If you're a real estate investor looking to grow your portfolio without the hassle of verifying personal income, you're in the right place. DSCR loans—short for Debt Service Coverage Ratio loans—offer a unique solution for investors who want to qualify for financing based on the income potential of the property itself rather than their own employment history, W-2s, or tax returns.
At EZDirectLoans, we specialize in helping investors like you secure flexible, competitive DSCR loan solutions tailored to your goals. Whether you're purchasing a single-family rental in Arizona or refinancing a 4-unit property in California, our DSCR programs are designed to keep your investment plans moving forward—with less red tape and more opportunity
A DSCR loan is a type of non-QM (non-qualified mortgage) loan designed for real estate investors. Rather than requiring proof of personal income, DSCR loans evaluate the property’s ability to generate rental income relative to its monthly debt obligations.
DSCR = Monthly Gross Rental Income / Monthly Mortgage Payment
A DSCR of 1.0 means the property makes exactly enough to cover the mortgage. A DSCR above 1.0 indicates positive cash flow, while anything below 1.0 typically signals a shortfall.
Most lenders prefer to see a DSCR of at least 1.00, but some of our programs accept ratios as low as 0.75 depending on the strength of the overall deal.
Traditional mortgages can be a headache for investors—especially those who are self-employed or expanding rapidly. DSCR loans remove many of those hurdles. Here’s why investors love them:
You won’t need to submit pay stubs, tax returns, or employment history. The loan is based primarily on the income potential of the property—not your personal finances.
DSCR loans are perfect for buy-and-hold investors looking to scale quickly. In many cases, you can close on multiple properties in a shorter time frame.
With fewer documents to verify and a simpler underwriting process, DSCR loans can close faster than conventional loans.
From single-family homes to 4- or even 8-unit multiplexes, DSCR loans work for a wide range of investment properties.
Enjoy 30-year fixed options, interest-only terms, and ARMs with competitive pricing—even with alternative income documentation.
You don’t need to be a full-time investor to qualify. If you own or plan to buy a rental property and the numbers make sense, you may be eligible. Here are the basic qualification guidelines we use:
Minimum FICO: 620 (some programs start at 660)
No recent bankruptcies or major credit events
Entity or individual borrower (LLCs welcome)
No income or job history required
1–8 unit residential properties
Condos, townhomes, and SFRs allowed
Properties must be rent-ready or leased
Short-term rental and Airbnb income may qualify
Loan amounts: $100,000 to $3M+
Max LTV: 80% for purchases, 75% for cash-out
Fixed and adjustable rates available
Interest-only options available
Let’s say you're purchasing a duplex listed at $500,000. With a 25% down payment, your mortgage (PITI) might come out to around $2,600/month.
If you can rent each unit for $1,500/month, your total monthly income is $3,000.
Your DSCR = $3,000 / $2,600 = 1.15
That’s a solid ratio—lenders would likely approve this deal, especially if your credit score and reserves are in good shape.
What if the property only rents for $2,000/month? Then your DSCR is 0.77. That’s below the typical cutoff, but not a deal-breaker. We work with lenders who accept DSCRs under 1.0 if the borrower’s profile and exit strategy are strong.
The best part about DSCR loans is they’re built with real investors in mind. Here’s what makes them a powerful tool for anyone serious about building long-term wealth through real estate:
Traditional loans slow you down by capping how many mortgages you can hold and requiring extensive income checks. DSCR loans remove those roadblocks so you can grow without artificial limits.
As long as your property cash flows, you’re in good shape. No need to explain your self-employed income or piece together multiple years of tax documents.
DSCR loans are available in multiple states, giving you the freedom to invest in high-growth cities or vacation rental markets—without being tied to your personal income or location.
Many of our lenders accept projected income from Airbnb and short-term rentals. If you can prove market demand and nightly rates, we’ll help you make the numbers work.
Investors use DSCR financing for a variety of strategies:
Rental property purchases
Rate-term or cash-out refinances
Delayed financing (refinance shortly after a cash purchase)
1031 Exchange acquisitions
Short-term rental acquisitions
We make the process straightforward. Here’s how to get started:
Request a Quote
Submit a quick online form or give us a call. We'll review your investment goals and property details.
Get Pre-Qualified
We’ll assess the DSCR ratio, pull a soft credit check, and provide loan terms based on your scenario.
Submit Documents
You’ll need a lease (or projected rents), a property appraisal, and entity docs if applying through an LLC.
If you’re buying or refinancing a rental property and want to leverage the asset’s income potential—not your own income—then yes, a DSCR loan might be your best option.
Even if you’ve been told "no" by traditional banks, we may be able to say “yes.” Our network of flexible DSCR lenders can help structure deals that work for you, not against you.
We’re here to help you unlock your next real estate opportunity with a smart, streamlined DSCR loan. Whether you’re a first-time investor or managing a growing portfolio, EZDirectLoans offers the experience, connections, and support to make your next deal a success.
Contact us today or apply online to see how much you can qualify for.
DSCR stands for Debt Service Coverage Ratio. It’s a way of measuring whether a property produces enough rental income to cover its monthly mortgage payment. For example, a DSCR of 1.25 means the property generates 25% more income than its monthly debt obligation.
It depends on the lender, but many programs accept DSCRs as low as 1.00, and some go down to 0.75 with compensating factors like strong credit, high reserves, or a large down payment. A DSCR above 1.25 typically qualifies for better terms and rates.
Yes—many of our DSCR lenders will accept market rent projections or actual income from platforms like Airbnb and Vrbo, especially if you can provide data from tools like AirDNA, a property manager statement, or a 12-month rental history.
No. That’s the biggest benefit of DSCR loans—you don’t need to verify W-2s, pay stubs, or tax returns. Instead, qualification is based on the income potential of the property itself.
Yes. Most DSCR loans allow for title to be held in an LLC or business entity, which offers liability protection and flexibility for investors building a real estate portfolio.
We typically recommend a minimum FICO score of 660, though some programs go as low as 620. The better your credit, the more favorable your loan terms will be.
DSCR loans are commonly used for:
Single-family rentals (SFRs)
Condos and townhomes
2–4 unit properties (and sometimes up to 8 units)
Short-term rentals (Airbnb/Vrbo)
Non-warrantable condos (in some cases)
Yes. Many investors use DSCR loans to pull equity from existing properties and reinvest it into new purchases. We can help structure a cash-out refi with up to 75% LTV depending on the property and market.
Most DSCR loans close within 2 to 4 weeks, depending on how quickly documents are provided. Because they don’t require income underwriting, they’re often faster than conventional loans.
The documentation process is much lighter than a traditional loan. You'll generally need:
A lease agreement or rental income estimate (like a 1007 rent schedule)
A property appraisal
LLC documents (if purchasing in an entity)
A credit report (soft or hard pull, depending on lender)
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 1784844
www.nmlsconsumeraccess.org
200 Spectrum Center Drive Suite 300
Irvine, California 92618
Phone: 866-266-6620
Text us at - (424) 232-0409
kevin@ezdirectloans.com
Powered By LenderHomePage.com