If you’ve been thinking about buying an investment property, you’ve probably realized quickly that is it not for everyone.
And I’m not saying that to be negative — I’m saying it because a lot of people jump into investing thinking it’s easy passive income, and then reality hits: repairs, vacancies, taxes, insurance, and tenants who act like your property is disposable.
However, if you already own and you want to start building a rental portfolio, DSCR loans are the way to go, let me break this down and explain exactly how it works and how you can qualify.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio.
And honestly… that’s just a fancy way to say can the property pay for itself every month? That’s it.
A DSCR loan is a mortgage program designed for real estate investors where the bank mainly cares about the property income, not your personal income. So instead of asking “how much do YOU make?”, the lender focuses on these main things-
- What is the monthly rent?
- What is the monthly mortgage payment?
- Does the property break even or cash flow?
Why DSCR Loans Are So Popular Right Now
DSCR loans are blowing up because they’re built for how investors actually buy properties.
Most people trying to buy rentals don’t have the income (on paper) to qualify for multiple mortgages using conventional loans.
Even if you’re doing well financially the conventional loan is not accessible for most investors because it requires:
- paystubs / W2s
- tax returns
- debt-to-income ratio (DTI)
- existing mortgage payments
- limits on number of financed properties
That’s exactly why DSCR loans are so valuable, none of these are involved in the qualification process.
💡 Pro Tip: DSCR Loans do not require personal income to qualify!
Looking for a DSCR mortgage? Click here for a pre-approval consultation.
DSCR Loan Requirements: How You Qualify
No W2’s, no paystubs required, no tax returns (in many cases), and no debt-to-income ratio.
You could make $1,000,000 a year or you could make $0 a year and still qualify for a DSCR program. Because the loan is mainly approved off the rental property’s ability to cover the payment.
DSCR Loan Credit Score Requirements
Okay, so now let’s talk credit scores, what scores do you need to qualify for the DSCR loan? To get the best DSCR loan rates, you’ll typically want 700+ credit score, however you can still get a DSCR loan with lower scores.
Many DSCR lenders go down to 640 credit score minimum to qualify for a DSCR loan. Just keep in mind- the lower the score, the higher the interest rate tends to be.
DSCR Loan Down Payment Requirements
Down payment is another big part of qualifying for the DSCR loan program. Typically, DSCR loans require 15% minimum down payment
But most investors end up doing 20% down or more-
Why? Because it usually improves pricing and helps the property qualify easier since the payment is lowe
Are DSCR Loans Worth It?
Let me be clear, DSCR loans are NOT free money.
You still need, a solid rental property, a decent down payment, closing costs, and reserves (depending on the lender). But if your goal is to build wealth through real estate, DSCR loans can be one of the best tools available because they allow you to scale without your personal income becoming the roadblock.
Questions About DSCR Loan Rates or Payments?
Here at Andes Mortgage we specialize in DSCR loans and
If you want us to run the numbers for you — interest rate, payment, down payment, cash flow — set up free call and we can go over exactly what you can qualify for.
DSCR Loan FAQ (Quick Answers)
Can I get a DSCR loan with no income?
Yes — many DSCR programs do not require personal income verification because qualification is based on property cash flow.
What credit score do you need for a DSCR loan?
Most investors should aim for 700+, but DSCR loans can often be approved with scores as low as 640.
How much down payment do I need for a DSCR loan?
Typically 15% minimum, but most investors put 20%+ down.
Are DSCR loans only for self-employed borrowers?
No, but DSCR loans are extremely popular with self-employed borrowers because they avoid traditional income documentation like paystubs and W2s.
The bottom line
At Andes Mortgage, we specialize in helping self-employed borrowers navigate the mortgage process. Contact us today for personalized guidance and support in securing the loan that’s right for you.
Ready to take the next step? Visit www.andesmortgage.com/apply to get started.
