DSCR Loans for Real Estate Investors
A Debt Service Coverage Ratio (DSCR) loan is designed specifically for real estate investors. Instead of qualifying based on your personal income, lenders evaluate whether the property’s rental income is sufficient to cover the mortgage payment. This allows investors to qualify more easily while expanding their rental portfolio.
Whether you are purchasing your first rental or growing a portfolio of investment properties, DSCR financing provides a flexible solution with less documentation than traditional mortgages.
Property Types We Finance
- Single Family Rentals
- Duplexes
- Triplexes
- Fourplexes
- Condominiums
- Townhomes
- Vacation Rentals (eligible markets)
- Mixed-use properties (some lenders)
Benefits
✓ No personal income verification
✓ Qualify using rental income
✓ LLC ownership available
✓ Purchase or refinance
✓ Cash-out refinance available
✓ Finance single-family and multi-family properties
✓ Flexible loan terms
✓ Competitive rates
✓ Build your investment portfolio faster
Qualification Requirements
- Minimum credit score 660 (varies by lender)
- Property must generate sufficient rental income
- Down payment typically 20–25%
- Real estate investment property
- Cash reserves may be required
- Appraisal required
Required Documents Needed
Real Estate Loan Application 1003
3 Months of Bank Statements
Purchase Agreement (if buying)
Recent Mortgage Statement (refi)
Recent Credit Report
Copy of Appraisal (if available)
Driver’s License
Voided Check
DSCR Loan Process
- Submit your application
- Review your investment goals
- Match you with the right lender
- Property appraisal
- Underwriting
- Loan approval
- Closing
Why Choose Star Rich Funding?
- Access to multiple private lenders
- Competitive investor loan programs
- Fast approvals
- Personalized service
- Financing nationwide
- Experienced in investment property lending
Frequently Asked Questions
What does DSCR mean?
Debt Service Coverage Ratio measures whether the property’s rental income covers its mortgage payment.
Do I have to provide tax returns?
Most DSCR loans do not require personal tax returns or W-2s.
Can I buy it through my LLC?
Yes. Many DSCR lenders allow investment properties to be purchased in an LLC.
Can I refinance?
Yes. Purchase, rate-and-term refinance, and cash-out refinance options are available.
Is there a limit on the number of rental properties?
Many lenders allow multiple financed investment properties.
Can first-time investors qualify?
Yes, depending on the lender and overall qualifications.
Please Note: Loan programs, rates, terms, down payment requirements, eligibility, and approval timelines vary by lender and borrower qualifications. Contact Star Rich Funding to discuss available financing options for your investment property.
Ready to grow your rental portfolio?
Contact Star Rich Funding today for a free DSCR loan consultation and personalized financing options
Disclaimer
Loan programs, interest rates, terms, and qualification requirements vary by lender. All financing is subject to lender approval, underwriting guidelines, and applicable laws. Star Rich Funding is a loan broker and does not directly fund loans.
Real estate financing is subject to property review, borrower qualifications, and lender underwriting guidelines.