Loan Programs  |  08

DSCR Investor Loans

Qualify on the property's rent, not your tax returns.

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The quick version

How it works

A DSCR loan, short for Debt Service Coverage Ratio, is built for real estate investors. Instead of qualifying on your personal income and tax returns, the lender looks at whether the property's rent covers its mortgage payment, taxes, insurance, and HOA dues. That makes it a favorite for self-employed investors, people growing a portfolio, and anyone whose tax returns are full of write-offs. DSCR loans can close in an LLC, and many lenders allow short-term rentals. Expect a larger down payment and higher rates than an owner-occupied loan, plus prepayment terms worth reading closely.

Highlights

No personal income docs

The property's cash flow does the qualifying.

Close in an LLC

Keep your investments organized and separate.

Short-term rentals allowed

Many lenders accept vacation rental income.

Scale your portfolio

No cap tied to your personal debt-to-income ratio.

FAQ

Questions people actually ask

Tap a question to see the answer.

1How is DSCR calculated?+
Monthly rent divided by the monthly payment, including principal, interest, taxes, insurance, and HOA dues. A ratio of 1.0 means the rent exactly covers the payment, and higher ratios usually earn better pricing.
2Do I need to show tax returns or pay stubs?+
No. DSCR loans qualify on the property's income, not yours. You'll still need decent credit and reserves.
3Can I buy in an LLC?+
Yes. Most DSCR lenders allow closing in an LLC, usually with a personal guarantee.
4Can I use Airbnb or VRBO income?+
Many lenders accept short-term rental income, using rental history or market data. Requirements vary, so we match you with lenders who like vacation rentals.
5How much down payment do I need?+
More than an owner-occupied loan. The exact amount depends on your credit, the property, and the DSCR. We'll show you options from several lenders.
6Can I live in the property?+
No. DSCR loans are strictly for investment properties.
7Are there prepayment penalties?+
Often, yes. Many DSCR loans carry a prepayment penalty for the first few years, though shorter or no-penalty options are available at different pricing. We'll explain the trade-off before you choose.
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This information is general and educational. It is not a commitment to lend. Program guidelines vary by lender, change over time, and are subject to credit approval and underwriting.

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Plano Mortgage Broker

Mohave Mortgage

5830 Granite Pkwy # 100-213

Plano Texas, 75024

Office: (469) 414-5554

Branch NMLS # 2690682

Mohave Mortgage

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