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Residential Mortgage
DSCR Loans (Investors)
Debt Service Coverage Ratio loans for real estate investors. Qualification is based on the property's rental income rather than personal income, making it ideal for portfolio builders.
Is This Loan Right for You?
A DSCR loan is right for you if you are a real estate investor who wants to qualify based on the rental income of the property rather than your personal income. No tax returns or W-2s required, making it ideal for investors scaling their portfolios. The Debt Service Coverage Ratio is calculated by dividing the property's gross rental income by its total debt obligations including principal, interest, taxes, insurance, and HOA. Most programs require a DSCR of 1.0 or higher, with the best rates available at 1.25 and above. You will need a minimum 640 credit score, 20% down payment, and loan amounts can reach up to $5 million. Properties eligible include single-family homes, multi-family units, and short-term rentals like Airbnb. Unlike conventional investment loans limited to 10 financed properties, DSCR loans have no portfolio limit. Choose DSCR if you want to scale your real estate portfolio without personal income limitations or DTI constraints.
Side-by-Side
DSCR vs Conventional vs Hard Money
DSCR loans let investors qualify on property income alone — no tax returns, no W-2s, no personal DTI limits.
| Feature | DSCR Loan | Conventional | Hard Money |
|---|---|---|---|
| Income Verification | Not required (property income only) | Full documentation (W-2, tax returns) | Not required (asset-based) |
| Min DSCR Ratio | 1.0 (1.25+ for best rates) | N/A | N/A |
| Credit Score | 640+ | 620+ | 600+ |
| Down Payment | 20-25% | 3-20% | 15-25% |
| Loan Terms | 30-year fixed or ARM | 15 or 30-year | 6-24 months |
| Property Types | SFR, multi-family, short-term rentals | Primary, secondary, investment | Investment only |
| Closing Speed | 21-30 days | 30-45 days | 7-10 days |
How to Buy Rental Properties Without Using Your Tax Returns (DSCR Loans)
Requirements
What Are the DSCR Requirements?
Min Credit Score
640+
Min Down Payment
20%
Max LTV
80%
Max DTI
N/A (based on property DSCR, not personal DTI)
Loan Limits
Up to $5 million depending on program
PMI / MIP
No PMI; rate reflects investment property risk
Occupancy
Investment property only (non-owner-occupied)
Features
Key Features
- Qualification based on property income, not personal income
- No personal income verification or tax returns required
- DSCR = Property Income / Debt Obligations
- Ideal for investors with multiple properties
- Available for single-family, multi-family, and short-term rentals
Process
How It Works
1
Property Analysis
We evaluate the investment property's rental income potential, calculate the DSCR ratio, and determine the optimal loan structure for your investment goals.
2
Application & Documentation
Submit your application with property details, rent rolls or lease agreements, and property financials. No personal tax returns or W-2s needed.
3
Underwriting & Appraisal
The underwriter reviews the property appraisal (including rent schedule), verifies rental income, and confirms the DSCR meets program requirements.
4
Closing & Funding
Sign closing documents, fund your down payment, and begin collecting rental income on your new investment property.
Estimate Your Payment
20%
Results
Principal & Interest$2,128.97
Property Tax$416.67
Insurance$150
Total Monthly Payment$2,695.64
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
Pros & Cons
What Are the Pros and Cons of DSCR?
Advantages
- No personal income verification, tax returns, or employment history required
- Scale your portfolio without personal DTI limitations
- Close in an LLC or business entity for asset protection
- Available for short-term rentals (Airbnb/VRBO) with documented income
Considerations
- Higher interest rates than owner-occupied conventional loans (typically 1-2% higher)
- Larger down payment required (usually 20-25%)
- Property must demonstrate sufficient rental income to cover the mortgage
FAQ
Frequently Asked Questions
DSCR stands for Debt Service Coverage Ratio. It is calculated by dividing the property's gross rental income by its total debt obligations (mortgage payment including principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means rental income exactly covers the mortgage. Most lenders require 1.0-1.25.
Yes. Many DSCR programs accept short-term rental income. Lenders may use AirDNA projections, actual booking history, or a 1007 rent schedule to determine rental income for Airbnb and VRBO properties.
Yes. DSCR loans commonly allow closing in an LLC, corporation, or other business entity. This provides liability protection and separates the investment from your personal assets.
There is no standard limit on the number of DSCR loans you can hold. Since qualification is property-based rather than personal-income-based, investors can scale their portfolios without the conventional limit of 10 financed properties.
Most programs require a minimum DSCR of 1.0 (break-even). Some lenders offer programs with DSCR as low as 0.75 with compensating factors like a larger down payment or higher credit score. A DSCR of 1.25+ will get you the best rates.
Local Expertise
Getting a DSCR Loan in the San Gabriel Valley
NetCORE Lending™ is headquartered in Diamond Bar and has been helping borrowers across the San Gabriel Valley secure dscr financing since 2015. We serve homebuyers and homeowners in Pomona, Walnut, Rowland Heights, West Covina, Chino Hills, Covina, La Verne, Glendora, San Dimas, Hacienda Heights, and City of Industry — as well as borrowers throughout California.
As a local mortgage broker, we understand the San Gabriel Valley real estate market — from the higher-value properties in Chino Hills and Diamond Bar to the more affordable options in Pomona and West Covina. Our team provides bilingual service in English and Vietnamese and shops 100+ wholesale lenders to find you the lowest available rate on your dscr loan.
Call (714) 399-6361 to discuss dscr options with a local loan advisor, or get pre-qualified online in 2 minutes.
Related
Also Consider
Explore other loan products that might be a good fit for your needs.
Hard Money
Short-term asset-based financing for real estate investors. Ideal for fix-and-flip projects, bridge loans, short-term rentals, and ground-up construction with fast funding.
Construction
Financing for building a new home from the ground up or major renovations. Features progressive disbursements during construction with interest-only payments, converting to a permanent mortgage upon completion.
Non-QM
Flexible mortgage solutions for borrowers who do not meet traditional lending criteria. Includes bank statement loans, P&L loans, and ITIN loans for self-employed and non-traditional income earners.
Jumbo
Financing for high-value properties that exceed conforming loan limits. Ideal for luxury homes and high-cost real estate markets in Southern California.
Ready to Get Started?
Apply online in minutes or call us to speak with a loan advisor about your DSCR options.
This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Rates, terms, and availability of programs are subject to change without notice.
Reviewed by Joann Ton, Loan Officer (NMLS# 1461031) | Last updated: June 2026