Long-term & DSCR
DSCR loans that qualify on the property, not your tax returns.
Long-term rental financing underwritten to the property’s income. Buy, refinance or pull cash out of rentals in your name or an LLC, and move out of short-term hard money into 30-year debt.
What a DSCR loan is
A DSCR (debt service coverage ratio) loan is a long-term mortgage for investment property. Instead of verifying your personal income, the lender checks whether the property’s rent covers its monthly payment. That makes it a fit for self-employed investors, growing portfolios and anyone whose tax returns do not show their real cash flow.
Who it is for
- Investors buying one- to four-unit rentals
- Flippers who decide to hold and need to refinance out of hard money
- BRRRR investors pulling cash out to fund the next deal
- Short-term rental owners, depending on the program
- Borrowers who want to close in an LLC
Loan programs
- Purchase: buy a rental with long-term fixed or adjustable financing.
- Rate-and-term refinance: replace existing debt with better terms.
- Cash-out refinance: pull equity out for your next acquisition.
- Interest-only options: lower payments that can improve DSCR.
- Portfolio loans: finance multiple rentals together.
How you qualify
Lenders look at the property’s DSCR, your credit, your down payment or equity and your reserves. Many look for a ratio of 1.0 to 1.25 or higher, with better pricing for stronger coverage. Read the full DSCR loan requirements or learn how to calculate DSCR.
How it works
- Send the property address, rent and loan request.
- A broker reviews it within one business day and matches lenders.
- You compare term sheets and choose one.
- The appraisal confirms value and market rent, and you close.
DSCR Loans guides
Frequently asked questions
What is a DSCR loan?
A DSCR loan is a long-term investment property mortgage that qualifies based on the property’s rental income compared to its monthly payment, instead of the borrower’s personal income.
What DSCR do I need?
Many lenders look for a debt service coverage ratio of 1.0 to 1.25 or higher. Some programs accept lower ratios with a larger down payment.
Can I close a DSCR loan in an LLC?
Yes. Most DSCR programs allow closing in an LLC or other business entity, usually with a personal guarantee.
Do DSCR loans require tax returns?
Typically no. DSCR loans qualify on the property’s income, so personal tax returns and pay stubs are not usually required.
Can I refinance out of a hard money loan with a DSCR loan?
Yes. Refinancing a renovated, rented property from hard money into a DSCR loan is common. Lenders may have seasoning rules for cash-out refinances.
Related financing
Terms, leverage and timelines vary by lender, property and borrower qualifications. Not a commitment to lend.