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DSCR Loan for Investors

A DSCR loan lets you finance a rental property based on the rent the property brings in, instead of your personal income or tax returns. DSCR stands for debt service coverage ratio: the property’s rent divided by its monthly payment (principal, interest, taxes, insurance and HOA). When the rent covers the payment, the property can qualify on its own numbers.

Heart Mortgage is a mortgage broker (NMLS #2045769). We compare DSCR programs from multiple lenders and guide you in English, Portuguese or Spanish, from the first call to closing.

Who it is for

  • Investors buying a property to rent out: long-term rental and, with some lenders, short-term or vacation rental where local rules allow it.
  • Self-employed buyers and business owners whose tax returns do not show all their income.
  • U.S. residents, ITIN holders and, with some lenders, foreign nationals who live outside the U.S.
  • Investors who want to buy in the name of an LLC. Many lenders allow it.

It may not be the right path if

  • You will live in the home. DSCR loans are for investment properties only.
  • Your income is easy to document with W-2s and tax returns. A conventional investment loan may fit better.

How it works

  1. Conversation with a loan officer. We look at the property, the expected rent, your down payment and reserves, and how you want to hold title (your name or an LLC).
  2. Rent and ratio. The rent comes from a signed lease or from the appraiser’s market rent estimate. The lender compares it to the monthly payment.
  3. Program match. Each lender has its own rules for the ratio, credit, property type, short-term rentals and LLCs. We compare the programs that accept your deal.
  4. Documents and appraisal. You send the documents below, and the appraiser values the home and estimates its market rent.
  5. Closing. You sign at closing, in person, remotely or by power of attorney, depending on the state, the title company and the lender.

Documents lenders usually ask for

  • Photo ID (passport for foreign nationals).
  • Bank statements showing the down payment and reserves.
  • The lease, if the property is already rented.
  • LLC documents if you buy through a company: articles of organization, operating agreement and EIN.
  • Credit report. Foreign nationals follow the lender’s documentation for buyers without U.S. credit.
  • Property insurance quote.

No tax returns or pay stubs are needed to prove personal income. The exact list depends on the lender and your profile. Your loan officer sends you a checklist for your case.

Why investors work with Heart Mortgage

  • A broker, not a single lender. We compare DSCR programs from multiple lenders, including rules for short-term rentals and LLCs, instead of offering only one set of rules.
  • Your language. All 11 of our licensed loan officers speak English and Portuguese; 7 also speak Spanish.
  • Founded by an immigrant. Lee Dama (NMLS #485039) founded Heart Mortgage in 2021 after arriving in the U.S. from Brazil at 19.
  • Licensed in 10 states: FL, TX, NJ, MA, CT, SC, NC, RI, NH and GA.

Buying from abroad? See our foreign national mortgage page. Filing taxes with an ITIN? See our ITIN mortgage page.

Frequently asked questions

What is a DSCR loan?

A mortgage for investment properties that qualifies you by the property’s rental income. The lender divides the rent by the monthly payment (principal, interest, taxes, insurance and HOA) to see whether the property pays for itself.

Do I need tax returns for a DSCR loan?

No. DSCR loans do not use your tax returns or pay stubs to prove personal income. Lenders still check your credit, down payment and reserves.

Can I use a DSCR loan for an Airbnb or vacation rental?

With some lenders, yes, where local rules allow short-term rentals. The lender decides how to count short-term rental income, so ask your loan officer before you choose the property.

Can a foreigner get a DSCR loan?

Some lenders offer DSCR loans to foreign nationals who live outside the U.S. Requirements for down payment, reserves and documents are usually stricter.

Can I buy with an LLC?

Many DSCR lenders allow it. You will need the LLC’s formation documents, operating agreement and EIN. Talk to an attorney or accountant about how to set up the company.

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Talk to a loan officer

Tell us about your situation and we will show you which paths exist, at no cost and with no commitment. In English, Portuguese or Spanish.

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Or call (833) 214-8444.

Heart Mortgage Corporation, NMLS #2045769. Mortgage broker, not a lender. Equal Housing Opportunity. Requirements and terms vary by borrower profile, program and lender, and are subject to change. This is not a commitment to lend. All loans are subject to credit approval and eligibility.