The property qualifies. Not you.
DSCR loans qualify the rental property on its own income. No tax returns. No W-2s. No explaining your financial life to a stranger.
Overview
DSCR stands for Debt Service Coverage Ratio. Rental income divided by the mortgage payment. If the property's rent covers the debt, you're in the conversation.
No personal income documentation. None. Not your tax returns, not your pay stubs, not your employer verification. The lender underwrites the property. That's it.
I work with investors buying their second property and investors buying their twentieth. Same attention, same process, same phone number. There's no limit on the number of properties you can finance with DSCR, which is the biggest structural advantage over conventional investor loans.
Key Details
How I Handle This
I calculate the DSCR using whatever income data fits the deal. Existing lease. Appraiser's rent schedule. Short-term rental projections with the appropriate haircut. Then I match the property to a lender whose guidelines fit that ratio and your credit profile.
If the ratio is tight, I know which lenders have flexibility and what compensating factors actually count. If you're buying your tenth property, I'm not slowing down or asking why. See scaling a rental portfolio for how I handle investors with multiple properties.
Questions I Get
What DSCR do I need?
Breakeven is the most common baseline. Stronger ratios move you into more favorable pricing tiers. Some lenders go below breakeven if your credit is strong and you bring more to the table.
Can I use DSCR for an Airbnb?
Yes. I use third-party rental projection data and the lender applies a haircut to the gross estimate. Short-term rental DSCR loans are common in the Austin market.
Can I close in my LLC?
Yes. Most DSCR lenders allow entity vesting at closing with a personal guarantee.
How does DSCR compare to conventional for investors?
DSCR: no tax returns, no property count limit, entity vesting allowed. Conventional: lower rate, but full income documentation required and a cap on financed properties. I tell you which makes sense for each deal.
Have a deal you want me to run?
Send me the address and the rent. I'll calculate the DSCR and tell you what the loan looks like.