Beyond Financing, Inc.
(857) 410-1391

DSCR Loans: Investment Property Financing Based on Rental Income

A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that qualifies mainly on the property's rental income instead of your personal income. It is a popular option for real estate investors who already own several properties, are self-employed, or want to buy through an LLC.

How DSCR works

The lender compares the property's expected monthly rent to its monthly housing payment (principal, interest, taxes, insurance and any HOA dues). If the rent covers the payment by the ratio the lender requires, the property may qualify, often without personal tax returns or pay stubs.

Who DSCR loans are for

  • Investors buying or refinancing long-term rental properties
  • Investors buying short-term rentals, with some lenders accepting projected short-term rental income
  • Owners of 2–4 family properties common in Greater Boston and the North Shore
  • Borrowers who want to close in the name of an LLC

Important to know

  • DSCR loans are for investment properties only and are business-purpose loans; they cannot be used for a home you live in.
  • Down payment, credit and reserve requirements vary by lender and by the property's cash flow.
  • Rates are typically higher than owner-occupied conventional loans.

Beyond Financing compares DSCR programs from multiple wholesale lenders for properties in the states where we are licensed, including Massachusetts and Florida.

Related: Foreign national loans · Empréstimo DSCR em português

Frequently asked questions

What is a DSCR loan?

A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that qualifies based on the property's rental income compared with its monthly payment, instead of the borrower's personal income.

Can I get a DSCR loan in an LLC in Massachusetts?

Many DSCR lenders allow closing in the name of an LLC. Beyond Financing, Inc. (NMLS #2394496) helps investors compare DSCR programs in Massachusetts and other licensed states.

Can I use a DSCR loan for my primary home?

No. DSCR loans are business-purpose loans for investment properties only.

Talk to a Beyond Financing loan officer: (857) 410-1391 · Apply now · Send us a message · Atendimento em português

Beyond Financing, Inc. | NMLS #2394496 | 999 Broadway, Suite 500-N, Saugus, MA 01906 | (857) 410-1391. Mortgage Broker only in CA, CT and MA; Mortgage Broker and Correspondent Lender in FL, NH, NC, RI, SC and TX. See our Licensing page and NMLS Consumer Access. Equal Housing Opportunity. This is not a commitment to lend. All loans are subject to credit approval, property approval, underwriting guidelines and program availability, and terms may change without notice. Not all applicants will qualify. Program availability varies by state.