DSCR Investor Loans
The property qualifies.
Not your paycheck.
A DSCR loan — debt service coverage ratio — is a mortgage for a non-owner-occupied investment property that’s underwritten on the rent the property brings in, not on your personal income. If you own several rentals, are self-employed, or simply don’t want your tax returns in the file, it can be a straightforward way to finance an income property. It cannot finance your primary residence, and both you and the property remain subject to underwriting and approval.
Who this is for
Real estate investors buying or refinancing a single-family rental, a condo, or a small multi-unit property. First-time investors and borrowers with a dozen doors. Buyers who want to hold a property in an LLC. Anyone whose personal debt-to-income ratio is already stretched by other properties. Property and entity eligibility vary by program.
How it works
The underwriter compares the property’s eligible rental income — from a lease or a market rent analysis in the appraisal — to its monthly housing payment: principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.0 means eligible rental income equals the measured housing payment. Most programs want a ratio at or above a set minimum, and some allow ratios below 1.0 with a larger down payment or stronger credit. These programs generally do not require employment verification or a personal income calculation; documentation requirements vary by investor.
What to expect
DSCR loans are generally non-QM, so they’re priced and structured differently from a conventional investment loan. Expect a larger down payment than an owner-occupied purchase, reserve requirements, and the usual credit and appraisal review. Prepayment penalties exist on some programs and are worth asking about if you plan to sell or refinance within a few years. We’ll run the ratio with you before you make an offer so you know whether the deal works at the price you’re thinking.
Questions we hear most
The details matter.
Let’s talk through them.
- Does the property need to be rented already?
- No; a market rent estimate from the appraiser can be used for a vacant property, subject to program requirements.
- Can I close in an LLC?
- Many programs allow it. Entity documentation and eligibility requirements apply.
- Does my personal credit matter?
- Yes, credit score still affects eligibility and terms.
- Can I use short-term rental income?
- Some programs allow it with documented history; it varies by investor and location.
Not sure if you’d qualify? That’s what the Second Look is for.
You’ll be paired with the loan originator licensed in your state. Alabama loans are originated by Aubrea McNamara, NMLS #1842646.
Program availability, documentation requirements, and terms vary by state and investor and change over time. Nothing on this page is a commitment to lend or a guarantee of approval. All loans subject to credit and property approval. Canopy Mortgage, LLC, NMLS #1359687. Equal Housing Opportunity.