Who are DSCR Loans built for?
Real estate investors (new or seasoned)
Buyers with high-performing rental properties
Borrowers with non-traditional income or complex finances
Investors looking to grow their portfolio with limited documentation
How DSCR Loans Help You
What is a DSCR Loan?
Whether you’re a first-time investor or expanding your portfolio, DSCR (Debt-Service Coverage Ratio) loans can help you qualify based on your property’s rental income—not your personal income. It’s a flexible path to building long-term wealth through real estate.
A DSCR loan is designed for real estate investors and qualifies borrowers based on a property’s cash flow. Lenders evaluate whether rental income covers the property’s debt obligations—no tax returns, W-2s, or pay stubs required. These loans are a type of non-QM (non-qualified mortgage), ideal for investors who don’t fit into traditional mortgage boxes or investors who want the simplicity, speed and efficiency of these types of loans.
Key Features of DSCR Loans
Qualify based on the property’s rental income
Available for single-family and multi-unit investment properties
Unlimited number of financed properties allowed
Ability to close in an LLC structure
Purchase, refinance, or cash-out refinance options
These loans can still close with properties that don’t fully cash flow or even are vacant
DSCR Loans in practice
Jake is a handyman and often gets paid in cash. He doesn’t show much income on his tax returns. As a matter of fact, he shows losses on his current properties because of the deductions he can take on his Schedule E – rental real estate. Jake finds a gem of a 3-unit property. That said the current leases are below market. They will definitely go up to market at the next renewal and even higher than that with the improvements he will make on the property. After calculating the PITI – he finds that it is higher than the current rents. Jake is still able to buy the property with a DSCR loan as a DSCR ratio below 1 is allowed by the lender. The home was purchased without any problems.
Oscar wanted to buy an investment property with money he just inherited. He is looking for a quick and simple approval process. He also wants to close in an LLC. He went to a local credit union and was told that they cannot close in an LLC. Oscar went to a lender who specializes in DSCR loans. The underwriting process is simple. As long as the principal, interest, taxes and insurance (PITA) is less than the estimate rent, then the loan is approved with the lender’s best rates. He closed in LLC. He is now building wealth through real estate.
How It Works
- Explore Your Options: See if a DSCR loan is right for your investment goals.
- Have a Quick Conversation: Speak with your dedicated Mutual of Omaha Mortgage loan officer.
- Get Preapproved: Once you’re ready, we’ll review your financials and get you prequalified for your next home.
Just a Minute Could Unlock Your Options
Answer a few quick questions and see if a DSCR loan is right for your investment goals. No commitment.
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