DSCR loans — qualify on the rent, not your tax returns.
Finance investment property on the home's cash flow — no W-2s, ~20–25% down, close in an LLC, scale past the 10-property cap. Lending in 33 states from Las Vegas.
Quick answer — A DSCR loan is an investment-property mortgage that qualifies on the property's rental income instead of your personal income — no tax returns or W-2s. Lenders divide the monthly rent by the full payment (PITIA); a DSCR of 1.0 or higher means the rent covers the loan.
Reviewed by Vatche Saatdjian · Las Vegas mortgage expert since 2004 · NMLS #65506
A DSCR loan in three moves.
The property's cash flow does the qualifying. Here's the whole path.
Run the numbers
Divide the property's monthly rent by its full payment (PITIA). That ratio is your DSCR — 1.0 means the rent covers the loan.
Qualify on the property
No tax returns, W-2s, or pay stubs — it's a business-purpose loan. Plan on ~20–25% down and roughly 620+ credit.
Close & scale
Fund in an LLC for privacy and protection — then do it again. DSCR programs generally have no cap on financed properties.
Estimate your DSCR in seconds.
Enter the rent and the payment — we'll show the ratio, the zone, and what it means.
Estimate only, based on the figures you enter. Not a rate quote, pre-approval, or commitment to lend. Actual DSCR, rates, terms, and eligibility are determined by the lender and subject to underwriting.
DSCR requirements, in plain terms.
Guidelines vary by lender and are subject to underwriting — here's the typical shape of a file.
- DSCR target: 1.0 can fund · 1.25+ earns the best pricing · a no-ratio option exists below 1.0.
- Down payment: ~20–25% (sometimes 15% at strong DSCR + credit); LTV commonly to 75–80%.
- Credit: roughly 620–680+ FICO floor; better pricing as the score rises.
- Property: non-owner-occupied 1–4 unit, plus many condos, 5–8 unit, and short-term rentals.
- Reserves: typically about 6 months of payments (varies by program).
- Vesting: commonly close in an LLC for asset protection and privacy.
Income docs aren't required because DSCR loans are business-purpose investment loans — generally exempt from the consumer ATR/QM rule under Reg Z (12 CFR 1026.3(a)).
Built for building a portfolio.
No income docs
No tax returns, W-2s, or pay stubs. Underwritten to the property's rent — ideal for self-employed and 1099 investors.
Close in an LLC
Vest title in your entity for privacy and asset protection — a structuring advantage conventional financing rarely allows.
No 10-property cap
Conventional financing caps you at 10 financed properties (Fannie Mae). DSCR programs generally don't — scale the portfolio.
Two ways to finance a rental.
Illustrative comparison — terms vary by lender and are subject to underwriting.
| Factor | DSCR loan | Conventional investor loan |
|---|---|---|
| Qualifies on | The property's rent (DSCR = rent ÷ PITIA) | Your personal income + DTI |
| Income docs | None — business-purpose | 2 yrs returns, W-2s/1099s, pay stubs |
| Typical down | ~20–25% (sometimes 15%) | ~15–25% for investment property |
| Financed-property cap | Generally none — scale a portfolio | 10 financed properties max (Fannie Mae) |
| LLC vesting | Commonly allowed | Generally must close in your name |
| Short-term rental | Often allowed (varies) | Restricted / case-by-case |
| Rate posture | Higher; prepay penalty common | Lower; no prepay penalty |
| Best for | Self-employed; portfolio scaling | W-2 buyers under 10 properties |
Sources: Fannie Mae Selling Guide B2-2-03 (10-property limit); CFPB / Reg Z 12 CFR 1026.3(a) (business-purpose exemption). As of 2026.
The BRRRR loop, powered by a cash-out refi.
Buy, improve, rent, then pull your capital back out with a DSCR refinance — and do it again.
Nevada & Las Vegas investors: Clark County's rental demand makes DSCR a natural fit for Summerlin, Henderson, North Las Vegas and Spring Valley rentals. We're a direct Las Vegas lender pricing DSCR files in-house — local market knowledge, lending in 33 states.
DSCR loans, answered.
Investing as a veteran or after an FHA house-hack? See DSCR for veteran investors and DSCR after an FHA house-hack.
Read what buyers say.
Customer experiences may vary. Reviews do not guarantee loan approval, rates, terms, or outcomes.
Qualify on the rent.
Get pre-approved.
One application, a direct Las Vegas lender, and a clear read on your DSCR — purchase or cash-out refinance, close in an LLC, no property cap.