DSCR Loans – No Tax Returns or W-2s Needed
If you own a rental property that’s gone up in value, you may be able to pull out cash with a refinance. That means using some of your property’s built-up equity to fund renovations, pay off debt, or buy your next investment.
With a DSCR loan, you don’t need to show personal income to qualify. Instead, you qualify based on the rental income the property brings in. It’s a great option if your property is doing well but your tax returns don’t reflect your full financial picture.
Pro Tip: Get Better Loan Terms
The charts and numbers below are just examples and will change based on the market and your specific situation.
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 Period to Lower Your Rate
When refinancing, you’ll choose how long you’ll keep the loan before paying it off or refinancing again. This is called the prepayment penalty period (PPP). The longer it is, the better your rate and the lower your costs might be. If you plan to keep the property, leverage the better pricing with a longer PPP.
Example:
| Interest Rate | 5-Year PPP | 4-Year | 3-Year | 2-Year |
|---|---|---|---|---|
| 7.25% | (0.156) | 0.494 | 0.569 | 1.344 |
| 7.50% | (0.791) | (0.141) | (0.116) | 0.609 |
| 8.00% | (1.922) | (1.547) | (1.172) | (0.609) |
2. Better Credit and Lower Loan Balance = Better Pricing
Two things can really help you get a better deal:
If your property has appreciated, or your credit score has gone up, you may be in a great position to refinance.
| 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. Strong Rental Income Can Get You Better Terms
Lenders look at how much rent your property brings in compared to what the new mortgage payment will be. This is called the DSCR (Debt Service Coverage Ratio).
💡 Improving your rent or lowering expenses to increase your DSCR can make a big difference.
| 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. Interest-Only Option = Lower Monthly Payments
If you want the lowest monthly payment possible, an interest-only loan may be the way to go. You only pay the interest each month for a few years (usually 5 to 10), not the principal.
Key Takeaway: If you make a large extra payment during this interest-only period, your monthly payment will go down—unlike with a regular fixed loan.
| LTV | Adjustment |
|---|---|
| ≤65% | .25 |
| 70% | .375 |
| 75% | .50 |
We’ll walk you through the numbers, review your goals, and help you structure a cash-out refinance that works for your situation.
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.
A Smarter Way to Finance Rental Properties
Looking to grow your rental portfolio without tax returns?
A DSCR loan might be your ideal solution. These investor-friendly loans qualify based on the property’s cash flow—not your income.
How Investors Turn Flips into Long-Term Wealth
What if you could flip a property and keep it for passive income?
Fix-to-rent loans make that possible—by financing both the rehab and the refinance into a 30-year DSCR loan.
Fix and Flip Loans Made Simple: Fast Capital for Fast Movers
Need quick cash to fund your next flip? Fix-and-flip loans are designed for speed, simplicity, and investor flexibility—no income verification required.
”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!”
