneurs, and self-employed borrowers. Whether you’re expanding your portfolio or refinancing to free up capital, DSCR loans simplify financing for income-producing properties.
At Select Home Loans, we arrange DSCR purchase financing through our wholesale lending partners for eligible investment properties in 39 states and Washington, D.C., subject to lender and program approval.
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Why choose Select Home Loans?
- Diverse mortgage options: Conventional, FHA, VA, Reverse Mortgages, Jumbo, Non-QM Loans, HELOC, Second Mortgages, and DSCR Loans.
- Trusted reputation: A+ Rated and accredited by the Better Business Bureau.
- Customized service: Solutions crafted to meet your specific requirements.
- Established credibility: A reputation built on trust and experience.
DSCR Loans for Real Estate Investors
Whether you’re purchasing your first rental or adding to an established portfolio, we’ll help you explore financing for the property you have in mind. Options may include single-family homes, townhomes, condos, rural properties, multi-unit properties, and small portfolios, with programs for both short-term and long-term rentals.
Rental income may be evaluated using an existing lease, an appraiser’s market-rent estimate, or an approved short-term rental analysis, depending on the program. If you prefer to own the property through an LLC, eligible loans may close in an existing or newly formed entity.
We’ll walk you through the documentation, property review, and available loan structures, answer your questions, and keep you informed as your financing moves toward closing.
Frequently Asked Questions
What DSCR ratio do I need to qualify?
Many programs accept a DSCR of 1.0, meaning qualifying rental income equals the property’s qualifying monthly mortgage payment. Ratios of 1.25 or higher may offer more favorable pricing. We also have options for ratios as low as 0.5, which may require higher rates and a larger down payment or more equity. We’ll help you explore programs based on your property, credit, and reserves.
Can I close in an LLC?
Yes, eligible DSCR loans may close in an existing or newly formed LLC. We’ll walk you through the entity documents and requirements for your selected program so you know what to expect.
How is rental income calculated?
Lenders may use an existing lease, an appraiser’s market-rent estimate, or an approved short-term rental analysis, depending on the program. We’ll help you understand how your property’s rental income is evaluated and what documentation you’ll need.
What's the minimum down payment on a DSCR loan?
Many purchase programs start at 20% down, with options as low as 15% for qualifying borrowers and properties. For refinancing, select programs may allow borrowing up to 75–80% of the property’s value. Limits differ for rate-and-term and cash-out refinances. We’ll help you compare options based on your credit, rental income, and available equity.
Can I get a DSCR loan on a rural property?
Yes, we offer DSCR financing options for eligible rural investment properties with up to 20 acres. We’ll review the property’s location, rental potential, and comparable properties to help you explore available programs.
Which states do you offer DSCR loans in?
We arrange business-purpose DSCR financing for eligible investment properties across 39 states.
Our current coverage excludes Arizona, California, Idaho, Michigan, Minnesota, Nevada, North Dakota, Oregon, South Dakota, Utah, and Vermont.
Have a property in mind? Contact us and we’ll help confirm available programs for its location.