DSCR loans · For real estate investors

Let the rent qualify the loan.

A DSCR loan qualifies on the property’s rental income instead of your personal income, so the loan itself usually needs no tax returns. Built for investors buying or refinancing rentals, short-term rentals included.

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Share the property and see whether its rent covers the costs. No tax returns to start.

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What to know.

The essentials, in plain English.

Qualify on the property: The lender compares the rent with the property’s monthly costs instead of reading your pay stubs.
Usually no tax returns: Your personal returns usually aren’t needed, because the property’s income is what qualifies the loan.
Grow past your personal income: Each property qualifies on its own rent, so your next purchase isn’t held to the debt-to-income math of a conventional loan.
Investor-minded guidance: Your loan officer runs the rent, taxes, insurance and dues with you before you commit, and many investors can close in their LLC’s name.

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What happens after you press the button.

Your loan officer reaches out: Ryan reads what you send personally and gets in touch to talk it through.
What you’ll talk about: The property, its rent or expected rent, its costs, and whether you’re buying in your name or an LLC’s.
What to have handy: The property’s address, its lease or expected rent, and its taxes, insurance and dues if you have them.

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Who it fits
Investors who want a property to stand on its own income.
- Investors buying rental homes
- Owners refinancing a rental
- Short-term rental owners
- Self-employed investors whose tax returns understate their income
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What you’ll need
The property does most of the work. Your loan officer confirms the rest.
- The lease, or a rent estimate from the appraiser
- Your credit history
- Proof of reserves
- Your LLC documents, if you’re buying in its name
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Common questions

What is a DSCR?

The debt service coverage ratio: the property’s rent divided by its monthly mortgage costs. Above 1 means the rent covers the costs.

Do I need tax returns?

Usually not for the loan itself, because the property’s income qualifies it. Expect to show the lease or a rent estimate, your credit and your reserves.

DSCR or a conventional investment loan?

A conventional investment loan uses your personal income and tax returns and is often priced lower. A DSCR loan qualifies on the rent instead. Your loan officer can compare both for your property.

Can I use a DSCR loan for a short-term rental?

Many programs accept short-term rental income, using the property’s rental history or a market rent estimate. Your loan officer can check which programs fit your property.

Can I buy in my LLC’s name?

Many DSCR loans let you take title in your LLC’s name, usually with a personal guarantee from you.

Can I live in the property?

No. DSCR loans are for investment properties only, not the home you live in.

What if the rent doesn’t cover the costs?

Some programs still lend when the ratio is below 1, usually with more reserves or a larger down payment. Your loan officer can show you the options.

How much do I need for a down payment?

Investment property loans usually ask for more down than a loan on the home you live in. It depends on the program, the property and your credit.

Will checking my options affect my credit?

Answering a few questions doesn’t check your credit. A credit check comes later, only with your permission, and your loan officer can explain how it may affect your score.

What does a DSCR loan cost?

DSCR loans are usually priced higher than loans on the home you live in, with the usual closing costs and an appraisal that includes a rent estimate. Your loan officer lists every cost before you commit.

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Northbrook families,
in their own words.

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“We are so incredibly grateful we found Ryan! My wife and I were pretty overwhelmed when we first started looking at mortgages. When we were shopping around, we always felt like we were constantly being pushed into boxes or swayed into lending options that just didn't fit us. Meeting Ryan was a total breath of fresh air. From our very first conversation, he didn't treat us like just another file—he took the time to actually listen and understand exactly where we were at in our lives. Because of his incredible knowledge, he helped us get the exact mortgage we needed for our dream home. He educated us, answered every single silly question we had, and turned our anxiety into pure excitement. Ryan is truly incredible at what he does.”

Jonathan Peig2 months ago

“Thank you to Ryan and his team. Our realtor recommended them. We are very happy we decided to work with them. They kept in touch after we decided it wasn't the right time to buy. One year later, we are in our new home. They made the loan process a stress free experience. They put in the time and effort to make sure their clients are able to make informed decisions. I definitely recommend them for your financing needs!”

Amanda Atkinsona year ago

“We were caught in a situation where we needed to close rather quickly and Ryan and his team at Neighborhood Loans really came through. Ryan had great ideas regarding the financing options available. The communication process was markedly better than any of our previous dealings with lenders. The entire team was fabulous to work with-they showed great patience dealing with form submissions, etc. as we are not the most tech savvy couple. Bottom line-one of the finest customer service experiences ever for Lisa and I. We would heartily recommend Ryan and his team to anyone looking for mortgage assistance. Five Stars!”