Buy or refinance rental property without using personal income

A DSCR loan helps real estate investors qualify based on the property’s rental income — not W-2 income, tax returns, or traditional DTI.

At Transcend Mortgage, we help investors structure DSCR financing for rental properties, short-term rentals, multi-family properties, and portfolio growth.

Call: 617-892-9679
Get a DSCR Quote

What Is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio.

Instead of asking, “How much personal income do you make?” the lender asks:

Does the rental income support the mortgage payment?

DSCR loans are commonly used by real estate investors because many investors have complex income, write-offs, LLC ownership, or multiple properties. DSCR programs typically focus on property cash flow rather than personal tax-return income.

Good Fit For

DSCR loans may be a good option if you are:

• Buying a rental property
• Refinancing an investment property
• Pulling cash out from rental property equity
• Self-employed with high tax write-offs
• Buying under an LLC
• Expanding beyond conventional loan limits
• Investing in single-family, condo, 2–4 unit, or multi-family rentals

Common DSCR Loan Highlights

Program guidelines vary by lender, but common features include:

• No personal income verification
• No tax returns required for income qualification
• Rental income used to qualify
• LLC ownership may be allowed
• Purchase, rate-term refinance, or cash-out refinance
• Long-term rental and some short-term rental options
• Available for experienced and first-time investors

Some DSCR lenders may require minimum credit score, down payment/equity, reserves, property condition, and acceptable DSCR ratio.

How DSCR Is Calculated

DSCR = Monthly Rental Income ÷ Monthly PITIA

PITIA means:

• Principal
• Interest
• Taxes
• Insurance
• Association dues, if any

Example:

Rental income: $3,000/month
Estimated mortgage payment: $2,500/month

DSCR = 1.20

That means the property brings in 20% more rental income than the estimated housing payment.

Why Investors Work with Transcend Mortgage

Most lenders quote a rate. We help you structure the deal.

We look at:

• Purchase price
• Estimated rent
• Down payment
• DSCR ratio
• Cash-out strategy
• LLC ownership
• Short-term vs long-term rental use
• Exit strategy
• Whether the property truly makes sense as an investment

Our goal is not just to close the loan — it is to help you avoid buying a bad deal.

DSCR Loan Uses

Purchase a Rental Property

Use rental income to qualify instead of personal income.

Refinance an Existing Rental

Improve your loan structure or move out of short-term/private financing.

Cash-Out Refinance

Access equity to buy more properties, renovate, or improve liquidity.

Build a Portfolio

DSCR loans can be useful when traditional conventional financing becomes limited.

Important: DSCR Loans Are for Investment Properties

DSCR loans are generally designed for business-purpose investment properties, not primary residences. Consumer mortgage rules such as ATR/QM apply broadly to consumer-purpose residential mortgage loans, while business-purpose investment-property financing may be treated differently depending on the transaction.

Start With a DSCR Scenario Review

Send us:

• Property address
• Purchase price or estimated value
• Estimated rent
• Down payment or current loan balance
• Credit score estimate
• Purchase or refinance goal

We will review the numbers and tell you whether the deal is likely to qualify.

Call: 617-892-9679
Email: loans@transcendmortgage.com
Apply Now

FAQ

Do DSCR loans require tax returns?

Usually no. DSCR loans typically qualify based on rental income and property cash flow, not personal tax-return income.

Can I buy under an LLC?

Many DSCR programs allow LLC ownership, subject to lender guidelines.

Can I use DSCR for a primary residence?

No. DSCR loans are generally for investment properties.

Do I need lease income?

Some programs may use current lease income. Others may use market rent from the appraisal, depending on the property and lender.

Is the rate higher than a conventional loan?

Usually yes. DSCR loans offer more flexibility, but pricing is often higher than traditional agency loans.

Compliance Footer

Loan programs, rates, terms, and guidelines are subject to change without notice. Not all borrowers or properties will qualify. DSCR loans are intended for business-purpose investment properties and are not for owner-occupied primary residences. This is not a commitment to lend. Equal Housing Opportunity. Transcend Mortgage Inc. NMLS #1499726. Dan Tran NMLS #371041.