Loan programs · DSCR
Let the rent do the qualifying.
A DSCR loan qualifies your investment property on the income it produces — not your personal pay stubs — with no cap on how many you can own. Here's how Orange County investors use it to keep buying.
What is a DSCR loan?
A DSCR loan is investment-property financing that qualifies on the property's rental income instead of your personal income. The lender compares the rent against the full loan payment — a ratio of 1.25 means the rent covers the payment with 25% to spare. There's no W-2 requirement and no portfolio cap, so investors can keep scaling. Choice Home Mortgage shops many DSCR lenders to fit your deal.
DSCR loans, explained in 30 seconds.
Investing in rentals? Here's the whole idea — quick, clear, and friendly.
The property carries the loan.
A DSCR loan — Debt Service Coverage Ratio — lets a real-estate investor qualify on the property’s own rental income rather than personal pay. The lender simply compares the rent the property brings in against its full payment. Your tax returns, which often understate a busy investor’s real picture, stay out of the decision.
The math is clean: divide gross monthly rent by the full payment — principal, interest, taxes, insurance, and HOA. A DSCR of 1.25 means the rent covers the payment with 25% left over. A 1.0 breaks even. Different lenders set different minimums, and some allow ratios under 1.0 with adjustments — which is exactly why shopping many lenders matters.
Buying a primary home and self-employed instead? You’ll want a bank statement loan or a broader Non-QM program. For pure no-income investor financing, see our non-owner & no-income loans.
Why investors reach for a DSCR loan.
The property qualifies, not you
A DSCR loan looks at the rent the property brings in versus its payment — your personal income and tax returns stay out of it.
The DSCR ratio
Divide the property's rent by its full payment (principal, interest, taxes, insurance, HOA). A 1.25 means the rent covers the payment with 25% to spare.
No portfolio cap
Conventional financing often caps you around 6–10 properties. DSCR programs don't — they're built to let serious investors keep buying.
Investment property only
DSCR loans are for income-producing properties — long-term rentals and, with the right lender, short-term rentals — not a primary home.
Light on paperwork
No W-2s, no tax returns, no employment write-ups. The rent roll or market-rent analysis does the heavy lifting.
An owner who invests too
Greg and Esther run a real-estate business themselves — they speak investor. We shop many DSCR lenders to fit your deal.
DSCR loan questions, answered.
What is a DSCR loan?
DSCR stands for Debt Service Coverage Ratio. On a DSCR loan, an investment property qualifies on its own rental income rather than your personal income. The lender compares the rent the property brings in against the full loan payment — so your tax returns and pay stubs aren't the deciding factor.
How is the DSCR ratio calculated?
Divide the property's gross monthly rent by its full monthly payment — principal, interest, taxes, insurance, and HOA (PITIA). A ratio of 1.0 means the rent exactly covers the payment; 1.25 means it covers the payment with 25% to spare. Lender minimums vary, and some programs allow ratios below 1.0 with adjustments.
Can I use a DSCR loan for my own home?
No. DSCR loans are designed exclusively for income-producing investment properties, not primary residences. If you're buying a home to live in and you're self-employed, a bank-statement or P&L loan is the path — and we shop those too.
Is there a limit on how many DSCR loans I can have?
Generally no. One of the biggest advantages of DSCR financing is that it isn't bound by the roughly 6–10 financed-property cap that conventional Fannie/Freddie loans impose. That's why it's a favorite tool for investors building a portfolio.
I write off most of my income — can I still qualify?
Often, yes. That's exactly the borrower DSCR loans serve. If your tax returns show little income because of write-offs, but the property's rent supports the payment, the deal can still work — because the property qualifies, not your return.
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Run your next deal by us.
Bring the address and the rent — we'll estimate the DSCR and tell you honestly whether it pencils, then shop it to the lender whose terms fit your strategy.