Non-QM · Real estate investors
DSCR loans: let the rent do the qualifying.
Building a rental portfolio? A DSCR loan looks at whether the property pays for itself, not at your W-2. DSCR loans for investors in Texas, Tennessee, and states where this business-purpose loan doesn't require a personal license.
What is a DSCR loan?
A DSCR loan is an investor mortgage that qualifies mainly on the rental property's income rather than your personal income. DSCR stands for debt service coverage ratio: the property's rent divided by its monthly payment, including taxes, insurance, and HOA. They're business-purpose loans for investment properties, not homes you live in.
How is DSCR calculated?
DSCR compares the property's monthly rent to its full monthly housing payment: principal, interest, taxes, insurance, and any HOA (PITIA). When the rent covers the whole payment with room to spare, the property is pulling its own weight. Lenders set their own standards and decide how to count rent, often from a lease or an appraiser's rent schedule.
Run yours: DSCR calculator.
Can I close in an LLC?
Many DSCR programs allow you to close in an LLC, which some investors prefer. Requirements for the entity, personal guarantees, and documentation vary by lender. Talk to your attorney or CPA about the right structure for you; I'll handle the loan side.
Planning to buy in an entity? Tell me up front so the loan, title, and entity paperwork line up from the start.
Which states?
I do DSCR loans in Texas and Tennessee, where I'm personally licensed, and in states where this business-purpose loan doesn't require a personal license. If your rental is somewhere else, reach out anyway, because through GoRascal there may still be a way to help. Ask before you go under contract so there are no surprises.
What should I have ready?
Have the property address, purchase price or estimated value, current or expected rent, and your experience as an investor ready. A lease, if there is one, helps. Expect an appraisal with a rent schedule. Lenders also look at your credit, savings, and down payment.
Every property and investor is different. Send me the address and the rent and I'll tell you which options fit.
DSCR loans are business-purpose loans for investment property only, not for owner-occupied homes. Also available in states where this loan doesn't require a personal license; ask about your state. For illustration only. Not a commitment to lend, a Loan Estimate, or an offer of credit. Your actual figures depend on your full application, credit approval, property, and the loan program. John Stafford NMLS #2470539 | GoRascalJohn powered by GoRascal Inc. NMLS #2072896. Equal Housing Opportunity.
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Common questions
Can I use a DSCR loan for a home I'll live in?
No. DSCR loans are business-purpose loans for investment properties only.
Do DSCR loans check my income?
They qualify mainly on the property's rent compared to its payment instead of your personal income. Lenders still review credit, assets, and the property.
What's a good DSCR?
Generally, the more comfortably the rent covers the full payment, the better. Each lender sets its own standards, so send me the numbers and I'll tell you where your property stands.
Do you do DSCR loans in my state?
I'm personally licensed in Texas and Tennessee, and I also do DSCR loans in states where this business-purpose loan doesn't require a personal license. If your property is somewhere else, reach out anyway, because through GoRascal there may still be a way to help.
Do DSCR loans have prepayment penalties?
Many do, and terms vary by lender and state. Look for the Prepayment Penalty line on your loan documents and ask about options.
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Send me your Loan Estimate and I'll look it over myself. I'll tell you straight what looks off, what looks fine, and whether I can do better. If your offer is solid, I'll say so.
Before you send it: cover your Social Security number and loan number. Texas and Tennessee loans. John Stafford NMLS #2470539 | GoRascalJohn powered by GoRascal Inc. NMLS #2072896.