DSCR Loans
For Rental Properties
Perfect for the BRRRR strategy. Qualify based on the property's rental income rather than your personal income. No personal income documentation (W-2s, tax returns) is typically required; lender requirements vary. Credit, reserves, the appraisal and rent schedule, and entity documents are typically still required.
No W‑2s Typically Required
Qualification is based on the property's rental income; lender requirements vary.
30‑Year Fixed
Long‑term financing available
Cash‑Out Refinance
Pull equity for your next deal
Loan Details
The BRRRR Strategy
Buy
Purchase an investment property with hard money financing.
Rehab
Complete renovations to increase property value.
Rent
Place quality tenants and establish rental income.
Refinance
Refinance with a DSCR loan based on rental income.
Repeat
Use cash‑out refinance proceeds for your next deal.
What is DSCR?
DSCR compares a rental property's gross monthly rent to its monthly debt service, known as PITIA: principal, interest, property taxes, hazard insurance, and HOA dues (if any).
DSCR = Monthly Rent ÷ Monthly Debt
A DSCR of 1.0 means the property's rental income covers 100% of the debt. Higher ratios may qualify for better rates.DSCR Calculator
Estimate your property's Debt Service Coverage Ratio.
Property Income
Calculation Breakdown
Most DSCR lenders require a minimum ratio of 1.0–1.25.
Debt Service
Notes
This calculator provides an estimate. Final DSCR qualification can vary by lender and may include taxes, insurance, HOA, reserves, and property type adjustments.
Talk to a Loan SpecialistFrequently Asked Questions
What is a DSCR loan?
A DSCR (debt service coverage ratio) loan is a business-purpose loan for rental property. With many programs, qualification is based mainly on whether the property's rental income covers its monthly costs, rather than on your personal income. Investors commonly use DSCR loans for long-term rentals and growing portfolios.
How is DSCR calculated?
For residential rental loans, DSCR is commonly calculated as monthly rent divided by monthly PITIA: principal, interest, taxes, insurance, and association dues. A ratio above 1.0 means the rent covers those costs with room to spare. Each lender sets its own minimum, and how lenders calculate it can vary.
Do I need to show personal income for a DSCR loan?
With many programs, qualification is based mainly on the property's income rather than your personal income. Documentation requirements still vary by lender, so expect to share information about your credit, assets, and the property. We help you understand what lenders we work with may ask for.
Can I get a DSCR loan if I live out of state?
Often, yes. Many lenders we work with finance out-of-state investors. Program availability varies by lender, property, and location, so tell us where the property is and where you live, and we'll look for lenders we work with whose guidelines may fit your deal and your situation.
Can I refinance a hard money loan into a DSCR loan?
Often, yes. Many investors buy and renovate with short-term financing, then refinance into a DSCR loan once the property is rented. This is a common step in the BRRRR strategy. Eligibility depends on the lender, the property, and your file.
Can I use a DSCR loan for a short-term rental?
It varies by lender. How short-term rental income is treated varies by lender, and local short-term rental rules can differ from one city or county to the next. Tell us about the property and your rental plan, and we'll look for lenders we work with whose guidelines may fit.
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SpaceCoast Unlimited is a loan broker, not a lender. All loans subject to lender approval. Business-purpose loans only.