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DSCR Loans for Rental Property

Get an investment property loan approved on the property's cash flow — not your personal income. Compare DSCR loan offers from multiple lenders.

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What Is It
What is a DSCR loan?

A DSCR (debt service coverage ratio) loan is a rental property loan underwritten on the property's income rather than your personal income. Lenders calculate the ratio of the property's rental income to its debt payments — if it covers the payment, you qualify.

DSCR loans are popular with real estate investors who have strong cash-flowing rentals but don't want to document personal W-2 or tax income. Through BidMyCapital you can compare DSCR financing offers from multiple lenders.

How It Works
How DSCR financing works
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Rate the property's income

Lenders use projected rental income to assess coverage.

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Calculate the DSCR

Rental income divided by debt payment — 1.0 or higher is the target.

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Fund the investment

Approval is based on the property, not your personal tax returns.

Costs
DSCR loan rates and terms

Because they skip income documentation, DSCR loans carry a rate premium — typically 0.5% to 2% above conventional investor loans, depending on DSCR and LTV. Terms commonly run 30 years fixed or 5/6-month adjustable structures.

Eligibility
DSCR loan requirements

Rental property collateral

The loan is secured by the investment property itself.

DSCR of 1.0 or better

Rental income should at least cover the debt service.

Credit 620+ typical

Personal credit still matters, but income documentation does not.

Varying down payments

Rates and LTV depend on leverage, from 70% to 80% LTV typical.

Related
Related funding guides
FAQ
Frequently asked questions
What is a good DSCR?

A DSCR of 1.0 means the property's income exactly covers the debt payment. Most lenders prefer 1.1 to 1.25 to account for expenses, though 1.0 DSCR loans exist at lower loan-to-value.

Can I get a DSCR loan with no personal income?

Yes — that is the point. DSCR loans use the property's rental income instead of W-2s or tax returns, making them popular with investors and self-employed borrowers.

Do DSCR loans work for short-term rentals?

Many lenders now underwrite short-term and Airbnb-style rental income for DSCR qualification, often at slightly lower leverage.

How much do I need for a down payment?

Typically 20% to 30% down for investment DSCR loans, with better rates at higher equity.

Is a DSCR loan right for me?

If you own cash-flowing rental property and want approval without personal income documentation, a DSCR loan is built for you.

See what lenders will offer you

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