Everything you need to know about DSCR loans — what they are, how to qualify, what the ratio means, and how to use them to build a rental portfolio without W2 income.
A DSCR loan — Debt Service Coverage Ratio loan — is a type of investment property mortgage that qualifies borrowers based on the property's rental income rather than the borrower's personal income. No W2 required. No tax returns. No pay stubs. Your property's cash flow is the qualifier.
This makes DSCR loans the preferred financing tool for self-employed investors, full-time landlords, and anyone whose personal income doesn't reflect their actual financial strength.
If the property generates enough rental income to cover the mortgage payment — you qualify. That's it. Your personal income doesn't enter the equation.
DSCR stands for Debt Service Coverage Ratio. It's a simple formula:
Most lenders require a minimum DSCR of 1.0x to 1.25x. At LendingStreet our minimum is 1.0x — meaning the rent just needs to cover the mortgage. We also offer a No Ratio DSCR program with no minimum at all.
This is where DSCR loans differ dramatically from conventional mortgages. You do NOT need:
What you typically DO need:
Yes — and this is one of the biggest advantages of DSCR loans. Conventional mortgages require the loan to be in your personal name. DSCR loans allow you to hold the property in an LLC or other business entity from day one, providing liability protection and cleaner business accounting.
As few as 10 days. Conventional bank loans take 30–45 days. DSCR loans are streamlined — no income verification means fewer documents and a faster process. Our record is 7 business days from application to funded.
If your property doesn't cash flow at 1.0x — or if your income is too complex to document — our No Ratio DSCR program removes the income requirement entirely. No DSCR minimum. No income docs. Just 640+ credit and up to 85% LTV. Not available in NY or VT.
| Requirement | Conventional | LendingStreet DSCR |
|---|---|---|
| W2 / Pay Stubs | Required | Not Required |
| Tax Returns | 2 Years Required | Not Required |
| Close in LLC | Not Allowed | Allowed |
| Time to Close | 30–45 Days | As Few as 10 Days |
| Qualification Basis | Personal Income | Property Cash Flow |
No credit pull required. Tell us about your property and we'll have terms for you within 24 hours.
Check My Eligibility →No credit pull. No obligation. Investment property only. Our loan specialists respond within a few hours.