DSCR / Loans for Investment Properties
DSCR loans qualify based on your rental property's cash flow, not your personal income. With no tax returns required, credit scores as low as 600, and qualification based on a 1.0-1.25 debt service coverage ratio, these loans allow real estate investors to build portfolios without traditional income verification or property count limits.
What is DSCR?
Breeze DSCR is a program that allows homeowners or homebuyers who want low documentation requirements. Credit scores as low as 600. In simple terms, DSCR is a loan for property investors who own rental properties and prefer to qualify based on the cash flow of the property. With most of these rental property loans, the property's cash flow is the key element in qualification. The property's monthly rental income needs to earn enough, or in many cases almost enough to cover its monthly income covers its principal, interest, taxes and insurance.
However, we even help you fund DSCR loans that allow you to be upside down on the rent vs the payment if there is sufficient equity.
Call us about our purchase DSCR loans, refinance DSCR loans, and cash-out refinance DSCR loans.
- One of the best types of loan for rental property
- Lower cost alternative to hard money loans
- Loan terms are 30 year fixed
- Best Investment Property lenders
- Investment property loans with no income verification
- Perfect for investors who don't have time to get bogged down with over-documentation
- Ideal for borrowers wanting low doc loans, no doc loans, or no ratio loans
- DSCR can be used for purchase loans
- Great for investment property loans for llc
Simple Qualification Criteria
- Middle Credit Score of 600
- Loan to Values of up to 80%
- Some recent mortgage lates ok
- Loan available for long term rentals or short term Air BnB rentals
- Rural properties ok
- Even if you had a loan modification, you may still qualify
Our investor loans helps more homeowners as the rules are not as restrictive. Think you qualify and want to get some cash?
People Also Ask
What credit score do I need for a DSCR loan?
Minimum credit scores start at 600 for DSCR loans, though 680+ gets better rates. Unlike conventional investment property loans requiring 720+, DSCR loans are accessible to more investors. Your property's cash flow matters more than your personal credit score.
Can I use a DSCR loan if the property has negative cash flow?
Yes, in some cases. If you have sufficient equity (typically 30%+), some lenders will approve DSCR loans even when rent doesn't fully cover the mortgage payment. We'll evaluate your specific situation and find the right lender.
Do DSCR loans work for short-term rentals like Airbnb?
Yes! Many DSCR lenders now accept short-term rental income from Airbnb, VRBO, and similar platforms. We'll use your actual rental income history or market rent analysis to qualify the property's cash flow.
What's better: DSCR loan or hard money loan?
DSCR loans are superior for long-term holds: 30-year fixed rates (7-9% vs 10-14% hard money), no prepayment penalty, and lower closing costs. Hard money is better only for quick fix-and-flip projects under 12 months.
Investment Loan Key Terms
- DSCR (Debt Service Coverage Ratio)
- The ratio of a property's rental income to its debt payments. A 1.0 DSCR means rent exactly covers the mortgage. 1.25 DSCR means rent is 125% of the payment, providing a cash flow cushion.
- No-Doc Loan
- Mortgage that doesn't require tax returns, pay stubs, or W-2s. Qualification is based on property cash flow and credit score. Ideal for self-employed investors or those with complex income structures.
- Cash-Out Refinance
- Refinancing your investment property for more than you owe and taking the difference in cash. Popular strategy for pulling equity to fund additional investments while maintaining low rates.
- Portfolio Loan
- Loan held by the lender instead of being sold to Fannie Mae/Freddie Mac. Allows more flexible underwriting for investors with multiple properties or unique situations.
- 1031 Exchange
- Tax-deferred strategy where you sell one investment property and purchase another, deferring capital gains taxes. DSCR loans work perfectly with 1031 exchanges for growing your rental portfolio.
DSCR Loans vs Traditional Investment Loans
Which investor loan is right for your portfolio?
| Feature | DSCR Loan | Traditional Investment Loan |
|---|---|---|
| Income Verification | ✓ None required - No tax returns | Full documentation required |
| Qualification | ✓ Based on property cash flow | Based on personal income |
| Credit Score | ✓ As low as 600 | Typically 680+ required |
| Down Payment | 20-25% typical | ✓ 15-25% depending on program |
| Portfolio Growth | ✓ No limit on properties | Limited to 4-10 financed properties |
| Negative Cash Flow | ✓ Allowed with sufficient equity | Not allowed |
| Processing Time | ✓ Faster with less documentation | 30-45 days typical |
| Best For | Self-employed, portfolio investors | W-2 earners with strong income |
Building your rental property portfolio? DSCR loans make it easier to grow without the hassle of traditional income verification.
Explore DSCR Options