DSCR (Debt Service Coverage Ratio) loans underwrite the property, not you. If the rent covers the mortgage, the deal makes sense. No tax returns. No personal DTI. No cap on how many properties you own. Built for investors who want to scale.
Conventional investment loans cap you at 10 financed properties and require every tax return, every rent roll, and your personal DTI on top of it. DSCR removes all of that.
No 1040s, no K-1s, no W-2s. The rent is the qualifier — period.
Your personal debts don't factor in. Neither does your job. Neither does how many other loans you already have.
As little as 20% down. Cash-out to 75% LTV. Rate/term refi to 80%.
No cap. Conventional cuts you off at 10 financed properties. DSCR doesn't care how many you own.
DSCR is a single number — the ratio of the property's monthly rent to its monthly PITIA (principal, interest, taxes, insurance, HOA). Above 1.00 = the rent covers the payment. That's the whole underwrite.
Rent $2,700, PITIA $2,000. Best pricing tier, max LTV available.
Rent = PITIA. Still qualifies on most programs, priced slightly higher.
Rent doesn't cover the payment. Some lenders will still fund at reduced LTV (65-70%). Common for lower-rent Capital Region single-families.
Whether you're buying your first rental or your fiftieth, DSCR moves at the pace you want to move.
You have a W-2, savings, and a rental deal that pencils. Skip the personal DTI conversation entirely.
You're past the conventional 10-property cap. DSCR is what you finance every property after that with.
Buy in the name of your LLC or S-corp. Conventional loans typically don't allow entity vesting; DSCR loans do.
Airbnb and VRBO income can qualify — most programs use a 12-month AirDNA projection or trailing income.
Your tax returns are messy from write-offs. The rent is clean. DSCR keeps your personal file out of the underwrite.
Cash-out DSCR is the "refinance" step in the BRRRR playbook — pull cash out of the rehabbed property to fund the next one.
Every deal is different — these are the typical guardrails. When you call, I'll price your specific deal.
| Guideline | Purchase | Refinance |
|---|---|---|
| Income doc | None — DSCR only | None — DSCR only |
| Max LTV | 80% (20% down) | 80% rate/term · 75% cash-out |
| Minimum FICO | 640 standard · 680+ for best pricing | 640 |
| Minimum DSCR | 1.00 standard · No-Ratio available at reduced LTV | 1.00 |
| Loan amount | $100k to $3M+ (higher case-by-case) | $100k to $3M+ |
| Reserves | 3-6 months PITIA | 3-6 months PITIA |
| Property types | 1-4 family, condo, condotel, non-warrantable | Same |
| Occupancy | Investment only (no primary/second) | Investment only |
| Vesting | Personal or LLC / entity | Personal or LLC / entity |
| Terms | 30-yr fixed · 5/6, 7/6, 10/6 ARM · interest-only | Same |
| Pre-pay penalty | Optional — buys down rate. 3-5 yr step-downs typical. | Same |
Typically 1.00% to 2.00% higher than a conventional 30-year investment loan, depending on FICO, LTV, DSCR ratio, and whether you take a pre-payment penalty. The pre-pay option can shave 0.375-0.625% off the rate — worth it if you plan to hold 5+ years.
Yes. If the property is vacant or you're buying a home to convert into a rental, the appraiser fills out a "market rent schedule" (Form 1007) and that number becomes the qualifying rent.
Conventional counts your job, W-2s, tax returns, personal debts, and caps you at 10 total financed properties. DSCR doesn't ask about any of that — the property qualifies itself. You can own 40 rentals and still buy #41 tomorrow.
Yes — LLC or S-corp vesting is standard on DSCR. You'll personally guarantee the loan, but title vests in the entity. Most investors do it this way for liability and estate reasons.
Most DSCR lenders will use 12 months of trailing rental income from the platform, or an AirDNA report projecting market income. Underwrite is the same — rent divided by PITIA.
Standard 30-45 days. With clean docs and a fast appraisal, DSCR files often close in 21-28 — no personal income underwrite to slow it down.
Licensed across New York State — with deep roots in the Capital Region and select NYC neighborhoods.
Don't see your town? Reach out — I lend statewide. Or see every Capital Region town.