DSCR Loans for Rental Property Investors
30-year fixed-rate and hybrid ARM financing on 1–4-unit residential investment properties across 39 states. No income docs, no W-2s, no tax returns. Qualify on the property’s cash flow.
30-Year Fixed & ARM
Up to 80% LTV
39 States
No Income Docs
How DSCR Loans Work (and Why Investors Prefer Them)
DSCR stands for Debt Service Coverage Ratio. It measures whether a rental property generates enough income to cover its debt payment. The formula is simple: DSCR = Gross Monthly Rental Income ÷ PITIA (principal, interest, taxes, insurance, association dues).
Example: market rent of $2,400/month ÷ PITIA of $2,000/month = a DSCR of 1.20. The property earns 20% more than it costs to carry. It qualifies.
A DSCR of 1.0 means break-even. Above 1.0 means positive cash flow. Below 1.0 means the property doesn’t fully cover the debt on paper. Compare that to a conventional investment property mortgage that wants two years of tax returns, W-2s, pay stubs, and a full debt-to-income calculation.
DSCR Long-Term Rental Loan Terms
| LOAN PARAMETER | DETAILS |
|---|---|
| Loan Purpose | Purchase, rate-and-term refinance, cash-out refinance |
| Loan-to-Value (LTV) | Up to 80% (purchase/rate-term refi); up to 75% (cash-out) |
| Loan Terms | 30-year fixed, 5/1 ARM, 7/1 ARM |
| Interest-Only Option | Available |
| Property Types | 1–4 unit residential, condos, townhomes, PUDs (non-owner occupied) |
| Rental Strategy | Long-term, medium-term, or short-term (Airbnb/VRBO) |
| Minimum DSCR | 1.00x (680+ FICO); 1.15x (660–679 FICO) |
| Minimum Credit Score | 660 |
| Loan Amount Range | $75,000 – $2,000,000 ($115,000 minimum property value) |
| Income Documentation | None required – qualify on property cash flow |
| Entity Borrowing | LLC, LP, Corporation (individual guarantor required) |
| Portfolios | Welcome |
| Prepayment Penalty | Contact for current prepay structure |
| Closing Timeline | As fast as 21 days – varies by deal complexity |
Rates vary based on credit score, LTV, DSCR ratio, and loan term. Call (972) 755-1880 for a rate quote on your specific deal.
Who Qualifies for a DSCR Loan at Ternus
DSCR qualification is built around the property, not the borrower’s paycheck.
What we evaluate
Property cash flow. Credit score (660 minimum, with better terms at higher scores). Down payment or equity (20–25% on purchases, 75–80% LTV on refinances). Borrowing entity (LLC, LP, or corporation with personal guarantor).
What we do NOT require
No W-2s. No tax returns. No pay stubs. No employment verification. No personal debt-to-income calculation. The property’s cash flow is the underwriting story.
Five Investor Scenarios Where DSCR Loans Outperform Conventional Financing
The self-employed investor
You take every legal deduction. Your tax returns show $47,000 in income, but your actual cash flow is three times that. A DSCR lender underwrites the property, not your tax returns.
The portfolio scaler
You already own 10 financed properties and hit the conventional loan cap. DSCR loans have no property count limit.
The BRRRR strategist
Buy, rehab, rent, refinance, repeat. Refinance out of your short-term hard money loan into a 30-year DSCR loan with cash-out at up to 75% LTV.
The short-term rental operator
Conventional lenders won’t count your Airbnb income. DSCR lenders qualify you with projected or actual short-term rental revenue.
The time-strapped investor
Found a deal that needs to close in three weeks? DSCR eliminates the income-doc bottleneck.
Ready to Grow Your Rental Portfolio?
No tax returns. No W-2s. No income docs. Just a property that cash-flows and a lender that gets it. Ternus’s DSCR loan program gives you 30-year fixed-rate financing, up to 80% LTV, and qualification based entirely on your property’s rental income.