DSCR Loan (Investor Mortgage) | CMS Mortgage
Non-QM

DSCR Loan (Investor Mortgage)

"Let the property qualify itself."

No personal income documentation. The property's rental income qualifies the loan. Perfect for real estate investors who want to scale without income verification headaches.

20–25%Min Down
620+Min Credit
$3MMax Loan

Down payment and credit requirements vary by loan program, credit profile, occupancy, and property type. All loans subject to credit approval and program eligibility.

Check My Property → 📞 Talk to an Investor Specialist

Is This Loan Right for You?

✓ This Loan Is Perfect If You...

  • Real estate investor with rental properties
  • Self-employed and prefer no income documentation
  • Want to scale portfolio quickly without limits
  • Property cash flows at 1.0+ DSCR
  • Want LLC protection for asset separation

✕ This Might NOT Be Right If...

  • Purchasing a primary residence
  • Property does not cash flow (negative DSCR)
  • Less than 20% down payment available
  • Need personal income on application

DSCR Loan (Investor Mortgage) Benefits

Everything you need to know about your benefits

No Tax Returns

Skip the income documentation entirely. No W-2s, no pay stubs, no tax returns needed.

No DTI Calculation

Your personal debts don't matter. Only the property's income counts.

Unlimited Properties

No cap on financed properties. Scale your portfolio as fast as you want.

LLC Friendly

Close in your LLC or personal name. Protect your assets with entity ownership.

Fast Closing

No income verification means faster underwriting and quicker closings.

Investor Focused

Designed by investors, for investors. We speak your language.

How It Works

Your path to homeownership in just a few simple steps

We Calculate the DSCR

Monthly rent divided by total monthly payment (principal, interest, taxes, insurance, HOA)

Property Qualifies Itself

If DSCR is 1.0 or higher, the property income covers the loan. You're qualified.

No Income Docs Needed

Skip tax returns, pay stubs, and DTI calculations. The property speaks for itself.

Close Quickly

Faster underwriting means faster closing. Get your investment property sooner.

📊 Understanding DSCR

What is DSCR?

The Formula

DSCR = Monthly Rent ÷ Monthly Payment
(PITIA)

PITIA = Principal + Interest + Taxes + Insurance + Association (HOA).

A DSCR of 1.0 means the rent exactly covers the payment.

Above 1.0 means positive cash flow — you qualify!

Example Calculation

Monthly Rent$2,500
Monthly Payment (PITIA)$2,200
DSCR Calculation$2,500 ÷ $2,200
Your DSCR1.14
Qualified ✓

DSCR Qualification Thresholds

🟢1.25+Excellent
🔵1.0–1.24Qualified
🟡0.75–0.99Limited Options
🔴Below 0.75Does Not Qualify
🧮 Interactive Tool

DSCR Calculator

See if your investment property qualifies

Property Details

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Your DSCR Results

DSCR Ratio 1.13 Qualified
Loan Amount$300,000
Monthly P&I$2,098
Total PITIA$2,648
Monthly Rent$3,000
Est. Monthly Cash Flow+$352

This calculator provides estimates only. Actual rates and terms may vary.

Eligible Property Types

DSCR loans work with most investment properties

✓ Single family rentals
✓ 2-4 unit properties
✓ Condos (warrantable)
✓ Townhomes
✓ 5-8 units (select lenders)
✓ Short-term rentals (select lenders)

DSCR Loan Requirements

Requirement Typical Standard Featured
Minimum DSCR1.0 (some allow 0.75)
Down Payment20-25%
Credit Score620+
Property Types1-4 units, some 5-8
Reserves Required3-6 months PITIA
Income DocumentationNone required

*Rates and terms subject to change. Contact us for current offers.

💬 FAQ

Frequently Asked Questions

Common questions about DSCR Loan (Investor Mortgage)

🕐 Last updated: July 2026

What is DSCR and how is it calculated?
DSCR (Debt Service Coverage Ratio) is calculated by dividing the property's monthly rental income by the total monthly payment (Principal, Interest, Taxes, Insurance, and Association fees). A DSCR of 1.0 or higher means the rent covers the payment, qualifying you for the loan.
Can I get a DSCR loan with no income verification?
Yes! That's the main benefit of DSCR loans. No tax returns, pay stubs, or W-2s are required. The property's rental income is the only income that matters for qualification.
What DSCR ratio do I need to qualify?
Most lenders require a minimum DSCR of 1.0, meaning the rent equals or exceeds the payment. Some lenders offer programs with DSCR as low as 0.75 for strong borrowers.
Can I close a DSCR loan in an LLC?
Yes! DSCR loans are LLC-friendly. You can close in your personal name or an LLC for asset protection. This is a major advantage for real estate investors.
Is there a limit to how many DSCR loans I can have?
No limit! Unlike conventional loans (often capped at 10 financed properties), DSCR loans have no property limit. Scale your portfolio as fast as you want.
What property types qualify for DSCR loans?
Single family rentals, 2-4 unit properties, warrantable condos, townhomes, and some lenders even allow 5-8 unit properties and short-term rentals like Airbnb.

Explore Other Options

Not quite right? Check out these alternatives

View All Loans →

Conventional Loan

The classic choice. No mortgage insurance with 20% down and competitive rates for strong credit.

Learn More →

FHA Loan

Low down payment, flexible credit requirements — a common route for first-time buyers.

Learn More →

VA Loan

Zero down and no monthly mortgage insurance for eligible veterans. VA funding fee may apply.

Learn More →
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DSCR Loans are Available!

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BUY YOUR DREAM HOME WITH LITTLE MONEY DOWN WITH AN DSCR LOAN!

Why an DSCR Loan?

Debt Service Coverage Ratio (DSCR) loans are designed specifically for real estate investors. Instead of verifying personal income through tax returns, W-2s, or pay stubs, lenders evaluate the property's rental income to determine eligibility. This makes DSCR loans an excellent solution for investors looking to expand their rental property portfolio quickly and efficiently.

✅ No Personal Income Verification

✅ Rental Income-Based Qualification

✅ Investment Property Financing

✅ Short-Term & Long-Term Rental Properties

✅ LLC Ownership Eligible

✅ Fixed-Rate & Adjustable-Rate Options

About DSCR Loans

A Debt Service Coverage Ratio (DSCR) loan is a mortgage program created for real estate investors. Rather than focusing on the borrower’s personal income, lenders evaluate whether the property’s rental income is sufficient to cover the monthly mortgage payment and related housing expenses.

DSCR loans simplify the financing process and help investors acquire, refinance, or expand their real estate portfolios without extensive income documentation.

Whether you’re purchasing your first investment property or adding multiple rental units to your portfolio, our DSCR loan specialists can help guide you through every step of the process.

The DSCR Loan Process

Here’s how our home purchase loan process works:

✅ Complete our quick DSCR loan application.

✅ Submit property details and rental income information.

✅ Compare competitive rates and loan terms.

✅ Select the loan program that best fits your needs.

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