Credit profile
Program minimums vary. Stronger credit generally unlocks better pricing and leverage.
DSCR loan guide
What is a DSCR loan?
A DSCR loan lets investment property owners qualify primarily on the property's rental income — not personal W-2s or tax returns. That makes it a practical path for Airbnb, VRBO, long-term rental, and portfolio investors.
How DSCR qualification works
Lenders calculate Debt Service Coverage Ratio as rental income divided by the monthly property debt payment. A ratio above 1.0 means the property is expected to cover its own payment from rent.
Underwriting still reviews credit, down payment, reserves, appraisal, and property type — but the story starts with cash flow, not personal employment history.
DSCR Formula
Property Rental Income
Property Debt Payment
$6,000
÷
$4,500
= 1.33
Typical requirements
What investors usually need for a DSCR loan
Down payment / equity
Often in the 20–25% range depending on occupancy, property type, and DSCR.
Reserves
Cash reserves measured in months of PITIA are commonly required after closing.
Property documentation
Appraisal, lease or STR income evidence, insurance, and entity docs when vesting in an LLC.
Who DSCR fits
Built for how rental investors actually operate
Short-term rental owners
Airbnb and VRBO cash flow can be underwritten when income support is documented.
Self-employed borrowers
Useful when tax returns show write-offs that understate true cash flow capacity.
LLC / entity vesting
Many programs allow investment properties to close in an entity subject to guidelines.
Portfolio growth
Refinance and acquisition strategies that scale beyond one primary residence loan.