No Tax Returns. No W-2s. Just Cash-Flowing Property.
If your goal is to build long-term wealth through rental properties, DSCR loans are built just for you. Whether you’re purchasing a single-family rental or a small multi-unit property, you can qualify based on the property’s income—not your own.
With a Buy & Hold strategy, you’re not flipping. You’re planning to earn monthly income and grow equity over time. A DSCR loan helps you do that by focusing only on the numbers that matter: Does the property cash flow?
A DSCR loan (Debt Service Coverage Ratio loan) is a mortgage designed for real estate investors. It lets you qualify based on the rental income from the property—not your job, taxes, or bank statements.
DSCR = Rental Income ÷ Monthly Mortgage Payment
The higher the DSCR, the better your loan pricing.
Investor: John is buying a duplex for $450,000
Projected Rent: $3,400/month
Monthly Mortgage Payment, taxes & Insurance: $2,600
DSCR = 3,400 ÷ 2,600 = 1.31
John qualifies—without showing his personal income—because the property cash flows.
Even with DSCR loans, there are ways to qualify for better pricing:
How to Read the Following Matrix:
Numbers in parentheses like (1.250) = good! These are credits that lower your costs.
Positive numbers like 1.250 = fees or points you’d pay to get that rate.
1. Choose a Longer Prepayment Penalty Period
The longer you’re willing to hold the loan before paying it off or refinancing, the better your rate. Here are a few examples
| Rate | 5 Yr PPP | 4 Yr | 3 Yr | 2 Yr |
|---|---|---|---|---|
| 7.25% | (0.156) | 0.494 | 0.569 | 1.344 |
| 7.50% | (0.791) | (0.141) | (0.116) | 0.609 |
2. Improve Your Credit or Lower Your Loan-to-Value (LTV)
| FICO Score | ≤55% LTV | 60–65% | 70–75% | 75–80% |
|---|---|---|---|---|
| 760+ | (1.375) | (1.250) | (0.875) | (0.625) |
| 720–739 | (1.000) | (1.000) | (0.500) | 0.750 |
| 680–699 | 0.250 | 0.500 | 2.000 | N/A |
3. Increase the DSCR by Boosting Rent or Reducing Expenses
| DSCR | ≤55% LTV | 60–65% | 70–75% | 75–80% |
|---|---|---|---|---|
| ≥ 1.25 | (2.650) | (2.650) | (2.000) | (0.875) |
| ≥ 1.00 | (2.125) | (2.150) | (1.250) | 0.000 |
| < 1.00 | 0.500 | 0.500 | 2.250 | N/A |
4. Consider Interest-Only Payments to Boost Cash Flow
LTV Range
Interest-Only Feature
| LTV | Adjustment |
|---|---|
| ≤ 65% | .25 |
| 70% | .375 |
| 75% | .50 |
This option can lower your monthly payment and let you reinvest the extra cash into more properties.
If you’re committed to buying and holding for long-term income and appreciation, a DSCR loan gives you the flexibility and freedom to scale without red tape.
The pricing examples provided are for general informational purposes only and may vary significantly by lender, borrower profile, property type, market conditions, and program specifics. Adjustments for features such as prepayment penalties, credit scores, DSCR ratios, and interest-only options are subject to change without notice.
For personalized pricing and a loan structure tailored to your investment goals, Book a Call Now to review your scenario with one of our licensed mortgage professionals.
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
“Acquisition & Rehab to DSCR, FMP made it seamless.They funded 80% of my duplex purchase and 100% of the rehab. Once the work was done, they refinanced me into a 30-year DSCR loan—lower payment, better cash flow. Smooth and simple!”
“They got my flip funded fast!” FMP delivered 75% of the purchase and 100% of the rehab—right on time for a competitive Fix & Flip. They understood the project, the numbers, and my goals. I made a hefty profit in just a few weeks and I’m coming back for the next one.
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
”FMP Mortgage Pros made the loan process seamless! Utilizing my rental income was a game changer—easy qualification without needing to provide personal income verification!”
