A DSCR loan qualifies primarily on the property rather than on your personal income documentation. 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, that is the core of the file, though credit, reserves and the property itself are still underwritten.
Because the calculation is built around the property, most DSCR programs do not require tax returns, W-2s or pay stubs to document personal income. 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. Which documentation a given lender still asks for — credit, reserves, entity paperwork, an appraisal with a market-rent schedule — varies by program.
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.
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