DSCR LOANS FOR RENTAL PROPERTIES
- U.S. & FOREIGN INVESTORS
- NO INCOME VERIFICATION
- FAST CLOSINGS NADLAN
No Income Verification
High LTV Is Options
Fast Closings
DSCR Loans
DSCR Loans for Rental Properties
DSCR loans are designed for real estate investors purchasing or refinancing income-producing rental properties. Qualification is based primarily on the property’s cash flow, not personal income.
Key Loan Terms (Typical US Lender Standards)
Feature | DSCR Loans |
|---|---|
Loan Type
| Non-QM Investment Loan |
DSCR Requirement
| ≥ 0.75
|
Max LTV
| Up to 80%
|
Loan Size
| $75,000 – $5,000,000+
|
Rate Type
| Fixed & ARM
|
Amortization
| 30 or 40 years
|
Interest-Only
| Available
|
Prepayment Penalty
| 0–5 years (optional)
|
Closing Time
| 21–30 days
|
DSCR Loans
Borrower Eligibility
US Citizens
• No income verification
• Credit score: 620+
• Unlimited properties allowed
Permanent Residents (Green Card)
• Same terms as US citizens
• ITIN accepted by some lenders
Non-Permanent Residents
• Valid visa required
• Higher reserves may apply
Foreign Investors
• No US income required
• Foreign credit accepted
• 25–30% down payment typical
• US bank account recommended
Property Types
- Single-family rentals
- 2–4 unit properties
- Condos & townhomes
- Short-term rentals (Airbnb)
- Mixed-use (case-by-case)
Commercial Eligibility
- Small balance commercial
- Mixed-use properties
- Portfolio DSCR loans
DSCR Loans
Frequently Asked Questions (FAQs)
A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage where qualification is based on the property’s rental income, not the borrower’s personal income. Lenders evaluate whether the rental cash flow can cover the monthly mortgage payment.
DSCR is calculated by dividing monthly rental income by the monthly mortgage payment (principal, interest, taxes, insurance, and HOA if applicable).
Example:
$2,000 rent ÷ $1,800 mortgage = 1.11 DSCR
Most lenders require DSCR ≥ 1.00, though some allow below 1.0 with higher down payments.
No. DSCR loans do not require W-2s, tax returns, or pay stubs. Approval is based primarily on the property’s cash flow and borrower credit profile.
DSCR loans are available to:
• US Citizens
• Permanent Residents (Green Card holders)
• Non-Permanent Residents (Visa holders)
• Foreign Investors (Non-US residents)
Programs and requirements vary slightly depending on residency status.
Yes. Foreign investors can qualify for DSCR loans without US income or SSN. Many lenders accept foreign credit reports, and a US bank account is recommended. Down payments typically range from 25%–30%.
Eligible property types include
• Single-family rentals
• 2–4 unit properties
• Condos and townhomes
• Short-term rentals (Airbnb / VRBO)
• Mixed-use properties (case-by-case)
• Small balance commercial properties
Yes. Many lenders allow short-term rental DSCR loans using:
• Market rent from appraisal or
• Actual Airbnb income supported by platforms like AirDNA
Requirements may vary by location and occupancy history.
Typical maximum loan-to-value (LTV):
• Up to 80% for US citizens and permanent residents
• 70%–75% for foreign nationals and non-permanent residents
Higher LTV may be available with strong DSCR and reserves.
Yes. Many DSCR lenders offer interest-only options, typically for 5–10 years, followed by a fully amortizing term. This can improve cash flow for investors.
Most DSCR loans include optional prepayment penalties, typically:
• 0 years (no penalty)
• 3 years
• 5 years
Penalty terms can often be customized based on investor strategy.
Yes. DSCR loans can be used for:
• Rate-and-term refinance
• Cash-out refinance (subject to LTV limits)
Seasoning requirements usually range from 3–6 months.
No. Most DSCR lenders do not limit the number of financed properties, making this an ideal solution for portfolio investors.
Typical minimum credit score:
• 620+ for US borrowers
• 640–680+ for foreign nationals (varies by lender)
Higher credit scores unlock better rates and terms.
DSCR loans typically close in 21–30 days, making them significantly faster than conventional investment loans.
Yes. DSCR loans allow LLC ownership, including single-member or multi-member LLCs, with personal guarantees required in most cases.
DSCR loans are Non-QM investment loans, not traditional commercial loans, but they can be used for small-balance commercial and mixed-use properties.
Nadlan Financing provides:
• Access to 50+ DSCR lenders
• Programs for US & foreign investors
• Competitive rates & flexible terms
• Short-term rental & mixed-use expertise
• Fast closings with dedicated investor support