Qualify through the property's rental cash flow.
Qualification may be based on the property's rental cash flow rather than the borrower's personal income, depending on the selected lender program. Personal income documentation may not be required under eligible programs.
Investors who qualify on portfolios, not pay stubs.
The math is simpler
than you think.
DSCR stands for Debt Service Coverage Ratio — the relationship between a property's rental income and its monthly debt obligations (principal, interest, taxes, insurance, and HOA). The exact formula and acceptable rent documentation vary by lender.
For example, a property renting for $3,500/month against a $2,800/month total PITI payment would have a DSCR of 1.25. Eligible DSCR programs generally focus on this property-level cash flow rather than the borrower's personal employment income, tax returns, or W-2s for income qualification, although other borrower and entity documents are still required.
Alex is a real estate investor himself and understands how to evaluate DSCR loans within a broader portfolio strategy — including considerations for preserving conventional loan capacity for primary residence purchases, and whether to vest in an LLC or personally, subject to the selected lender's guidelines.
Property identification
Have a property in mind or under contract. We'll run a preliminary DSCR analysis to help assess eligibility before you commit.
Rental income documentation
Existing lease agreement or appraiser's market rent schedule (Form 1007). Personal income documentation may not be required for qualification under eligible programs.
Credit and entity review
Personal credit is generally reviewed. If purchasing in an LLC, entity documents are reviewed and a personal guaranty may be required.
DSCR analysis and program fit
Alex calculates DSCR, discusses program fit, and presents potential loan options — rate, term, and cash flow impact.
Underwriting and closing
DSCR loans are generally evaluated separately from conventional loan limits, subject to the selected lender's guidelines on financed-property counts.
What properties qualify.
DSCR programs cover a wide range of income-producing property types — from single-family rentals to short-term rentals and small multifamily.
Single-Family Rental
1–4 unit properties rented on annual or long-term leases. The most common DSCR loan structure.
Short-Term Rentals
Airbnb, VRBO, and similar platforms. We use AirDNA market data or lease agreements to document income.
2–4 Unit Properties
Duplexes, triplexes, and quadplexes. All unit rents combined for DSCR calculation.
Condominiums
Warrantable and non-warrantable condos in eligible markets — including South Florida condo markets.
LLC Vesting
Purchase or refinance in the name of your LLC or entity. Personal guarantee typically required.
Cash-Out Refinance
Extract equity from existing investment properties to fund your next acquisition — personal income documentation may not be required under eligible DSCR programs.
Program DetailsWhat to expect.
Loan Amounts
- Loan amounts vary by lender and property cash flow
- Jumbo DSCR programs available
- Financed-property limits vary by lender
DSCR Ratio
- Most programs: 1.0 minimum (property covers its housing expense)
- Better rates generally available at higher ratios
- Some programs allow DSCR below 1.0 with compensating factors
Credit Requirements
- Credit score requirements vary by lender and program
- Personal employment and income documentation may not be required for qualification
- Entity (LLC) borrowers: personal credit generally used
Down Payment
- Down payment and LTV requirements vary by lender, loan size, and transaction type
- Reserves required, subject to lender guidelines
Income Documentation
- Existing lease or Form 1007 market rent
- Personal tax returns, W-2s, or pay stubs may not be required for income qualification
- STR income: appraisal rent schedule, lease history, or approved market-rent data
Loan Terms
- 30-year fixed, ARM options available
- Interest-only options on select programs
- Purchase, rate/term refi, cash-out refi
Program guidelines vary by lender and are subject to change. All loans subject to underwriting and lender approval. Not a commitment to lend.
Frequently Asked Questions
Have questions about this program?
Alex reviews every file personally. Schedule a call and get direct answers.
Run the numbers on
your next property.
Share the address and rent schedule. Alex will review your DSCR and discuss potential program fit based on applicable lender guidelines.