DSCR Loans
DSCR Loans: Simplified Financing for Real Estate Investors
If you’re a real estate investor seeking to finance rental properties without relying on personal income, a DSCR Loan could be the ideal solution.
A Debt Service Coverage Ratio (DSCR) loan allows you to qualify for a mortgage based on the property’s cash flow rather than your personal income. This makes it perfect for investors who earn rental income but want to avoid providing W-2s, pay stubs, or tax returns.
DSCR loans are part of Non-QM (Non-Qualified Mortgage) options, designed for borrowers with non-traditional income or those seeking flexible mortgage solutions.
Who Can Benefit from a DSCR Loan?
DSCR loans are built for investors who want to qualify based on the rental income a property generates. Ideal candidates include:
- Landlords purchasing single-family or multi-family properties
- Short-term rental or vacation property investors
- Property managers and real estate professionals
- Self-employed investors whose tax returns may not reflect actual income
If you’re looking to expand your real estate portfolio without using personal financial documents, a DSCR loan may be the right choice.
Understanding the Debt Service Coverage Ratio (DSCR)
The DSCR measures how well a property’s rental income covers the mortgage payment. For instance, if a property generates $2,000 per month in rent and the mortgage is $1,500, the DSCR is 1.33.
Most lenders prefer a DSCR of 1.0 or higher, indicating the property generates enough income to cover its debt.
How DSCR Loans Work
Unlike traditional loans, DSCR loans don’t require W-2s, tax returns, or pay stubs. Lenders focus on:
- The property’s net operating income (NOI)
- Cash flow from rent payments
- Monthly loan payment obligations
This approach allows investors to qualify for financing based on rental income, providing flexibility and faster approvals.
DSCR Loan Requirements
To qualify for a DSCR loan, you generally need:
- A DSCR of 1.0 or higher
- A credit score of around 620 or higher
- A down payment of 20–25%
- Experience managing rental properties (preferred, but not always required)
- Documentation of property income or rental analysis
Eligible Property Types
DSCR loans can be used for:
- Single-family homes
- Multi-family units (up to 4 units)
- Condos and townhomes
- Short-term rentals like Airbnb properties
- Long-term investment properties
If a property generates income, it can typically be financed with a DSCR loan.
Why Investors Choose Windward Mortgage
At Windward Mortgage, we specialize in helping real estate investors secure financing with DSCR loans. Our clients benefit from:
- Flexible cash-flow-based mortgage options
- Solutions for self-employed and portfolio investors
- Fast closings with no tax return requirements
- Personalized guidance through the DSCR process
- Access to top real estate investment loan programs
We make it easier for investors to qualify quickly and focus on growing their portfolio.
Steps to Apply for a DSCR Loan
- Schedule a Consultation – Review your investment goals and assess eligibility.
- Submit Property Income Details – Provide rent rolls or lease agreements.
- Get Pre-Approved – See what you qualify for based on the property’s cash flow.
- Find the Right Property – Shop for a new rental or refinance an existing one.
- Close the Loan – Complete paperwork and secure financing efficiently.
Our team guides you through every step, making the DSCR loan process smooth and stress-free.
✅ Ready to Invest Smarter?
DSCR loans provide a flexible, income-based path to financing investment properties. Windward Mortgage can help you qualify without personal income documents, so you can confidently fund your next investment.
📞 Contact us today to learn more or start your DSCR loan application.
