What a DSCR loan actually measures
DSCR stands for debt service coverage ratio. For a single rental it is a simple fraction: the monthly rent divided by the full monthly housing payment — principal, interest, property taxes, insurance and any HOA dues (often shortened to PITIA). A result of 1.00 means the rent exactly covers the payment. Above 1.00, the property has a cushion. Below 1.00, it runs short each month.
Because the ratio is built from the property’s own numbers, wholesale DSCR programs generally do not ask for W-2s, personal tax returns or a debt-to-income calculation. That is the whole point: an investor whose returns show heavy depreciation, or who is self-employed, or who simply owns a lot of doors, is judged on what the asset produces.
Who DSCR financing fits
DSCR loans are business-purpose loans for non-owner-occupied investment property. They are built for people who own or are buying rentals as an investment, whether in their own name or through an entity.
- Self-employed investors whose taxable income understates their real cash flow
- Owners scaling past the number of financed properties traditional channels allow
- Investors holding title in an LLC who want the loan to match the vesting
- BRRRR investors refinancing out of short-term or hard-money debt
- Short-term rental owners whose income is documented by booking history rather than a long lease
What underwriting still looks at
Qualifying on rent does not mean nothing else matters. Wholesale lenders still review credit history, the appraised value of the property, the amount of equity you will keep in it after closing, cash reserves, and your experience as an owner. For cash-out refinances, they also look at how long you have owned the property — the seasoning question we cover in depth on its own page.
Each program weighs those factors differently. One may be generous on property type but strict on reserves; another may welcome first-time investors but cap leverage on cash-out. That variation is exactly why a broker that shops several wholesale lenders can matter.
Where DSCR Cash-Out Refinance fits in
We are a mortgage broker, not a lender. We do not decide your file and we do not fund it. Our job is to understand the property and the plan — usually “pull equity here so I can buy there” — and then arrange and shop financing from wholesale lenders whose guidelines fit that plan. You get one conversation and a side-by-side view instead of a dozen separate applications.
Broker, not lender. We arrange and shop business-purpose financing from wholesale lenders. Program guidelines, leverage limits and terms vary by lender and change over time; nothing on this page is a commitment to lend.
Common questions
Do DSCR loans require tax returns?
Most wholesale DSCR programs qualify the loan on the property’s rent rather than your personal income, so tax returns and pay stubs are generally not part of the income analysis. Credit, assets, reserves and the property itself are still reviewed.
Can I use a DSCR loan on a home I live in?
No. DSCR loans arranged through us are business-purpose loans for non-owner-occupied investment property only. They cannot be used for a primary residence or a second home you use personally.
What DSCR do I need to qualify?
It varies by program. Some wholesale lenders want rent to exceed the payment by a margin, some accept a ratio near 1.00, and some offer options below 1.00 with more equity required. Run your numbers in our calculator, then let us shop the scenario.