DSCR Loans — No Income Verification, No Tax Returns
Investment property loans that qualify on rental income, not yours. Calculate your DSCR ratio and see if your property cash flows enough to get approved.
Nate Jones · NMLS #304056 · New American Funding
A DSCR loan (Debt Service Coverage Ratio loan) lets real estate investors qualify based on a property's rental income rather than personal income or tax returns. A DSCR ratio of 1.25 or higher typically qualifies for the best rates. Nate Jones (NMLS #304056) at New American Funding specializes in DSCR loans for investors in 48 states.
Property Details
Your Results
DSCR Ratio
1.05
Borderline — May Qualify
Net Operating Income
$2,200/mo
Monthly Payment
$2,098/mo
Monthly Cash Flow
+$102/mo
Cash-on-Cash Return
1.2%
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DSCR Loan Rates — What to Expect in 2026
Let's talk real numbers. DSCR loan rates typically run 1-2% above what you'd see on a conventional investment property loan. In 2026, that puts most borrowers in the 7.5-9% range depending on the deal.
Why the premium? You're trading documentation for convenience. No tax returns, no W-2s, no employment verification — that flexibility comes at a cost, but for most investors the math still works.
Your actual rate depends on a few things. A DSCR ratio above 1.25 gets you better pricing. Credit scores above 740 unlock the lowest rate tiers. Lower LTV (meaning more money down) helps too.
Property type matters as well. A single-family long-term rental in a strong market will price better than a short-term rental condo in a tourist town. Lenders see less risk in stable, predictable cash flow.
I price DSCR loans every day — send me your deal and I'll tell you exactly where you land.
DSCR Loan Pros and Cons
Pros
- ✓ No personal income verification required
- ✓ Qualify based on property cash flow
- ✓ Works for self-employed and W-2 borrowers equally
- ✓ Can close faster than conventional investment loans
- ✓ No limit on number of properties financed
Cons
- ✗ Rates 1-2% higher than conventional
- ✗ Typically requires 20-25% down
- ✗ Property must cash flow at 1.0+ DSCR to qualify
- ✗ Short-term rentals require documented history
- ✗ Not available for owner-occupied properties
DSCR Loan Interest Rates by Credit Score
Your credit score is one of the biggest levers on your DSCR loan rate. Here's how it breaks down.
760+ Credit Score
Best pricing available. You're getting the lowest rate premium and the most favorable terms across the board.
720–759 Credit Score
Standard pricing. Still competitive rates — this is where most of my experienced investors land.
680–719 Credit Score
Moderate rate adjustment. You'll see a bump in rate, but still plenty of solid programs available.
660–679 Credit Score
Higher rate premium. Fewer lender options, but deals still get done — especially with a strong DSCR ratio.
Below 660 Credit Score
Limited options and higher rates. If you're here, let's talk — there may be better loan products for your situation.
DSCR Loans in Florida
Florida is one of the strongest DSCR markets in the country — and it's not hard to see why. Between year-round tourism, population growth, and strong rental demand, properties in Miami, Tampa, Orlando, and Jacksonville consistently cash flow.
Short-term rentals near the coast and theme parks perform especially well on DSCR analysis. Long-term rentals in growing metro areas like Tampa and Jacksonville offer stable, predictable income that lenders love.
No state income tax is a bonus for out-of-state investors looking to maximize returns. I close DSCR loans across Florida every month.
DSCR Loans in Texas
Texas is a DSCR powerhouse. Dallas, Houston, Austin, and San Antonio all have the rental fundamentals that make DSCR loans work — strong job growth, population influx, and affordable housing relative to the coasts.
No state income tax means your cash flow goes further here than in most other states. That translates directly into better DSCR ratios and more favorable loan terms.
Whether you're buying a duplex in San Antonio or a portfolio of single-family rentals in the DFW suburbs, DSCR financing makes scaling your Texas portfolio straightforward. Let's run the numbers on your next deal.
DSCR Loan FAQ
What is a DSCR loan calculator?
A DSCR loan calculator helps real estate investors determine whether a property's rental income covers the mortgage payment. Enter the monthly rent and debt payment to get your ratio instantly.
What DSCR ratio do I need to qualify?
Most lenders require a minimum DSCR of 1.0, meaning rent exactly covers the payment. A ratio of 1.25+ gets you the best rates.
What are current DSCR loan rates?
DSCR loan rates typically run 1-2% above conventional investment property rates. In 2026 that means roughly 7.5-9% depending on your credit and LTV.
Can I get a DSCR loan in Florida or Texas?
Yes. Nate closes DSCR loans in 48 states including Florida and Texas — two of the strongest rental markets in the country.
What are the pros and cons of a DSCR loan?
The main pro is qualifying on rental income alone — no W-2s or tax returns needed. The main con is rates running slightly higher than conventional.
Like What You See?
Nate can walk you through your specific numbers. Free, no credit pull.
Common Questions
What DSCR ratio do I need to qualify?
Nate answers in 90 seconds
Can I use projected rent on a vacant property?
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Ready to See What You Qualify For?
Free review. No credit pull. Nate responds same day.