Investors · Florida
DSCR investor loans
Conventional financing punishes successful investors. Write off enough depreciation and your tax return says you barely earn anything; own enough doors and you hit a financed-property limit. A DSCR loan sidesteps both, because the property qualifies — not you.
What is a DSCR loan?
A DSCR loan qualifies an investment property on its rental income instead of your personal income. The lender divides gross monthly rent by monthly PITIA — principal, interest, taxes, insurance and association dues. No tax returns, W-2s or debt-to-income calculation is required, and a ratio of 1.25 or higher reaches the best pricing tier.
The only calculation that matters
The lender divides the property's gross monthly rent by its total monthly PITIA — principal, interest, taxes, insurance and association dues. That quotient is your debt-service coverage ratio. At 1.00 the property exactly covers itself. Above that it is producing surplus, and pricing improves as the ratio climbs.
1.25 or higher
The tier where pricing gets genuinely competitive and lenders will stretch on loan-to-value.
1.00 – 1.24
The property covers its own debt service. Approvable with a modest rate add-on.
0.75 – 0.99
Still placeable, usually with a larger down payment and a rate add-on.
Below 0.75
Moves to a no-ratio program — the ratio is set aside entirely in exchange for more equity.
Next step
Find out if this fits your file
Five minutes, no credit pull to start, and a straight answer from a licensed loan officer.
Straight answers
Frequently asked
Can you get a mortgage without tax returns?
Yes, on an investment property. A DSCR loan qualifies the property on its rental income rather than your personal income, so no tax returns, W-2s, pay stubs or debt-to-income calculation are required. Title may also be held in an LLC.
What DSCR ratio do lenders want?
A ratio of 1.25 or higher reaches the best pricing and the most generous loan-to-value. Between 1.00 and 1.24 the property covers its own debt service and is approvable with a modest rate add-on. Below 1.00 is still placeable with a larger down payment, and under roughly 0.75 the file usually moves to a no-ratio program.
What is the catch with a DSCR loan?
Two things. The rate is higher than agency financing, because the lender is underwriting a property instead of a person. And most DSCR loans carry a prepayment penalty for the first few years, which matters a great deal if you plan to sell or refinance quickly. Both vary substantially between lenders.
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