DSCR Loans — Qualify on Rental Income, Not Your Tax Returns
If the rent covers the payment, you can qualify. No W-2s, no tax returns, no DTI math.
Nate Jones · NMLS #304056 · New American Funding
A DSCR loan (debt service coverage ratio loan) is an investment property mortgage that qualifies you on the property's rental income instead of your personal income. It's the fastest-growing loan type for real estate investors because it removes the two biggest roadblocks to scaling a portfolio: tax-return income that looks small after write-offs, and conventional lending's ten-property cap. Nate Jones (NMLS #304056) at New American Funding closes DSCR loans for investors nationwide.
How a DSCR Loan Works
The lender divides the property's monthly rent by its full monthly payment (principal, interest, taxes, insurance, and HOA). That number is the DSCR. A ratio of 1.0 means the rent exactly covers the payment; 1.25 or higher earns the best rates and terms.
DSCR = Monthly Rental Income / Monthly Debt Service (PITIA)
Example: $2,500/month rent ÷ $2,000/month payment = 1.25 DSCR — qualifies for the best pricing.
DSCR Loan Requirements at a Glance
Min Credit Score
660 (720+ for best rates)
Down Payment
20-25% (15% with 720+ credit)
Min DSCR Ratio
1.0 (1.25+ for best terms)
Income Docs
None required
Property Types
SFR, 2-4 unit, condo, townhome
Rental Types
Long-term, Airbnb, VRBO
Vesting
Personal name or LLC
Property Limit
None — portfolio product
Why Investors Choose DSCR Over Conventional
- ✓Qualify on the property's rent — your tax write-offs don't count against you
- ✓No limit on financed properties (conventional caps you at 10)
- ✓Close in an LLC to protect your personal credit and liability
- ✓Works for short-term rentals — Airbnb and VRBO income counts
- ✓Close in as little as 3 weeks with no income documentation to verify
Watch: What Is a DSCR Loan?
DSCR Loan FAQ
More DSCR Resources
DSCR Loans by State
Local market details, city guides, and the DSCR calculator for every state Nate serves.
See What You Qualify For
Free · No credit pull · About 60 seconds