Qualify the property, not the paycheck.

Debt-Service Coverage Ratio lending is the flagship of Non-QM: investment-property loans underwritten to the property's rent instead of the borrower's income.

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MEMBERS GET ANSWERS FROM REAL INVESTOR GUIDELINES — WITH CITATIONS

The orbit briefing

A DSCR loan sizes the deal on one number: gross rent divided by the full housing payment (PITIA, plus HOA where it applies). At 1.00 the property pays for itself; above it there's cushion; below it, pricing and leverage tighten — but plenty of investors still lend down to 0.75 or even with no ratio at all.

Because there's no personal income calculation, there's no tax-return archaeology, no DTI, and usually no employment section to defend. The borrower's credit, liquidity, and landlord experience still matter — but the property carries the file.

Built for

Real-estate investors scaling past the 10-property agency limit
Self-employed borrowers whose returns understate cash flow
LLC and entity vesting — most DSCR investors allow it
Short-term-rental operators (many programs count STR income)
Foreign nationals building a US rental portfolio

How the ratio works

1
DSCR = gross monthly rent ÷ PITIA (principal, interest, taxes, insurance, association dues).
2
Rent comes from the lease or the appraiser's 1007 market-rent schedule — investors differ on which wins when they disagree.
3
Interest-only payments can be used in the ratio at many shops, which is the classic lever to clear a 1.00 floor.
4
Short-term rental income is program-specific: some take a 12-month host statement history, some haircut AirDNA projections, some won't touch STR.

Typical guardrails

Educational ranges across the market — every investor grids this differently.

DSCR FLOOR	0.75 – 1.25	Sub-1.0 usually costs LTV and rate; 'no-ratio' exists at lower leverage
MAX LTV	75 – 80%	Best tiers reserved for 1.0+ ratios and 700+ FICO
MIN FICO	620 – 680	Tier breakpoints commonly at 640 / 660 / 700 / 720
LOAN AMOUNTS	$100K – $3M+	Some investors tier LTV down as the loan grows
PREPAY PENALTY	0 – 5 years	Buying out the prepay costs rate; some states restrict them

EXACT NUMBERS LIVE ON THE SCENARIO DESK — CITED TO THE GUIDELINE PAGE

The LO talk track

“We qualify the property on its rent — your tax returns stay in the drawer.”
“Vesting in your LLC is fine. Most of my DSCR investors prefer it.”
“If the ratio is thin, interest-only often clears the floor — let me run it both ways.”

Where files go sideways

Quoting a 30-year P&I ratio when the file only works interest-only — verify the investor allows IO in the ratio.
Condotels and short-term rentals: eligible property type and eligible income are separate questions.
Forgetting HOA dues in PITIA — the #1 reason a 1.05 becomes a 0.97 at underwrite.
Prepay-penalty state restrictions (and borrower surprises at payoff).

Straight answers

Does the borrower need any income documentation?

No personal income docs — but expect credit, assets for down payment and reserves, and often a landlord history or housing history requirement.

Can a first-time investor get a DSCR loan?

Many investors allow first-timers with compensating factors (lower LTV, stronger ratio, primary housing history). Some require 12 months' landlord experience.