DSCR Loans for Real Estate Investors
Across 39 states | Qualify based on your property’s rental income, not your personal income
Snapshot of Your DSCR Options
What Is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is designed for real estate investors who want to qualify based on a property’s income potential rather than personal financials. Lenders evaluate a property’s rental income relative to its mortgage obligations rather than using personal income, making DSCR loans ideal for rental and investment properties.
These loans remove the need for W-2s, pay stubs, or tax returns, offering flexibility for investors. 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 help you compare available DSCR options through our lending partners on eligible investment properties across 39 states. For a list of states we serve, see the FAQ below.
How Will You Use Your DSCR Loan?
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 for an investment property loan?
Many programs accept a Debt Service Coverage Ratio, or DSCR, of 1.0, meaning qualifying rental income equals the property’s qualifying monthly mortgage obligations. Ratios of 1.25 or higher may offer more favorable pricing. We also offer options for ratios as low as 0.5, which may involve higher rates and a larger down payment or more equity. Your credit, reserves, and property also help determine available options.
Can I get a DSCR loan 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 prepare.
How are rental income and DSCR calculated?
Depending on the program, lenders may use an existing lease, an appraiser’s market rent estimate, or an approved short term rental analysis to determine qualifying rental income. That income is divided by the property’s qualifying monthly mortgage obligations (principal, interest, property taxes, insurance, and applicable association fees) to calculate the debt service coverage ratio.
We’ll help you understand the numbers for your property.
What is the minimum down payment for a DSCR loan?
Many purchase programs start at 20% down, with options as low as 15% for qualifying borrowers and properties. The amount required depends on your credit, DSCR, property type, and loan amount.
For refinancing, many programs offer financing up to 75% of the property’s value, with select options up to 80% for qualifying borrowers and properties. Limits can differ between cash out and other refinances. We’ll help you compare your options.
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. The property’s residential use, rental income, location, and comparable properties are important parts of the review.
Have a property in mind? Send us the address, and we’ll help you explore available financing.
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.