Rental Loans (DSCR)

Finance investment properties based on property cash flow — not personal income. No W-2s, no tax returns, and no traditional employment verification required.

What is a DSCR loan?

DSCR (Debt Service Coverage Ratio) loans are structured for real estate investors seeking to qualify based on property cash flow rather than personal income.

Employment type is not the qualifying factor. What matters is whether the property’s income supports the debt.

Who This Loan Is Designed For:

Real estate investors who want to qualify based on property cash flow — not personal income. Ideal for self-employed borrowers, investors with multiple properties, foreign nationals, and ITIN holders who cannot document income through traditional W-2s or tax returns.

When It’s Used:

When acquiring or refinancing a rental property, scaling a portfolio, or financing a short-term rental (Airbnb/STR) where the property’s income supports the debt obligation.

Why It Matters:

DSCR removes the personal income barrier from investment property financing. It allows investors to scale without being limited by their employment status or income documentation — and supports both individual and entity borrowing structures.

Eligible Property Types:

Houses
Townhouses
Condominiums
Multifamily (residential, 1 to 4 units)
Commercial Multifamily (5 or more units)
Newly Constructed Properties
Airbnb / STR
Light Commercial Properties (subject to lender guidelines)

⭐ Advantages

No Personal Income Required: Qualification is based on property cash flow — no W-2s, tax returns, or traditional DTI calculations.
LLC Ownership Allowed: Close in your entity from day one for liability protection and long-term portfolio structuring.
Built for Scalable Investors: Designed for multi-property investors building rental portfolios.
Short-Term Rental Eligible: Airbnb and STR properties may qualify with proper market support.
Faster, Streamlined Underwriting: Simplified documentation and efficient approval process.
Execution-Focused Structuring: We align credit profile, cash flow, and lender appetite before submission.
Designed for Growth, Not Just Approval: Structured to support long-term acquisition strategy — not one-off transactions.

⭐ Requirements

For U.S. Residents / Domestic Borrowers:

20–25% Minimum Down Payment: Based on credit profile, property type, and DSCR strength.
Minimum FICO 620: Higher scores improve pricing and leverage.
Market Rent Support Required: Appraisal Form 1007 or market rent analysis (AirDNA for STR, when applicable).
Liquidity Reserves: Typically 2–6 months of PITIA.
Property Must Be Income-Producing.

For Foreign Nationals (FN):

25–30% Down Payment (typical): May vary by lender and property type.
No U.S. FICO Required: Qualification is based on property cash flow and global profile.
Passport + Visa / Legal. Status Documentation
Market Rent Support Required.
Liquidity Reserves Required.

Frequently Asked Questions:

How is DSCR calculated?

DSCR (Debt Service Coverage Ratio) is calculated by dividing the property’s gross rental income by its total monthly debt obligation (principal, interest, taxes, insurance, and HOA if applicable).

Formula:
Gross Monthly Rent ÷ PITIA = DSCR Ratio

Example:
$3,000 rent ÷ $2,500 debt = 1.20 DSCR

Most lenders look for 1.00–1.25+, depending on profile, property type, and leverage.

What DSCR ratio is required?

Most programs require a minimum 1.00 DSCR, meaning the property covers its own debt.

However:

1.10–1.25+ improves pricing

Lower DSCR may be accepted with higher down payment

Strong liquidity can offset borderline ratios

Each capital partner has slightly different guidelines — we structure the file accordingly before submission.

How does DSCR underwriting differ from conventional loans?

Conventional loans qualify the borrower.
DSCR loans qualify the property.

There are:

No W-2 income requirements

No tax return income calculation

No traditional DTI formula

Approval is based primarily on:

Property rent performance

Down payment

Liquidity

Credit profile (if applicable)

For Foreign Nationals, qualification is based on asset strength and property performance — not U.S. credit history.

Can foreign nationals qualify for DSCR financing?

Yes.

Foreign National DSCR programs allow investors without U.S. income or U.S. FICO scores to qualify based on:

Down payment (typically 25–30%)

Property cash flow

Liquidity reserves

Legal identification (passport/visa)

We structure FN loans based on lender appetite, country of origin, and property type before submission.

Can I use DSCR for Airbnb or short-term rentals?

Yes — when properly structured.

Short-term rental DSCR programs require:

Market rent validation (AirDNA or STR rent study)

Property located in STR-permitted areas

Strong projected occupancy support

Not all lenders allow STR. We align the file with the correct capital partner first.

How many DSCR loans can I have?

There is no strict property limit in most DSCR programs.

Investors can scale portfolios based on:

Liquidity strength

DSCR performance

Equity position

Lender exposure limits

DSCR is designed for scalable portfolio growth — not one-off transactions.

What is the typical closing timeline?

Most DSCR loans close within 21–30 days, depending on appraisal speed and documentation readiness.

Pre-structured files often move faster because underwriting friction is reduced before submission.

Why structure your DSCR loan with Glovenco?

Most brokers submit files.
We design execution paths.

Glovenco structures DSCR loans based on:

Investor profile and long-term portfolio strategy

Entity positioning (LLC, Foreign National structuring)

Property cash-flow alignment

Capital partner appetite before submission

We do not “shop the file.”
We align it first.

From profile analysis to direct capital submission, our focus is execution certainty — not trial-and-error underwriting.

For investors building portfolios across Florida and the Northeast, structure matters more than rate alone.

Ready to Close Fast?

Cash-Flow Based Lending for Investment Properties