DSCR Loans for Real Estate Investors
Qualify based on property cash flow instead of personal income documentation. A flexible option for investors purchasing, refinancing, or growing long-term rental portfolios.
*Closing timeline may vary depending on title, appraisal, and overall transaction conditions.
Get a DSCR Mortgage Quote
Connect with one WestPac Lending loan officer to discuss financing options for your investment property.
DSCR Rental Loan
SFR, Condo, Townhome, 2–4 Units
Short-Term Rentals Case-by-Case
LLC Ownership Available
Traditional Mortgages Weren’t Built for
Real Estate Investors
Most real estate investors run into the same problem when trying to qualify for a mortgage – traditional lenders rely heavily on tax returns, W-2 income, and strict debt-to-income ratios.
But if you’re self-employed, write off expenses, or already own multiple properties, your income on paper may not reflect your true financial position.
That’s where DSCR loans are different.
Instead of focusing on your personal income, DSCR loans evaluate whether the property itself generates enough rental income to cover the mortgage payment.
Qualify based on the property’s cash flow – not your personal income.
Want to see if your deal qualifies?
No impact to your credit. No obligation. Investor-focused lending specialists.
DSCR Formula
PITIA = Principal, Interest, Taxes, Insurance, and Association Fees (HOA), if applicable
Example
Monthly Rent: $3,200
Mortgage Payment (PITIA): $2,600
$3,200 ÷ $2,600 = 1.23
DSCR = 1.23
A DSCR above 1.0 typically means the property generates enough income to cover the loan.
Want help calculating your DSCR? Submit your property for a quick, no-pressure analysis.
Who DSCR Loans Are Designed For
DSCR loans are built specifically for real estate investors who need flexible financing without traditional income restrictions.
- Real estate investors scaling rental portfolios
- Self-employed borrowers with write-offs
- Investors with multiple financed properties
- Borrowers with complex or inconsistent income
- Investors purchasing or refinancing through an LLC
If your income doesn’t look strong on paper, but your properties generate cash flow — this loan was built for you.
Why Investors Use DSCR Loans
- No personal income verification
- No tax returns required
- Qualify based on rental income
- Scale your portfolio faster
- Flexible underwriting guidelines
- Finance properties in an LLC
Most DSCR loans close without traditional income documentation.
Submit your property to see if it qualifies
Start Your ApplicationExample DSCR Loan Scenario
Here’s how an investment property can qualify using rental income - not personal income.
Purchase Price: $425,000
Market Rent: $3,100/month
Loan-to-Value: 75%
Loan Amount: $318,750
Estimated Mortgage (PITIA): $2,450/month
DSCR = 1.27
This property generates sufficient rental income to qualify for DSCR financing.
We’ll structure your deal like this - based on your property.
We’ll structure a custom DSCR scenario based on your property - no obligation.
DSCR Loan FAQs
Answers to common questions real estate investors ask about DSCR loans.
What is a DSCR loan?
A DSCR loan is an investment property mortgage that qualifies borrowers based on rental income instead of personal income documentation.
What DSCR ratio is required?
Many DSCR loans look for a ratio of 1.0 or higher, meaning the property generates enough income to cover its debt obligations.
Do DSCR loans require tax returns?
In many cases, no. DSCR loans are designed to qualify based primarily on the property’s rental income rather than personal tax returns.
Can I close a DSCR loan in an LLC?
Yes. Many DSCR loan programs allow financing in an LLC, which can be helpful for real estate investors.
What property types are eligible?
Eligible properties often include non-owner-occupied single-family rentals, condos, townhomes, 2–4 unit properties, and some short-term rentals.
Can I use a DSCR loan for a primary residence?
No. DSCR loans are generally intended for investment properties, not owner-occupied homes.
Ready to Finance Your Next Investment Property?
Submit your property details and connect with WestPac Lending to explore your DSCR loan options.
No obligation. No tax returns required in many cases. Investor-focused guidance from WestPac Lending.
Learn what a Qualified Mortgage is here on the CFPB website.
