DSCR Loans: No Income Verification Mortgage for Real Estate Investors
Invest in real estate with confidence. The Debt Service Coverage Ratio (DSCR) Loan allows investors to qualify based on the property’s cash flow—bypassing the need for personal tax returns, W-2s, or employment verification.
I. Understanding the DSCR Investor Advantage
Traditional mortgages are often restrictive for successful real estate investors who utilize complex tax strategies or who are self-employed. The DSCR mortgage program is a Non-QM solution specifically designed to put the focus on the asset's performance rather than the borrower's personal income.
The DSCR Formula
The core of the program lies in a simple calculation:
PITI includes Principal, Interest, Property Taxes, and Insurance.
Cash Flow Tiers
- DSCR ≥ 1.00: The property is cash-flow positive (rent covers 100%+ of the mortgage). Best rates available.
- DSCR < 1.00: Often called "No-Ratio" loans, allowing qualification with lower cash flow. Requires a higher down payment/LTV.
- DSCR = 0.00: Applicable for investors with high reserves, meaning no cash flow is needed, but typically requires 30–40% down.
II. Key Features: Why Investors Choose DSCR
No Income/DTI Check
No W-2s, tax returns, pay stubs, or personal Debt-to-Income (DTI) calculations are required for approval.
Qualify Based on Cash Flow
The property's estimated market rent is the primary qualification factor, making it ideal for self-employed borrowers.
Flexible Transaction Types
Available for Purchase, Rate-and-Term Refinance, and Cash-Out Refinance to pull equity for new deals.
Scalable Portfolio Growth
Rapidly expand your portfolio without personal DTI restrictions. Buy, refi, and repeat without the traditional paperwork.
III. Property and Borrower Requirements
Eligible Property Types
The DSCR program is strictly for non-owner-occupied, income-producing properties. Eligible property categories include:
- Single-Family Residences (SFR) and Townhomes
- 2- to 4-Unit Multi-Family Properties (Duplexes, Triplexes, Fourplexes)
- Condominiums (Non-warrantable condos may be considered)
- Short-Term Rentals (Airbnb/VRBO) using calculated short-term rental income data.
- Exclusion: Owner-occupied primary residences or true second/vacation homes do not qualify.
Key Borrower Requirements
While personal income is ignored, standard underwriting still applies to the borrower's stability:
Min. Credit Score
640
Min. Down Payment
20%
Required Reserves
6–12 Months PITI
Pre-Payment Penalty
Varies (Often None)
Ready to Scale Your Portfolio?
Whether you’re buying your first investment property or expanding a multi-property portfolio, the DSCR loan offers the streamlined process you need. Work with a lender who understands real estate investment strategies.
Get Qualified for a DSCR Loan Today
Contact Jason J. Sarji and the Team Today: 📞 888-601-8344 | 954-390-7994 | NMLS #374739.