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DSCR Loans
Debt Service Coverage Ratio Investment Financing
Updated: February 2026
Reviewed: February 2026 by Sebastian Naranjo, NMLS #2313958
DSCR Loans
At SRK CAPITAL, we specialize in lending solutions designed for real estate investors - whether you are buying rental property for the first time or expanding your portfolio. Our Debt-Service Coverage Ratio (DSCR) Loans stand out as a game-changing solution for purchasing investment property. These loans use the income generated by an investment property rather than relying on your personal income. With low down payment options and simplified qualification, DSCR loans make real estate investing accessible for beginners and seasoned investors alike.
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Our team specializes in helping real estate investors secure DSCR financing for their investment properties.
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Loan Details
LTV: 80.0% | Down: $100,000
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Rates are actual rates based on current market conditions. Rates are subject to change without notice. Your actual rate may vary based on your credit profile and qualifications. SRK CAPITAL AI can make mistakes. Rates provided by SRK CAPITAL AI should not be considered a commitment to lend.
DSCR loans are a non-QM product designed for investment properties. Rates are based on the property cash flow and debt service coverage ratio rather than personal income. DSCR loans are not available for primary residences.
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What are DSCR Loans?
DSCR loans are designed specifically for real estate investors looking to purchase investment property. Instead of relying on personal income, a lender uses the property's rental income to qualify the loan. Lenders calculate the DSCR by dividing the property's rental income by the total debt payments. If the property's income covers the loan payments, you're on your way to loan approval.
DSCR Calculation
Net Operating Income ÷ Total Debt Service = DSCR Ratio
Property Focus
Qualification based on rental income, not personal income
This type of loan is ideal for property investors who expect a streamlined loan program. Whether you're a first-time investor buying your first rental property or an experienced landlord expanding your portfolio, DSCR loans simplify the financing process for buying a house to rent out.
Why Choose a DSCR Mortgage Loan?
No Personal Income Documentation Required
You don't need tax returns, W-2s, or pay stubs to qualify. This saves time and simplifies the process.
Key Benefit: Faster approval process for experienced investors
Focus on Property Cash Flow
The loan income qualification is based on the rental income, not your personal income.
Faster Qualification Process
Without the need for personal income verification, getting the loan completed is a quicker process.
High Loan-to-Value (LTV) Ratios
With this type of loan, you can finance up to 85% of the property's value. This lets you leverage your money more effectively.
Flexible Loan Terms
You can choose from fixed, adjustable rate, or interest-only options. Terms can be customized to fit your investment strategy.
Perfect for Real Estate Investors
DSCR loans are designed specifically for investment property financing, making them ideal for building your real estate portfolio.
How Do DSCR Loans Work?
The process starts by calculating the DSCR of your property. A DSCR of 1 means the rental income equals the loan payment. Many lenders need a ratio above 1 to approve the loan.
Here's an example:
Monthly Property Expense Breakdown:
Monthly Expenses:
- Principal & Interest:$1,900
- Property Tax:$400
- Insurance:$200
Total:$2,500
Monthly Income:
Rental Income:$3,000
DSCR Calculation:
$3,000 ÷ $2,500 = 1.2
In this case, the DSCR is 1.25, which shows the property generates enough income to cover the loan payment with extra room to spare.
Who Benefits from These Loans?
First-Time Real Estate Investors
If you're buying your first rental property or getting started in real estate investing, DSCR loans offer a straightforward path. No need to prove years of landlord experience - the property's rental potential qualifies the loan. Perfect for property investment beginners.
Ideal for portfolio growth
Real Estate Investors
Whether you're purchasing investment property for the first time or your fiftieth, DSCR loans make it simpler to qualify. Ideal for buying a house to rent out.
Ideal for income flexibility
Self-Employed Borrowers
Traditional loans need proof of steady personal income. DSCR loans bypass this, focusing only on the property's income potential - great for those looking to invest in rental property.
Ideal for quick closings
Seasoned Investors
Ideal for diversification
Investors with Complex Finances
Multiple income streams can complicate traditional mortgage applications. DSCR loans simplify the process for purchasing rental property.
Ideal for
DSCR Loans: Built for Real Estate Investors
Whether you're a seasoned investor or just starting your portfolio, DSCR loans provide the flexibility and efficiency you need to grow your real estate investments.
Advantages of DSCR Loans
Build Wealth Faster
This loan allows for a higher Loan to Value (LTV). This lets you buy more properties with less cash upfront.
Streamlined Process
Fewer income documents means a faster timeframe to loan approval.
Focus on Investment Goals
This type of loan was created with property investors in mind.
Less Limits on Property Count
Traditional loans often restrict the number of financed properties. Many DSCR loans don't.
Why Investors Choose DSCR Loans
DSCR loans offer the flexibility and speed that real estate investors need to capitalize on opportunities quickly, without the traditional income documentation requirements.
