What is a DSCR loan?
A DSCR loan is an investment property mortgage that qualifies mainly on the property's cash flow, not your personal income. The lender compares the monthly rent with the full monthly payment. If rent covers the payment by enough, the property can qualify without tax returns or a debt-to-income calculation.
How do I calculate DSCR?
Divide the property's monthly rent by its monthly PITIA: principal, interest, property taxes, homeowners insurance and any HOA dues. For example, $2,500 rent ÷ $2,000 PITIA gives a DSCR of 1.25. The calculator above does the math with your numbers.
What DSCR do I need to qualify?
It depends on the program. Many investors use 1.00 (rent equals payment) and 1.25 (rent is 25% above payment) as reference points, and some programs allow ratios below 1.00 with stricter terms. Daniel will confirm what fits your scenario.
Which rent number is used: my lease or market rent?
Lenders typically use the lower of the signed lease and the appraiser's market rent estimate. On a vacant property or a purchase, the market rent schedule in the appraisal is usually what counts. Short-term rentals may use booking history or a short-term rental income analysis, depending on the program.
Can I use a DSCR loan to buy a rental?
Yes. DSCR loans are used for both purchases and refinances of investment properties. On a purchase, qualification is based on the projected rent from the appraisal. You'll also need a down payment and reserves.
Can I close in my LLC?
DSCR loans are business-purpose loans, and many allow the borrower to be an LLC or other entity, usually with a personal guarantee from the members. You'll typically provide the operating agreement, articles of organization and EIN letter.
Do I need tax returns or W-2s?
DSCR programs generally don't use personal tax returns or W-2s to calculate income. You still need credit, assets for the down payment and reserves, and the property documents. Daniel will confirm the exact list for your scenario.
Can I get cash out with a DSCR refinance?
Yes. A DSCR cash-out refinance replaces your current loan with a larger one, and you keep the difference. The maximum loan is limited by a percentage of appraised value and by the DSCR at the new, higher payment. Limits vary by program — Daniel will confirm what fits your scenario.
Is a DSCR loan rate higher than a conventional loan?
DSCR loans are generally priced above conventional investment loans because they rely on the property rather than full income documentation. Pricing depends on credit, loan-to-value, DSCR, property type and the prepayment option you choose. Daniel can show you side-by-side options.
Do DSCR loans have prepayment penalties?
Many do, often stepping down over the first few years. Shorter or no-penalty options are usually available at different pricing. Pick the structure that matches how long you plan to hold the property.
Does this calculator check my credit?
No. The calculator and form don't pull credit. Credit is reviewed only if you decide to move forward with an application.
Which states do you serve?
Daniel Becerril (NMLS #2388968) is licensed in Georgia, Indiana, Louisiana, Mississippi, North Carolina, New Jersey, Nevada, Rhode Island, South Carolina and Vermont. Properties in other states can't be served right now.
Can I use a DSCR loan for an Airbnb or vacation rental?
Some programs accept short-term rentals and may use booking history or a market rent analysis to estimate income. Guidelines differ more for short-term rentals than for leased properties, so send the property details and any booking history with your scenario.
Is there a limit on how many rentals I can finance?
DSCR programs are not bound by the conventional cap on financed properties, though each lender sets its own exposure limits and reserve requirements. Daniel can review a portfolio plan with you.
Can a DSCR loan pay off a hard-money or bridge loan?
Often, yes, once the property is rented or rent-ready and meets the program's seasoning and valuation rules. Share your payoff and timeline so Daniel can check what applies.
Do I need landlord experience?
Not always. Some programs accept first-time investors, sometimes with different leverage or reserve requirements. Experience can widen the options.
What if my DSCR is below 1.0?
Some programs consider ratios below 1.0 with compensating factors such as a larger down payment or stronger reserves, but options narrow. Daniel will tell you honestly if a different structure or price point makes more sense.
Do you offer fix-and-flip or construction loans?
Not on this site. CheckMyDSCR focuses on rental properties that are, or will soon be, rented. Daniel can discuss a refinance once a project is complete and leased.