Turn Your Rentals into Revenue
Leverage your property’s income to qualify for a DSCR loan—no tax returns, no income verification. Just simple, hassle-free rental property financing that pays for itself.
What is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is a financing solution designed for rental property investors. Unlike traditional loans that rely on personal income verification, DSCR loans focus on the property’s cash flow, allowing investors to qualify based on rental income rather than their personal financials.
Why Choose a DSCR Loan?
DSCR Loans – Smart Financing for Rental Property Investors
✅ No Tax Returns or W-2s Required – Qualify based on your property’s income, not personal earnings.
✅ Flexible Loan Terms – Choose from fixed-rate or adjustable-rate options to match your investment strategy.
✅ True Cash Flow-Based Lending – Approval is based on your property’s ability to cover the mortgage, not your DTI.
✅ Fast & Hassle-Free Approval – Streamlined underwriting means less paperwork and quicker closings.
✅ Scalable Financing – Ideal for investors looking to expand their rental portfolios with multiple properties.
✅ Competitive Interest Rates – Get affordable rates tailored to investment properties.
How Does a DSCR Loan Work?
DSCR loans are approved based on the Debt Service Coverage Ratio (DSCR)—the ratio between your rental income and your mortgage payment. Lenders use this ratio to determine if the property generates enough income to cover the loan.
Example:
- If your rental property generates $3,000 per month in rent
- And your mortgage payment (including principal, interest, taxes, and insurance) is $2,500 per month
- Your DSCR = 1.2 (which shows the property generates more than enough income to cover the loan)
Most lenders require a DSCR of 1.0 or higher, meaning your property must at least break even. Some lenders offer financing with a DSCR below 1.0 if you meet other qualifying factors.
DSCR Loan Requirements
To qualify for a DSCR loan, most lenders require:
✔ Minimum DSCR – Typically 1.0 or higher (some lenders accept lower with compensating factors).
✔ Minimum Credit Score – 680+ (lower scores may require higher down payments).
✔ Down Payment – 20% to 25% (varies based on credit and property type).
✔ Property Type – Must be an income-generating rental property (single-family, multi-family, condos, or short-term rentals).
✔ Loan Amount – Typically starts at $100,000 and can exceed $2M for qualified borrowers.
✔ Cash Reserves – Some lenders require 3-6 months of reserves to cover mortgage payments.
✔ Property Appraisal – Required to confirm rental income potential and property value.
Who Should Use a DSCR Loan?
🔹 Real estate investors looking to grow their rental portfolio.
🔹 Self-employed or business owners without traditional income documentation.
🔹 Seasoned investors who want a hassle-free loan process without personal income verification.
🔹 First-time investors needing flexible lending solutions.
Why Work with Supreme Home Financing?
At Supreme Home Financing, we help real estate investors secure fast, flexible DSCR loans so they can acquire, refinance, and scale their rental portfolios with ease. With our streamlined process, you focus on building wealth—we handle the financing.