Qualify Based on Property Cash Flow — Not Personal Income.
DSCR loans are designed for real estate investors who want to finance income-producing properties using the property’s rental cash flow instead of personal income, employment, or tax returns.
No personal income verification • Investor-focused • Scalable financing
A DSCR loan (Debt Service Coverage Ratio loan) is a business-purpose mortgage that qualifies borrowers based on the property’s ability to cover its own debt.
Instead of reviewing your W-2s, tax returns, or job history, lenders evaluate whether the rental income is sufficient to cover the mortgage payment.
In simple terms:
👉 The property qualifies — not the borrower’s personal income.
DSCR Formula
DSCR = Net Operating Income (NOI) ÷ Annual Debt Service
NOI: Gross rental income minus operating expenses
Annual Debt: Total yearly loan payments
Most lenders look for a DSCR of 1.00 to 1.25 or higher, depending on:
Some programs allow lower DSCR ratios with compensating factors such as higher down payment or reserves.
Let’s say a property has:
DSCR = 48,000 ÷ 42,000 = 1.14
A DSCR above 1.00 means the property generates enough income to cover the debt. Higher ratios typically result in better pricing and approval terms.
Single-family homes must be used strictly as investment properties.
30-year fixed-rate options
Adjustable-rate mortgages (5/6, 7/6 ARM)
Interest-only (IO) options
Fully amortizing loans
If the DSCR does not initially meet lender guidelines, possible strategies include:
Each scenario is reviewed individually to find the most viable structure.
DSCR loans are built for investors focused on cash-flow performance, not traditional income documentation. At Loans by Kelly, we specialize in structuring investor-friendly financing for both single-asset and portfolio borrowers.
We work with multiple DSCR lenders to match your property, rental strategy, and long-term goals.
Service available in English, Portuguese, and Spanish.
3 Simple Steps to Get Pre-Approved with Confidence
We begin with a quick conversation to understand your goals, review your financial situation, and identify the best loan options for you.
We match you with the right loan option, whether you’re a first-time homebuyer, investor, self-employed borrower, or using alternative documentation.
Submit your application and receive a fast, no-obligation pre-approval, so you can move forward with confidence.
