DSCR Loans
Rental Property Financing Without Tax Returns
Tired of traditional income documentation slowing down your investment deals? A DSCR loan (Debt Service Coverage Ratio loan) is a powerful tool for real estate investors who want fast, flexible financing based on rental property cash flow—not personal income.
At Salute Mortgage, our DSCR mortgage programs are designed to help you scale your rental portfolio with fewer roadblocks and more control.
Get Your QuoteWhat Is a DSCR Loan?
A DSCR loan is a type of non-QM mortgage that qualifies borrowers based on the income generated by the property—not W-2s, pay stubs, or tax returns. The key factor is the Debt Service Coverage Ratio (DSCR), which compares a property’s monthly rental income to its total monthly mortgage payment (PITIA).
If the property earns enough to “cover” its debt service (typically a DSCR of 1.0 or higher), you may qualify—regardless of your personal income documentation.
How DSCR Is Calculated
DSCR = Monthly Gross Rent ÷ Monthly PITIA
- Example:
- Rent: $2,200/month
- PITIA: $2,000/month
- DSCR = 1.10 → Qualifies
A DSCR of 1.0 means the property breaks even. Many lenders accept ratios as low as 0.75 with compensating factors, and higher ratios can unlock better rates.
Key Benefits of a DSCR Real Estate Loan
✅ No personal income or employment verification
✅ No tax returns, W-2s, or pay stubs required
✅ Fast approvals—ideal for competitive markets
✅ Available for short-term and long-term rentals
✅ Qualify using market rents (leased or projected)
DSCR Loan Requirements
| Requirement | Typical Guideline |
|---|---|
| Minimum DSCR | 1.0 (some allow 0.75) |
| Credit score | 660+ preferred |
| Down payment | 20–25% (some programs as low as 15%) |
| Loan amount | Up to $3 million (case by case) |
| Property type | 1–4 units, condos, vacation rentals |
| Occupancy | Investment properties only (non-owner-occupied) |
Who Should Use a DSCR Mortgage?
DSCR loans are ideal for:
- Full-time real estate investors
- Borrowers with high write-offs or irregular income
- Buyers of short-term rental properties (Airbnb, VRBO)
- Self-employed or gig economy professionals
- Foreign nationals and out-of-state investors
DSCR Loan vs Traditional Investment Loan
| Feature | DSCR Loan | Traditional Investment Mortgage |
|---|---|---|
| Income verification | Rental income only | Full income/documents required |
| Approval speed | Faster | Slower |
| Ideal for | Investors with cash flow | Borrowers with strong personal income |
| Occupancy | Non-owner-occupied only | May allow second homes |
DSCR Loan FAQs
A DSCR (Debt Service Coverage Ratio) loan is designed for real estate investors and self-employed individuals who may not qualify for traditional loans due to limited income documentation. Instead of personal income, this loan is based on the property’s ability to generate rental income to cover its mortgage payments.
The DSCR is calculated by dividing the property’s gross monthly rental income by its monthly mortgage payment (PITI). A ratio of 1.0 or higher typically indicates that the property generates enough income to cover its debt obligations.
No. One of the biggest advantages of DSCR loans is that they don’t require W-2s, tax returns, or pay stubs. Instead, qualification is based on the property’s cash flow, making it ideal for investors with complex financial profiles.
DSCR loans can be used for a variety of investment properties, including single-family homes, multi-units, condos, and short-term rentals (Airbnb/VRBO). Whether you’re expanding your portfolio or refinancing an existing asset, DSCR gives you flexible options.
Start Building Wealth with a DSCR Loan
Let Salute Mortgage structure a deal around your goals—not your tax returns.
Get Your Quote