DSCR Loans for Investment Property
Qualify based on rental income, not personal income—scale your portfolio without W-2s or tax returns.
Financing That Works for Real Estate Investors
Traditional mortgage lenders want to see W-2s, tax returns, and debt-to-income ratios that don't reflect the reality of investment property ownership. For self-employed investors, business owners, and experienced landlords, conventional financing becomes a roadblock to portfolio growth.
DSCR loans offer a different approach. Instead of qualifying based on your personal income, these loans evaluate whether the property generates enough rental income to cover the mortgage payment. If the deal cash flows, you can get financing—regardless of how your personal tax returns look.
Brookmont Capital Ventures connects rental investors with DSCR lenders nationwide, helping you find competitive terms that match your investment strategy.
How DSCR Loans Work
DSCR stands for Debt Service Coverage Ratio—a simple calculation that measures whether a property's income supports its debt:
DSCR = Monthly Rent ÷ Monthly Payment (PITIA)
Where PITIA includes Principal, Interest, Taxes, Insurance, and Association dues.
Example:
- Monthly rent: $2,200
- Monthly PITIA: $1,750
- DSCR: $2,200 ÷ $1,750 = 1.26
A DSCR of 1.26 means the property generates 26% more income than needed to cover debt—a healthy ratio that most lenders will approve.
DSCR Loan Requirements
| Parameter | Typical Range |
|---|---|
| Minimum DSCR | 1.0 – 1.25 |
| Credit Score | 640+ (700+ for best terms) |
| Down Payment | 20-25% |
| Loan-to-Value | 75-80% |
| Loan Amount | $100K – $3M+ |
| Property Types | 1-4 unit residential, some 5+ |
| Occupancy | Investment property only |
*Terms vary by lender and borrower profile.
Who DSCR Loans Are For
Self-Employed Investors
Your tax returns show deductions that minimize taxable income—great for taxes, challenging for conventional lending. DSCR loans don't care what your Schedule C says.
Full-Time Real Estate Investors
If real estate is your primary business, you may not have the W-2 income conventional lenders require. DSCR lets you qualify on property performance instead.
Portfolio Builders
Conventional financing typically limits investors to 10 mortgaged properties. DSCR loans have no such limit—if the property cash flows, you can keep buying. See how one investor scaled to 16 properties using DSCR financing.
High-Income Earners
Maximize deductions and show lower taxable income? DSCR loans qualify based on the property, not your AGI.
Investors with Complex Income
Multiple businesses, partnerships, or irregular income streams? Skip the documentation headaches.
Benefits Over Conventional Loans
No Income Verification – No W-2s, tax returns, or employment verification required. Qualify based on the property's rental income.
No Property Limits – Conventional loans cap you at 10 properties. DSCR allows unlimited financed properties.
LLC Ownership – Close in your LLC or business entity from day one—no need to transfer title after closing.
Faster Closings – Without income verification complexity, DSCR loans often close in 2-3 weeks.
Investor-Focused Underwriting – Lenders understand investment property dynamics and evaluate deals accordingly.
Property Types
DSCR financing is available for:
- Single-Family Rentals – Houses, townhomes
- 2-4 Unit Properties – Duplexes, triplexes, fourplexes
- Condos and Townhomes – Warrantable units
- Small Multifamily – Some lenders extend to 5-8 units
- Short-Term Rentals – Airbnb/VRBO properties (lender dependent)
Properties must be non-owner occupied and used for investment purposes.
DSCR vs. Conventional Loans
| Factor | DSCR Loan | Conventional |
|---|---|---|
| Income Verification | Property income only | Full documentation |
| Credit Score | 640+ typical | 620-680 typical |
| Down Payment | 20-25% | 15-25% |
| Interest Rate | Higher (6.5-8%+) | Lower (6-7%+) |
| Property Limit | Unlimited | 10 properties |
| Entity Ownership | Yes (LLC) | Typically personal |
| Closing Time | 2-3 weeks | 30-45 days |
Our DSCR Loan Process
Property Analysis
Submit property details including address, purchase price, estimated rent, and your target loan amount.
DSCR Calculation
We evaluate the property's cash flow potential using actual or market rents to determine qualifying ratios.
Lender Matching
Based on your credit profile, property type, and goals, we identify lenders offering competitive terms.
Application and Approval
Streamlined documentation—primarily property-focused with minimal personal financial paperwork.
Closing
Close in as little as 2-3 weeks with clear communication throughout the process.
Why Work With Brookmont
Multiple Lender Options – We work with numerous DSCR lenders, ensuring you get competitive rates and terms—not just whatever one lender offers.
Investor Focus – Our team understands rental property investing and structures financing that supports your portfolio strategy, whether you're using DSCR, bridge loans, or fix and flip financing.
Efficient Process – Skip the back-and-forth. We know what lenders need and help you prepare a complete package upfront.
Ongoing Partnership – As your portfolio grows, we're here to help with refinances, cash-out strategies, and new acquisitions.
Ready to Scale Your Rental Portfolio?
Whether you're acquiring your next investment property or refinancing an existing rental, DSCR financing can help you grow without the limitations of conventional lending.
Questions? Contact our team at info@brookmontcapital.net
Brookmont Capital Ventures is a capital advisory firm. We do not provide direct lending services. All financing is subject to lender approval and underwriting.