Mark W. Pattison, NMLS 2334799
Mortgage Advisor
AZ LO-2001289 | CA DFPI 2334799 | TX 2334799
NEXA Mortgage, LLC · NMLS 1660690 · Equal Housing Lender
Mark W. Pattison, NMLS 2334799
Mortgage Advisor
AZ LO-2001289 | CA DFPI 2334799 | TX 2334799
NEXA Mortgage, LLC · NMLS 1660690 · Equal Housing Lender
Investor Financing
A DSCR loan qualifies an investment property on its rental income instead of your personal income. If the rent covers the monthly payment, you may qualify without tax returns or pay stubs.
How the Ratio Works
DSCR stands for debt service coverage ratio. It compares a rental property’s monthly income with its monthly housing payment: principal, interest, taxes, insurance, and any HOA dues. Lenders use that ratio, rather than your W2s or tax returns, to decide whether the property can carry the loan.
For investment properties only. A DSCR loan cannot be used for a home you live in. For your own home, ask Mark about conventional, VA, Reverse, or bank statement options.
A ratio of 1.00 means the rent exactly covers the payment. Above 1.00, the property earns more than it costs each month. Many programs look for a ratio of about 1.00 or higher, and some accept a lower ratio with a larger down payment or other adjustments. Requirements vary by lender.
The rent figure usually comes from a current lease or, for a vacant or newly purchased property, the appraiser’s estimate of market rent.
Investors buying or refinancing a long term rental
Self employed investors whose returns show lower income after write offs
Investors growing a portfolio of several properties
Buyers who want to hold the property in an LLC
| Feature | DSCR loan | Conventional investment loan |
|---|---|---|
| How you qualify | The property’s rent | Your personal income |
| Income documents | Lease or market rent | Tax returns, W2s, pay stubs |
| Owning in an LLC | Often allowed | Generally personal name |
| Pricing | Usually higher rates | Usually lower rates |
Some programs allow it, often using rental history or a market rent estimate for short term stays. Ask Mark which programs fit your property.
Many DSCR programs allow it. The lender reviews the entity documents and usually asks for a personal guarantee.
It depends on the program, your credit, and the property’s ratio. Investment loans usually need a larger down payment than a home you live in. Mark can show you the options for a specific property.
Mark W. Pattison
NMLS 2334799
Have a property in mind?
Send the address and the rent. Mark can tell you how it is likely to read before you apply.
Share the property and the rent. You will hear back with the programs that fit and what each would take.