What Is a DSCR Loan?

A Debt Service Coverage Ratio (DSCR) loan is a type of real estate financing based on a property’s income rather than the borrower’s personal income. These loans are ideal for real estate investors seeking to expand their rental portfolios without providing traditional income documentation.

Lendmire offers DSCR loans that evaluate the property’s ability to generate enough cash flow to cover its own debt — making it possible to finance based on rental performance, not personal tax returns.

Key Benefits of DSCR Loans

• No personal income verification required

• First-time investors and first-time homebuyers allowed

• Short-term and long-term rental income permitted

• Gift funds allowed toward closing

• Cash-out refinance allowed, with funds eligible for reserve use

• No waiting periods or traditional TRID disclosure requirements on non-owner-occupied transactions

DSCR Loan Program Highlights

• Minimum DSCR: 0.75 (Net operating income must cover at least 75% of the monthly payment)

• Max LTV: 80%

• Minimum FICO: 620

• Loan amounts up to $2.5 million

• Highest mid credit score among all borrowers used for pricing

• New appraised value allowed after 6 months

• Cash-out allowed up to $1.5 million, and may count as reserves

• 1007 rental form not required (in many cases)

Rate & Term Options

• 30- and 40-year fixed rate options

• Interest-only (I/O) terms available for both 30- and 40-year loans

• 5/6 and 7/6 ARM options available, including interest-only

• No owner-occupancy required — ideal for investment properties

Loan availability, rate structure, and DSCR requirements vary by lender and property. Subject to non-QM underwriting guidelines.

Who Uses DSCR Loans?

• Investors acquiring rental properties, including short-term rentals (Airbnb/VRBO)

• Buyers with significant property cash flow, but complex or limited tax returns

• Self-employed borrowers and entrepreneurs seeking non-traditional loan options

• Real estate investors building multi-property portfolios

Why Lendmire

Lendmire specializes in DSCR loans and investor-focused lending. Our team understands the cash-flow-based model and provides personalized service to match your investment strategy with the right lender, structure, and timeline — with a focus on efficiency and clarity.

Compliance Notice

Lendmire complies with all applicable federal and state mortgage regulations. DSCR loan approvals and terms are subject to investor guidelines, credit, property review, and underwriting. A Loan Estimate (LE) will be provided after receipt of a complete application and required documentation, where applicable.