Start with market rent
The lender looks at the monthly rent the property can reasonably produce, supported by the appraisal and available rent evidence.
The investor loan guide
DSCR Loans
Financing for an investment property that's decided by the property's rental income versus its mortgage payment, not by the borrower's personal income.
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Get Pre-QualifiedSee how DSCR loans work
Pre-qualification is a preliminary inquiry only — it is not an approval, pre-approval, rate quote or commitment to lend.
Built around the asset
Start with the property. Understand the path.
The short version
DSCR loans, in plain English.
DSCR stands for debt-service coverage ratio. It is a way to compare the income a property is expected to produce with the monthly debt payment it would carry. A higher ratio generally means more room between rent and the payment.
Because the property’s income is central, W-2s, pay stubs, and personal tax returns typically are not the deciding factor in the same way they are with conventional financing. The borrower, property, leverage, credit, reserves, and program guidelines still come into view.
This approach is built for real estate investors, from someone buying a first rental to an operator financing a multifamily building. DSCR Doctors works across both residential and commercial investment property.
The core calculation
How a DSCR loan works.
The math is simple. The right loan structure depends on the full property and borrower story around it.
Estimate the payment
Next comes the monthly debt payment the proposed loan would create, along with other property costs that may be part of the review.
Divide rent by payment
DSCR is rent ÷ payment. Many lenders use roughly 1.20 and up as a rule of thumb, though programs vary by deal.
Set the loan amount
That ratio works alongside the appraisal and LTV to shape the loan amount, equity, and terms available for the property.
Choose your next step
Start here: pick your path.
The right page depends on the property, market, ownership structure, and stage of your deal. Use these guides to get specific, then bring the numbers to a quote conversation.
DSCR loans in Texas
Finance Texas investment properties with a statewide investor-loan team.
Explore this pathDSCR loans in Dallas
Get local context for Dallas–Fort Worth properties from a Dallas-based lender.
Explore this pathResidential DSCR loans
Explore financing for 1–4 unit rentals, duplexes, and small multifamily.
Explore this pathCommercial DSCR loans
Look at 5+ unit multifamily, retail, office, and mixed-use properties.
Explore this pathMultifamily DSCR loans
Learn how apartment buildings are sized around net operating income.
Explore this pathNo income verification
See how property income can lead the review and what still matters.
Explore this pathDSCR loans for LLCs
Understand entity borrowing and the documents lenders typically request.
Explore this pathDSCR refinance
Review rate-and-term and cash-out options for an investment property.
Explore this path75% LTV DSCR loans
See how higher leverage works and what can move your LTV.
Explore this pathFirst-time investors
Start your first rental purchase with the property’s numbers in view.
Explore this pathHow it works
Walk through the process and try the working DSCR calculator.
Explore this pathDSCR loan calculator
Run the rent-versus-payment math before you commit to a deal.
Explore this pathTwo sides of investor lending
Residential and commercial DSCR loans.
Residential DSCR
1–4 unit rentals
For single-family homes, condos, townhomes, duplexes, triplexes, and fourplexes where the property’s rent is central to the financing conversation.
Explore residential DSCR loansCommercial DSCR
5+ units and commercial
For larger multifamily, mixed-use, retail, office, and other income-producing properties where leases and operating performance matter more.
Explore commercial DSCR loansDSCR Doctors specializes in both sides of the business, so the property type can lead the conversation from the start.
The full review
What lenders look at.
Property income starts the conversation, but a responsible loan review connects the income to the value, condition, leverage, and borrower behind the deal.
Rent and DSCR
The property’s market rent and the ratio it produces help show whether income covers the debt.
Appraisal and condition
An appraisal supports value, rent, and condition. Repairs or deferred maintenance can affect the review.
LTV and down payment
Loan-to-value connects the loan amount to the property value, so leverage and cash invested move together.
Credit profile
Credit history and score are still part of the borrower review, even when personal income is not the main test.
Cash reserves
Lenders may want funds set aside for payments, closing, and the normal surprises of owning a rental.
Entity structure
When an LLC holds the property, expect formation, ownership, authorization, and guarantor information to be reviewed.
Why investors choose the model
Why investors use DSCR loans.
Personal income verification is often not the primary qualification test.
Qualification can center on the asset instead of W-2s, pay stubs, and tax returns.
Borrow through an LLC
An entity can fit the way you organize ownership, subject to lender and guarantor requirements.
Finance outside the conventional box
Property-income-based programs may fit rentals or borrower profiles conventional loans do not.
Grow beyond loan-count limits
Keep building a portfolio without relying only on conventional personal-income calculations.
Fewer documents, faster start
Begin with the deal and the property numbers rather than a large personal-income file.
Terms tied to performance
Well-performing properties can support the conversation, while leverage, credit, and reserves still shape terms.
From quote to closing
How it works.
Tell us about the property
Share the address, rent, value, and what you want to do.
Get a quote and terms
We outline a likely structure, costs, and next steps.
Appraisal and underwriting
The property and supporting documents move through review.
Close and fund
You sign the final documents and the loan funds at closing.
Questions, answered
DSCR loan FAQ.
What is a DSCR loan?
A DSCR loan is financing for an investment property that looks at the property’s rental income against its debt payment. DSCR stands for debt-service coverage ratio. The property’s income story is central, while credit, value, leverage, reserves, and program rules still matter.
Do I need to show my personal income?
Often, personal income is not the main qualification test, so W-2s, pay stubs, and tax returns may not be required in the same way they are for a conventional loan. Lenders still review the borrower, the property, the entity, reserves, and other requested documentation. The exact file depends on the program and the deal.
What DSCR ratio do lenders look for?
As a rule of thumb, many DSCR lenders look for roughly 1.20 or higher, meaning the property’s rent is greater than its monthly debt payment. Some programs may consider a lower ratio with different leverage, pricing, reserves, or other conditions. The target is a guideline, not a guarantee of approval.
How much do I need to put down?
The down payment depends on property type, loan purpose, credit, DSCR, appraisal, and the program available for the deal. Many investors think in terms of loan-to-value: a 75% LTV structure, for example, implies 25% equity before closing costs and other adjustments. Your quote should show the actual leverage and cash needed.
What’s the difference between residential and commercial DSCR loans?
Residential DSCR loans commonly cover 1–4 unit rentals, where market rent and the property’s value drive the review. Commercial DSCR loans generally cover 5+ unit multifamily, mixed-use, retail, office, and other larger income-producing properties, so leases, operating income, and property performance receive more attention.
How long does a DSCR loan take to close?
A straightforward residential file may take roughly three to six weeks once the application, appraisal, and documents are moving. Commercial properties, unusual income, title questions, or a slower appraisal can take longer. The timeline depends on the deal and how quickly the needed information comes together.
Ready to talk it through?
Get a quote on your deal.
Share the property and the numbers you know. We’ll help you understand the next step.