DSCR Loan
Qualify Based on Property Cash Flow
A Debt Service Coverage Ratio (DSCR) loan is designed for real estate investors who want to qualify based on a property's cash flow rather than personal income. No W-2s, no tax returns — just the property's ability to perform.
Benefits of DSCR Loans
Flexible financing designed for real estate investors at every level — from first-time buyers to seasoned portfolio owners.
Quicker Closing Times
Streamlined approval process — close faster and secure deals with confidence.
No Income or Job History Verification
Qualify based on property performance — no W-2s or tax returns needed.
No Limit on Number of Properties
Build your portfolio without restrictions — finance an unlimited number of investment properties.
Loan Amounts Up to $4,000,000
Substantial financing power for single-family, multi-family, and portfolio acquisitions.
As Little as 20% Down Payment
Preserve capital with lower down payment requirements.
What Makes DSCR Loans Different
Designed specifically for real estate investors who want flexibility and speed.
Unlimited Cash Out
Access your equity without restrictions — ideal for scaling your investment portfolio.
- No limit on cash-out amounts
- Use funds for renovations or new acquisitions
- No reserves required on cash-out loans
Interest-Only Option
Maximize monthly cash flow with interest-only payment structures.
- Lower monthly payments
- Improve DSCR calculation
- Ideal for short-term rental investors
Airbnb & Short-Term Rentals
Both long-term and short-term rentals are eligible — including Airbnb, VRBO, and vacation properties.
- No rental history restrictions
- Projected income accepted
- Seasonal rentals qualify
DSCR Loan Specifications
Everything you need to know about qualification requirements and loan terms.
Loan Amounts
Up to $4,000,000 for 1-4 unit properties. Higher amounts considered on a case-by-case basis.
Down Payment
As little as 20% down for investment properties. Competitive LTVs based on DSCR ratio.
DSCR Requirement
Typically 1.0 or higher. Lower ratios considered with additional reserves or down payment.
Credit Score
Minimum 660 FICO. Higher scores may qualify for better rates and terms.
Property Types
Single-family, 1-4 unit multi-family, condos, townhomes. All rental types accepted.
Vesting Options
Individual, LLC, Corporation, Trust — borrow in the name of your business entity.
Helping a First-Time Developer Build Their Dream Investment
Real results from real clients — BluEleven delivers from start to finish
Why DSCR Works for Investors
No Personal Income Verification
Unlike conventional loans that require W-2s and tax returns, DSCR loans focus solely on the property's ability to generate income. Perfect for self-employed investors and those with complex tax situations.
LLC & Corporate Vesting
Borrow directly in the name of your business entity. This provides liability protection and simplifies your investment structure without requiring personal guarantees in many cases.
No Reserve Requirements on Cash-Out
For cash-out refinances, no reserve requirements. For purchase or rate/term refinance, 6 months of reserves are typically required unless DSCR ratio is less than 1.
Frequently Asked Questions About DSCR Loans
A Debt Service Coverage Ratio (DSCR) loan qualifies borrowers based on the property's rental income rather than personal income. Lenders calculate the ratio by dividing the property's gross rental income by the total mortgage payment. A DSCR of 1.0 means the property generates exactly enough income to cover the payment.
Most DSCR programs require a minimum credit score of 660. Higher credit scores may qualify for better rates and terms.
Yes! Both long-term and short-term rentals are eligible, including Airbnb, VRBO, and seasonal vacation rentals.
Down payments start as low as 20% for investment properties. Purchase, rate/term refinance, and cash-out refinance are all available.
No — there is no limit on the number of financed properties. DSCR loans are designed for investors scaling their portfolios.
No reserves are required on cash-out loans. For purchase or rate/term refinance, 6 months of reserves are typically required unless the DSCR ratio is less than 1.
Yes, interest-only options are available. This allows investors to maximize monthly cash flow and improve the DSCR calculation.