A DSCR loan qualifies on the property, not on you. DSCR stands for Debt Service Coverage Ratio — the rent the property brings in, divided by the mortgage payment it has to cover. If the rent covers the payment with room to spare, the file works.
Because the calculation is about the property, these loans generally skip tax returns, W-2s, pay stubs and employment verification altogether. That makes them a common choice for self-employed investors, for borrowers whose returns show heavy depreciation, and for anyone building a portfolio past the point where conventional financing stops counting the rent.
DSCR loans are used for single-family rentals, small multifamily, condos and short-term rental property, and can usually be held in an LLC. Send us the address and the market rent and we'll run the ratio.
