For Real Estate Investors

Investment Property Loans Qualify on the Property. Not Your Tax Returns.

DSCR loans are designed for real estate investors who want to grow their portfolio without the friction of traditional income documentation. The property's rental income does the qualifying, not your W-2 or tax returns.

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What Is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. It is a measure of whether the property generates enough rental income to cover its own mortgage payment.

A DSCR of 1.0 means the property's rent exactly covers the payment. A DSCR above 1.0 means it generates more income than it costs. Most lenders want to see a DSCR of 1.0 or higher, though some programs allow below 1.0 depending on the borrower's profile.

The key advantage: your personal income, employment history, and tax returns are not part of the equation. This makes DSCR loans the preferred tool for investors who are self-employed, have complex financials, or simply do not want to run their personal income through underwriting every time they acquire a property.

DSCR vs. Traditional Investment Loan

Traditional Investment Loan

  • ✗ Requires 2 years tax returns
  • ✗ Personal income must support all properties
  • ✗ Business write-offs work against you
  • ✗ Harder to scale a portfolio

DSCR Loan

  • ✓ No tax returns required
  • ✓ Qualifies on the property's rental income
  • ✓ Self-employed and business owners welcome
  • ✓ Easier to scale a portfolio over time

Investment Properties Are a Different Game

When you are buying a primary residence, you can put as little as 3 to 3.5 percent down. When you are buying an investment property, the rules change. The bank needs to believe you are actually going to live somewhere else. If you already own a home and you want to buy a rental property, the bank is going to look at that as an investment, and you will need to put more down, typically 15 to 20 percent.

That is not a bad thing. It is just how investment property financing works, and understanding it up front means you plan correctly and do not get surprised at the end of the process.

Investment Loan Programs

I work with investors at all stages, from buying a first rental to scaling a multi-property portfolio.

D

DSCR Loans

Qualify based on the property's rental income, not your personal income or tax returns. Available for single family, 2-4 unit, and some multi-unit properties. Ideal for self-employed investors, those with complex tax returns, and anyone looking to scale without personal income constraints.

Typically 15-20% down. No personal income documentation required.

C

Conventional Investment Loans

For investors with strong documented income and a straightforward financial picture. Conventional investment loans typically require 15 to 20 percent down and use your personal income for qualification. Good option if your tax returns show strong net income.

15-20% down. Personal income documentation required.

B

Bridge Loans and Fix and Flip

Short-term financing for investors who buy, renovate, and sell. Bridge loans move fast and are based on the property's after-repair value. Good for experienced investors with a clear exit strategy and a reliable contractor relationship.

Short-term. Based on after-repair value. Fast close available.

H

House Hacking

One of the most underused strategies for new investors. If you buy a 2 to 4 unit property and occupy one of the units as your primary residence, you may qualify for owner-occupied financing including FHA with as little as 3.5 percent down. You live in one unit and rent the others. The rental income can offset or even cover your mortgage payment entirely while you build equity and ride appreciation.

As little as 3.5% down on 2-4 unit properties when owner-occupied.

How Real Estate Builds Generational Wealth

You buy a property, put a tenant in, and make sure it is covering the mortgage payment. You ride the appreciation, take the tax write-off, and start building passive income. Over the years, you owe considerably less on the property while its value has grown.

In your lifetime you can pay it off entirely and leave a revenue-generating property to your family. They can occupy it and never worry about housing costs, or they can collect the passive income. That is how generational wealth actually works.

It starts with one property and the right financing structure from the beginning.

"

We had one of the trickiest situations possible, and Joanna and Ax made the whole process extremely smooth. They were on top of it, very knowledgeable, professional, patient, honest, and they really try and get you the best deal possible. We closed with no problem.

Claudia Barajas

Move-Up Buyer, Verified Google Review

Common Questions

Do I need to be an experienced investor to get a DSCR loan?

No. DSCR loans are available to first-time investors as well as experienced portfolio builders. What matters most is the property's income potential and your credit profile. We will review your full situation and identify which programs fit.

How is the rental income calculated for DSCR?

Lenders typically use an appraisal with a rent schedule to determine the market rent for the property. For properties with an existing lease, the actual lease may be used. I will walk you through how your specific property will be evaluated before you commit to anything.

Can I use a DSCR loan to refinance an existing investment property?

Yes. DSCR loans work for both purchase and refinance of investment properties. If you have equity in an existing rental and want to pull cash out for your next acquisition, a DSCR cash-out refinance is one way to do it without going through full income documentation.

What credit score do I need?

Most DSCR programs require a minimum score in the 620 to 680 range, with better pricing available at higher scores. I will pull your numbers and show you exactly where you land across the programs that are available to you.

Ready to Talk Investment Strategy?

Schedule a free consultation and we will review your goals, the property type you are targeting, and which financing structure makes the most sense for your situation.

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Or call (916) 708-8555

All loans subject to credit approval and property appraisal. Rates and terms subject to change. Not a commitment to lend. Examples shown are for illustrative purposes only.