A DSCR loan is an investment-property mortgage that qualifies the borrower based on the property's rental income covering debt service, rather than personal tax returns or W-2s. DSCR loans require a 20–25% down payment, a DSCR of 1.0–1.25+, and let investors close in an LLC and finance both long-term and short-term rentals.
What is a DSCR?
DSCR (Debt Service Coverage Ratio) loans are built for real estate investors. Instead of qualifying on your personal tax returns or W-2 income, the lender qualifies the loan based on whether the property's rental income covers the debt payments. This makes DSCR loans ideal for investors with complex income or growing portfolios.
ASB Capital Loan Funding offers DSCR loans nationwide for acquisitions and refinances of residential investment properties. Close in an LLC, finance short-term and long-term rentals, and scale your portfolio without personal income documentation.
Program Highlights
- No personal income docs required
- Qualify on property cash flow (DSCR)
- Close in an LLC
- Short-term & long-term rentals eligible
- Nationwide lending
- Investor-friendly underwriting
Who This Loan Is For
- •Real estate investors building rental portfolios
- •Self-employed borrowers with complex income
- •Investors who have hit conventional loan limits
- •Buyers of cash-flowing rental properties
Typical Requirements
- •DSCR typically 1.0–1.25+ (rent covers debt)
- •Property must be an investment (non-owner-occupied)
- •Credit score usually 660+
- •Down payment of 20–25%
- •Lease agreement or market rent assessment
- •Property appraisal supporting value and rent
Key Terms to Know
- DSCR Loan
- An investor loan qualified on the property's rental income covering debt service, rather than the borrower's personal income.
- Debt Service Coverage Ratio
- Net operating income divided by total debt payments. A DSCR of 1.25 means income exceeds debt by 25%.
- Entity Financing
- Originating a loan to an LLC or corporation, separating the debt from the investor's personal credit profile.
See our FAQ and loan resources for more definitions and checklists.