Finance an investment property based on rental income with a DSCR loan.
No pay stubs or W-2s needed- Build a portfolio of properties
- A simpler way to finance investment properties
Why choose AmeriSave for a DSCR loan?
Competitive Rates
Get a lower rate than other investment loans to save on monthly payments.
Simple Qualification
Better pricing and loan-to-value (LTV) limits with a DSCR ratio of 1.00 or higher.
Maximum Flexibility
Loan amounts from $100K to $1.5M for purchase, refinance, or cash-out refinances.
Trusted Expertise
Over 730K clients. 23 years’ experience. One goal: helping you build a brighter future.
Smarter technology. Real numbers.
Get Personalized Loan OptionsSee your best loan options with technology that analyzes your finances in real time.
Flexible Loans And TermsPick the right loan and term that helps you achieve your unique homeownership goals.
Close Your Loan QuicklyGet approved and funded quickly, so you can enjoy your new financial freedom.
Get Personalized Loan Options
See your best loan options with technology that analyzes your finances in real time.
Flexible Loans And Terms
Pick the right loan and term that helps you achieve your unique homeownership goals.
Close Your Loan Quickly
Get approved and funded quickly, so you can enjoy your new financial freedom.
Investment property financing that qualifies on cash flow.
DSCR loans use the property's rental income, not your personal income, to qualify. The Debt Service Coverage Ratio measures whether the rent covers the mortgage payment.
Identify The Investment Property
DSCR loans require an investment property; single-family rental, multi-family up to four units, or short-term rentals in eligible markets.
Calculate The DSCR
Divide the property's monthly rental income (actual or market-based) by the proposed mortgage payment. Most DSCR programs require a 1.0 to 1.25+ ratio.
Close Fast, No Income Documents
Without tax returns and W-2s to verify, DSCR loans can close in weeks rather than months, even for borrowers with complex income.
Scale Your Portfolio
Each property qualifies on its own merits, so DSCR loans don't cap your portfolio size by personal DTI like conventional loans do.
The property pays for itself.
A DSCR of 1.0 means the property's rent exactly covers the mortgage payment. Most programs require 1.0 to 1.25+, meaning the property's rental income is at least equal to its housing cost.
When A DSCR Loan Fits
DSCR loans were designed for the realities of real estate investing where the property is the asset, and its income is what matters.
Scaling A Rental Portfolio
Investors with multiple properties often hit conventional loan limits or DTI ceilings; DSCR loans qualify each property on its own cash flow.
Self-Employed Real Estate Investors
Borrowers whose tax returns show low net income (after deductions) but who have strong cash flow can still qualify.
BRRRR Strategy
Buy, rehabilitate, rent, refinance, repeat; DSCR loans support the refinance step without tax-return-based qualification.
Short-Term Rental Investors
DSCR programs increasingly accept projected short-term rental income for properties in eligible markets.
DSCR Loan Requirements
DSCR qualification is property-driven, not income-driven, but specific thresholds must be met.
The property's monthly rental income (actual or market-based) divided by the proposed mortgage payment, typically 1.0 to 1.25+ depending on program.
620–680+ typical, depending on the program and down payment.
20–25% minimum for most programs; can be higher for short-term rentals or certain property types.
Often 3–6 months of mortgage payments in liquid assets at closing.
DSCR vs. Conventional Investment Property Loan
DSCR (Debt Service Coverage Ratio) loans qualify on the property's cash flow instead of your personal income - a fundamentally different approach to investment property financing.
Pros And Cons of A DSCR Loan
DSCR loans unlock investment property financing for borrowers who don't fit conventional underwriting, but flexibility comes at a price.
What Works In Your Favor
No Personal Income Documentation
Tax returns, W-2s, and DTI calculations don't factor in; the property's cash flow is what qualifies.
Faster Qualification
Less documentation to gather, verify, and underwrite.
Scalable Across Portfolios
Each property qualifies on its own merits; portfolio size isn't capped by personal DTI.
Works For Entities
Many DSCR programs lend to LLCs, partnerships, or trusts; useful for asset protection and tax planning.
Flexible Property Types
Single-family rentals, multi-family up to four units, short-term rentals; wider property type acceptance.
What To Weigh Carefully
Higher Interest Rates
Typically 0.5 to 1.5 percentage points above conventional investment property rates; the spread widens for short-term rentals, lower DSCR ratios, or weaker credit.
Larger Down Payment
20–25% minimum is standard; some property types require more.
DSCR Threshold Required
The property's rental income must cover the mortgage payment by a minimum ratio (typically 1.0–1.25).
Prepayment Penalties Common
Many DSCR programs include prepayment penalties to protect the lender's yield.
Not For Primary Residences
DSCR loans are strictly for investment properties.
Frequently Asked Questions
A DSCR loan is a type of mortgage for investment properties that looks at the property's rental income instead of the borrower's personal income, tax returns, or work history to see if they qualify. Continue Reading...
We divide your property’s monthly rental income by its monthly mortgage payment (including taxes and insurance). A ratio of 1.00 or higher indicates that the property generates enough income to cover its expenses.
Yes. While additional requirements apply, we welcome short-term rental properties and can help structure your loan appropriately.
You’ll need a minimum FICO score of 680 to qualify for an AmeriSave DSCR loan.
Absolutely. We can close your loan under your business entity if you own at least 50% of the LLC.