Residential Investment

DSCR Rental Property Loans

Let Your Rental Property's Income Work for You.

Finance eligible residential rental properties using rental income rather than traditional personal income documentation.

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Business-purpose financing

In plain words

A rental property loan where the lender looks mainly at the rent the property can earn compared with its monthly costs, instead of your personal income documents.

Benefits

  • Qualify mainly on the rent the property can earn, not on your personal income documents.
  • Use it to buy, refinance or take cash out of a rental property for business purposes.
  • Own the property in your own name or through an LLC or corporation, with many programs.
  • Fixed-rate, adjustable-rate and interest-only payment options exist, depending on the program.

Eligible property types

  • Single-family homes, attached or detached.
  • Buildings with 2 to 4 units.
  • Townhomes and planned unit developments.
  • Condominiums, including some non-warrantable condos after a project review.
  • Co-ops and condo hotels with some programs.

Financing purposes

  • Purchase of a rental property.
  • Rate and term refinance.
  • Cash-out refinance for business purposes.

General qualification considerations

  • The main test compares the property's rent with its full monthly payment, including taxes, insurance and any HOA dues.
  • Rent is usually based on the appraiser's market rent estimate and any current lease. For a refinance of a rented property, lenders often ask for proof that rent is being paid.
  • Personal income documents such as tax returns and pay stubs are usually not needed, but credit history, payment history and available funds are still reviewed.
  • Lenders may require cash reserves after closing.
  • The property must be an investment property that you and your family do not live in.
  • Ownership in your own name or through an LLC or corporation is available with many programs.
  • First-time investors may qualify under some programs, sometimes with extra conditions.
  • Rural properties and some locations are not eligible with some programs.

Basic documentation checklist

Do not send documents through the inquiry form. After we talk, our team explains how to share them securely.

See the full document checklist

  • Photo ID.
  • Purchase contract, or the current mortgage statement for a refinance.
  • Current lease and proof of rent payments, if the property is rented.
  • Rent roll for a 2 to 4 unit building.
  • Property tax bill, insurance information and HOA details, if any.
  • Entity documents, if an LLC or corporation will own the property.
  • List of other properties you own.

Frequently Asked Questions

What is a DSCR loan?

DSCR stands for debt service coverage ratio. The lender divides the property's monthly rent by its monthly payment, including taxes, insurance and any HOA dues, to see whether the rent covers the payment.

Do I need to show tax returns or pay stubs?

Usually not. These loans focus on the property's rent instead of your personal income. Lenders still review your credit, your payment history and the funds you will bring to closing.

Can I buy the property in an LLC?

Many programs allow ownership through an LLC or corporation. The owners of the company usually sign a personal guarantee.

Can I or my family live in the property?

No. These loans are for investment properties only. A home you plan to live in needs a different kind of loan, which this financing center does not cover.

Can a first-time investor qualify?

Some programs accept first-time investors, often with extra conditions. Tell us about your experience and we will review the options.

Learn More

Related programs and tools to help you prepare.

Related programs

Tools and guides

Request financing for this program

Send a short inquiry with the basics about your property. Our team will review it and contact you to discuss available options.

Request Financing Call 516-777-0385

Financing disclosure

Plan A Realty Corp. facilitates business-purpose investment and commercial real estate financing. All programs are subject to lender availability, underwriting requirements, borrower and property eligibility, and applicable laws. Submission of an inquiry does not constitute loan approval or a commitment to lend.

Investment and business-purpose properties only. Homes you or your family will live in are not part of this financing center.

Contact Plan A Realty Corp.