Rental Property Loans
DSCR financing for buy-and-hold real estate investors. Qualify based on rental income — not your personal tax returns or employment history.
What is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is a type of investment property mortgage that qualifies you based on the income the property generates — not your personal W-2s or tax returns. Lenders calculate DSCR by dividing the property's gross monthly rent by its total monthly debt obligations (PITIA).
A DSCR of 1.0 means the property's income exactly covers the debt payment. Most DSCR lenders require a minimum ratio of 1.0–1.25. Investor1st Funding works with lenders who accept DSCR as low as 1.0.
DSCR Loan Parameters
- Loan amounts: $75,000 – $2,000,000
- Up to 80% LTV on purchase
- Up to 75% LTV on cash-out refinance
- Minimum DSCR: 1.0 (property income covers payment)
- Terms: 30-year fixed, 5/1 ARM, 7/1 ARM
- No personal income verification or W-2s
- No limit on number of financed properties
- Credit scores as low as 620 considered
- Short-term rental (Airbnb/VRBO) income accepted
- 1–4 unit investment properties eligible
- LLCs and corporations accepted
Who DSCR Loans Are For
- Self-employed investors without documentable income
- Portfolio builders scaling beyond 10 financed properties
- Short-term rental (Airbnb/VRBO) property owners
- Out-of-state investors purchasing in high-yield markets
- Anyone who cannot qualify through traditional lending