Non-QM
DSCR Loans
Qualify real estate investors based on property cash flow — not personal income.
Overview
Debt Service Coverage Ratio (DSCR) loans are a Non-Qualified Mortgage (Non-QM) product designed for real estate investors. Instead of evaluating personal income through W-2s or tax returns, DSCR loans qualify the borrower based on the property's rental income relative to its housing expenses. This allows investors to finance rental properties — and build portfolios — without traditional income documentation standing in the way.
Who It May Fit
Real estate investors purchasing or refinancing rental properties who want qualification based on property cash flow rather than personal income.
Potential Benefits
- Qualify based on property rental income — not personal income
- No W-2s or tax returns required for qualification
- Purchase and refinance options available
- Long-term rental and eligible short-term rental properties
- LLC vesting allowed where permitted
- Cash-out refinance for portfolio growth
- Available for new and experienced investors
Important Considerations
- DSCR of 1.20+ typically preferred (varies by program)
- Larger down payment than conventional (often 20–25%+)
- Reserves required
- Prepayment penalties may apply on some programs
DSCR Estimator
Estimate a property's debt service coverage ratio. Educational only — not an approval or quote.
Estimated DSCR
1.36
Strong — many programs look for a DSCR of 1.20 or higher.
This estimate is for educational purposes only and does not constitute a loan approval, rate quote, or commitment to lend. Qualification is subject to program requirements and underwriting.
FAQs
Next Step
Talk to Kahren Oxner
Founder & CEO
Connect with Kahren to review eligibility, structure, and next steps.