08 · Loan Program

DSCR Loans

Investment property financing where the property's rental income qualifies the loan — not your personal income, employment, or tax returns.

Who a DSCR Loan Is For

Real estate investors acquiring long-term rental properties, short-term rentals, and small multifamily assets
Investors with strong portfolios but complex or limited personal income who cannot qualify through traditional DTI analysis
Buyers scaling a rental portfolio who need a qualification method that doesn't count against personal DTI
Investors purchasing under an LLC or entity structure — many DSCR programs allow business entity vesting

How It Works

From first conversation
to closing day.

DSCR Calculation

Lenders divide the property's gross monthly rent by the monthly PITIA (principal, interest, taxes, insurance, association fees). A ratio of 1.0 means rent covers the payment exactly.

Rent Documentation

For occupied properties, the existing lease is used. For vacant properties, a market rent analysis from the appraiser establishes the qualifying rent figure.

No Income Verification

No tax returns, no W-2s, no employment verification. The underwriter focuses entirely on the property's income relative to its debt service.

Closing

DSCR loans close in 21–30 days. Most allow cash-out refinance on existing rentals, LLC vesting, and multiple concurrent loans for portfolio growth.

Key Benefits

What makes this program
work for the right borrower.

No Personal Income Required

Qualification is based entirely on property cash flow. Investors with high write-offs, multiple entities, or unconventional income structures are no longer disqualified.

Scale Without DTI Limits

Because personal income isn't used, each new DSCR property doesn't increase your DTI. Investors can build portfolios of 10, 20, or more financed rentals.

LLC Vesting Allowed

Many DSCR programs permit the property to be titled in an LLC or trust, allowing investors to operate within proper entity structures without losing financing access.

Requirements Snapshot

Quick-reference guidelines.

Minimum Credit Score	620 minimum; 680+ for best pricing and highest loan amounts
DSCR Minimum	1.0x required on most programs; some lenders allow 0.75x DSCR with higher down payment
Down Payment	20% minimum for purchase; 25%+ for cash-out refinance
Property Types	Single-family, 2–4 unit, condos, short-term rentals; commercial excluded
Primary Residence	Cannot be used for primary residence; investment and rental properties only

Edge Home Finance, LLC • NMLS #891464 • 5860 Baker Road, Minnetonka, MN 55345

Equal Housing Opportunity Lender. This is not a commitment to lend. All loans subject to credit approval.

Licensed in: Georgia and Florida • NMLS Consumer Access: www.nmlsconsumeraccess.org • Licensing & Disclosures

Equal Housing Opportunity