Learn More About DSCR BenefitsRequirements for DSCR Loans
While DSCR loans are flexible, there are still requirements to meet.
DSCR Ratio
Most lenders need a DSCR anywhere from .75 to 1.25. Sometimes, lenders offer a No Ratio programs, but those will typically have a higher rate.
Minimum 1.2 DSCR ratio typically required
Down Payment
The typical investment property down payment is 20-25%. However, low down payment options are available - some programs allow as little as 15% down for qualified borrowers with strong DSCR ratios. Your minimum down payment for investment property depends on factors like credit score, property type, and projected rental income.
Lower credit scores may be considered with higher down payment
Reserves
Monthly PITI reserves vary, but you should expect 6 to 12 months. It will depend based on what ratio and down payment you intend to go with.
Property Appraisal
The property must be appraised to confirm its value and rental income potential.
Simplified Qualification Process
Unlike traditional loans, DSCR loans focus on your property's income potential rather than your personal income, making qualification straightforward for investors.
1.2+
Min DSCR Ratio
620+
Min Credit Score
20%
Min Down Payment
Common Questions About DSCR Loans
The typical investment property down payment for DSCR loans is 20-25%. However, low down payment options are available - some programs allow as little as 15% down for qualified borrowers with strong DSCR ratios. Your minimum down payment depends on factors like credit score, property type, and projected rental income.
Yes, DSCR loans offer low down payment investment property options. While 20-25% is standard, borrowers with excellent credit and strong rental income projections may qualify for as little as 15% down. This makes purchasing investment property more accessible for first-time real estate investors.
DSCR loans are excellent for real estate investing beginners. Unlike traditional loans, you don't need years of landlord experience or extensive tax documentation. The loan qualifies based on the property's rental income potential, making it easier for first-time investors buying their first rental property.
The minimum down payment for rental property with a DSCR loan typically ranges from 15-25%, depending on your credit profile and the property's income potential. Strong borrowers with properties showing excellent cash flow may qualify for lower down payment requirements.
Getting started in real estate investing with DSCR loans is straightforward: 1) Find a property with strong rental income potential, 2) Calculate the debt service coverage ratio (rental income divided by mortgage payment), 3) Prepare your down payment (typically 20-25%), and 4) Apply with a DSCR-specialized lender like SRK CAPITAL. No tax returns or personal income verification required.
Absolutely! DSCR loans are specifically designed for buying a house to rent out. Whether you're purchasing a single-family rental, duplex, or multi-unit property, DSCR loans qualify based on the expected rental income rather than your personal income, making them ideal for purchasing investment property to let.
Yes, as long as the property's rental income meets the lender's requirements.
Some lenders offer lower than a 1 Ratio, but they typically have extra requirements. An example would be a higher down payment.
With our streamlined process, full loan approvals are often faster than traditional loans.
Why Choose Us?
SRK CAPITAL is committed to providing a seamless mortgage experience, tailored to your needs and financial goals.
Your Trusted Partner in DSCR Loan Financing
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With our proven track record and dedicated team of experts, we make DSCR loan financing simple, fast, and reliable for real estate investors.
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Easy Steps to Acquire Our DSCR Loans
To get started, simply reach out to one of our team today for a personalized consultation. We will guide you through the mortgage process, from start to finish. And we are committed to helping you choose the best loan program for your financial goals.
Step 1
Explore
Browse through our diverse range of mortgage products to find the ideal fit for your needs.
Step 2
Apply
Our streamlined application process ensures a hassle-free experience when applying for a mortgage loan.
Step 3
Consult
Consult with our experts to learn more about fixed rate loans and make informed decisions for your mortgage.
Step 4
Calculate
Speak to our team to a detailed monthly mortgage payment breakdown so you can plan your finances effectively.
Step 5
Pre-Approval
Gain a competitive edge in the real estate market by getting pre-approved for your mortgage with SRK CAPITAL.
Ready to Get Your DSCR Loan?
Our team of experts is ready to guide you through the entire process. Get started with your application today and unlock the potential of your investment property.
The SRK CAPITAL Difference
Our team is ready to help you finance your next investment property. With our team of experts and extensive lender network, we'll make sure you get the best mortgage possible.
Expert Guidance
Dedicated team with years of DSCR loan expertise
Personalized Service
Tailored solutions for your investment goals
Proven Results
Track record of successful loan closings
ContactSRK CAPITALtoday to learn more about ourDSCR loans. Learn how they offer you smart way to expand your property portfolio.
SRK CAPITAL – Your Partner in Real Estate Investment Success.
Financial Disclosure
The information provided on this page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates and terms are subject to change and may vary based on your individual financial situation. Please consult with a licensed mortgage professional at SRK CAPITAL for personalized guidance.