Does Your Rental
Property Qualify?

A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that qualifies based on the property's rental income rather than your personal income. The lender divides the property's net operating income by the total monthly debt service to determine if the deal cash flows sufficiently — no W-2, tax returns, or employment verification required.

Most DSCR lenders require a minimum ratio of 1.01 — meaning the property's income must cover at least 101% of the total housing payment. A ratio of 1.25 or higher generally unlocks better pricing and terms. Some lenders offer programs below 1.0 for strong-credit borrowers, but options narrow and rates increase.

No. DSCR loans are specifically designed to bypass personal income documentation. You'll need a signed lease or a market rent analysis, standard property documentation, and to meet credit score and down payment requirements — but your W-2, tax returns, and employment history stay out of it entirely.

Single-family homes, 2–4 unit properties, condos, and townhomes qualify with most lenders. Short-term rentals (Airbnb, VRBO) are eligible using market rent analysis or actual platform income history. Commercial and 5+ unit properties follow a different underwriting path and are handled case by case.