DSCR Loans: The Smartest Loan Investors Aren’t Using Enough

If you’re a real estate investor — or working with one — you probably already know how hard it can be to qualify for a mortgage using traditional guidelines.

“We need your tax returns.”“Let’s calculate your net rental income after expenses.”“That write-off affects your qualifying.”“We’ll need a full 1007 rental schedule…”

Sound familiar?

Now contrast that with how a DSCR loan works:

✅ No income docs

✅ No job required

✅ No tax returns

✅ Just the cash flow from the property

What Is a DSCR Loan?

DSCR = Debt Service Coverage Ratio

It’s a simple formula:Monthly Rent ÷ Monthly Payment

If the number is 1.00 or higher, you’re good to go.

Rent = $2,500/month💸 PITI = $2,300/month➡ DSCR = 1.09 (That qualifies)

And that’s it. No W-2s, no 1040s, no P&L statements.

You’re approved based on the asset’s ability to pay for itself — not your personal income.

 Why Investors Are Using DSCR Loans Right Now:

• Fast closings (often 2–3 weeks)

• Properties can be titled in an LLC

• Can be used for short-term rentals, long-term, or multi-unit

• Perfect for borrowers scaling up and protecting personal DTI

• Ideal for investors with strong reserves but aggressive write-offs

Bonus: We can use market rent (via appraisal) — not just actual rent — if the unit is currently vacant or under market.

 Recent Scenario (Closed Last Week):

Client bought a duplex in Cleveland, all cash-flow positive.

Used a DSCR refi to pull out $165K in working capital. No income needed.Closed in 19 days.Already in escrow on the next property using that cash.

Agents — Here’s Why This Matters:

You probably have investors sitting on sidelines thinking they “don’t qualify.”

They’re wrong. They just haven’t seen the right loan.

You can:

• Help them scale their portfolio

• Win more offers on rental properties

• Position listings as investor-friendly

This is how your investor clients grow — and how you become part of the strategy, not just the sale.

Bottom Line:

DSCR loans are the investor’s shortcut to scale — no income needed, no drama.If the property cash flows, we can make it happen.