DSCR Loans · My Mortgage Company
DSCR Loans for Real Estate Investors
Qualify based on what the property earns — not what you earn. DSCR loans are the preferred financing tool for rental property investors who want to scale without the bureaucracy of conventional investor guidelines.
Investor Advantages
Why Investors Choose DSCR Loans
No Personal Income Required
Qualification is based on the property's rental income, not your W-2s or tax returns. Ideal for investors with complex income situations.
Scale Your Portfolio
No limit on the number of financed properties in most programs. DSCR loans are purpose-built for investors growing a rental portfolio.
Simple Documentation
Minimal paperwork compared to conventional investor loans. No employment verification, no personal income analysis — just the property's rent and your credit.
1–4 Unit and Short-Term Rentals
Finance long-term rentals (SFR, duplex, triplex, quadplex) and short-term rentals (Airbnb, VRBO) using projected or documented rental income.
Eligibility
DSCR Loan Requirements
DSCR loans are underwritten around the property's income performance, not your personal financial situation. The key metric is whether the rent covers the payment.
- DSCR of 1.0 or higher (rental income ≥ monthly debt payment; some programs allow 0.75+)
- Minimum 660 credit score (700+ for better terms)
- 20–25% down payment required (non-owner-occupied investment property)
- Short-term rental income may be calculated using AirDNA or comparable market data
- No personal income documentation required in most programs
- Entity borrowing allowed (LLC, corporation) — ideal for asset protection
- Loan amounts typically $150,000–$3,000,000
- 30-year fixed, ARM, and interest-only options available
Common Questions
DSCR Loan FAQ
What is DSCR and how is it calculated?
DSCR stands for Debt Service Coverage Ratio. It measures whether a property generates enough rental income to cover its mortgage payment. The formula is: DSCR = Gross Monthly Rent ÷ Monthly PITIA (principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means the rent exactly covers the payment. Most programs require a 1.0 minimum, though some allow ratios as low as 0.75 with a larger down payment.
Can I use projected rental income or does it need to be leased?
Many DSCR programs accept market rental income — what the property could reasonably rent for — rather than requiring an existing lease. A licensed appraiser or market data provider (like AirDNA for short-term rentals) determines the market rent. This is especially useful for properties being purchased vacant or properties transitioning from owner-occupied to rental use.
Can I borrow through an LLC with a DSCR loan?
Yes. DSCR loans are frequently structured with the borrower being an LLC or other entity, which is common in real estate investing for liability protection. Lenders will typically still require a personal guarantee from the primary member/owner. Make sure to discuss entity structure with your attorney before closing.
How is a DSCR loan different from a conventional investment property loan?
A conventional investment property loan (Fannie/Freddie) requires full personal income documentation, limits the number of financed properties (typically 10), and applies stricter DTI requirements. A DSCR loan has none of these constraints — it only analyzes the property's income relative to its debt. DSCR loans are Non-QM products with slightly higher rates, but offer far greater flexibility for active investors.
Ready to Grow Your Portfolio?
Omar works with Kern County investors to structure DSCR deals that cash flow — and close fast.
My Mortgage Company, Inc. · CA DRE #02168831 · NMLS #2269164 · Broker: Omar L. Ortiz, NMLS #951384, DRE #02056548. DSCR loans are Non-Qualified Mortgage (Non-QM) products and are not federally backed. They carry different qualification standards than agency programs. Investment properties only. Loans subject to credit approval. Not all applicants will qualify. All figures, rates, fee ranges, and examples shown on this page are for informational purposes only and are not a guarantee of rates, fees, loan terms, or qualification. This is not a commitment to lend.