DSCR Rental Loans
Qualify on rental income, not your W-2.
What is DSCR Rental Loans?
A DSCR (Debt Service Coverage Ratio) loan qualifies you based on whether the property's rental income covers its mortgage payment — not your personal tax returns or W-2. This makes it ideal for self-employed investors, business owners, or anyone whose tax returns understate their true income. If the property cash-flows, it qualifies. Simple as that.
Key benefits
- No personal income verification — qualify on the property's rent
- Self-employed borrowers and business owners welcome
- 30-year fixed and ARM options for long-term stability
- LLC and entity vesting accepted
- Cash-out refinance available to pull equity from existing rentals
Requirements
Min DSCR
1.0x
Min FICO
660+
LTV
Up to 80%
Property
1–8 unit rental
How it works
Submit property and rent schedule
Share the property details, current or projected rent, and your purchase price or existing value. That's all we need to start.
DSCR calculation and terms
We calculate the DSCR, order a BPO or appraisal, and deliver a term sheet within 48 hours.
Close and start collecting rent
Sign the docs and close. Your mortgage is set — your rent pays it down every month.
When to use DSCR Rental Loans
The right fit for your situation
Investment property purchases
Buy single-family rentals, duplexes, or small multifamily properties and qualify on the rental income alone.
Portfolio expansion
Self-employed investors often can't qualify conventionally for a fifth or tenth property. DSCR removes that barrier.
Cash-out refinance on existing rentals
Pull equity from appreciated rental properties to fund additional acquisitions — without triggering income documentation requirements.
STR and Airbnb properties
Many DSCR programs accept short-term rental income projections. Luma works with STR-friendly appraisers.
FAQ
Common questions about DSCR Rental Loans
Ready to get DSCR Rental Loans?
Apply in 60 seconds. No hard credit pull.