Commercial Loans – DSCR JUMBO

No Income Rental/DSCR Loan

Purchase & Refinance for Investment Properties with Rental Income Only

What is a DSCR (Rental property) Loan?

A DSCR loan is a special type of mortgage for buying rental properties. Instead of looking at your personal income or job history, lenders use the property’s rental income to decide if you qualify.

DSCR stands for Debt Service Coverage Ratio. It shows whether the property makes enough money to pay the mortgage. To figure it out, lenders divide the property’s income (after expenses) by the loan payment.

If the property earns more than it costs to own, you’re more likely to get approved.

DSCR – Easy Cash Out Refinance

If you’re looking to cash out refinance your rental property without providing W-2s, pay stubs, or tax returns, DSCR (Debt Service Coverage Ratio) loans are a powerful and flexible option tailored for real estate investors like you.

“Let us help you unlock the equity in your rental property—quickly and hassle-free.”

✅ DSCR Loan Checklist for First-Time Buyers
1. Property Type
Is the property a rental (short-term like Airbnb or long-term lease)?
Is it expected to generate steady rental income?
2. Income Requirements
You prefer not to use personal income or employment history to qualify.
You have limited or variable income (e.g., self-employed, freelancer).
3. Property Income
The property’s rental income is enough to cover the mortgage payment.
You can provide a rental analysis or lease agreement.
4. Credit & Down Payment
You have decent credit (usually 620+ is preferred).
You can make a down payment (typically 20–25%).
5. Investment Goals
You want to start or grow a rental property portfolio.
You’re looking for a loan that focuses on property performance, not personal finances.
6. Loan Process
You want a simpler, faster approval process.
You’re okay with slightly higher interest rates in exchange for flexibility.

DSCR Calculation

DSCR=Gross Monthly Rent / Monthly Mortgage Payment (PITIA)

Where PITIA is Principal, Interest, Taxes, Insurance, and Association dues(if applicable)

=Monthly Mortgage Payment (PITIA)Gross Monthly Rent

Example Rent Divided PITIA (RDP)
$1100 rent / $1000 PITIA = 1.10% DSCR Positive Cash Flow
$1000 Rent / $1000 PITIA = 1.00% DSCR 1 to 1 Break Even
$900 Rent / $1000 PITIA = .90% DSCR Negative Cash Flow

Rental Income: Rental income can be determined from:

-For short-term rentals, 12-month rental history

-Lease agreement

-Market rent (Form 1007) Provided by the appraiser

LLC Closing Requirements for DSCR

Required Documents for LLC Closing:
Articles of Incorporation or Articles of Organization
Operating Agreement
Tax Identification Number (EIN)
Certificate of Good Standing
Fully executed Certification Regarding Beneficial Owners
Valid ID for non-borrowing LLC owners
LLC’s Certificate of Borrower and Authorization
LLC Ownership Restrictions:
Maximum of 4 individual owners
Borrowers must own a total of 51% of the business entity
Primary borrower must be:
- A manager or
- Majority owner (25% or greater)
Ownership percentage cannot have changed within 90 days of application

Example Scenario:

Property Monthly Rental Income: $2,000
Monthly PITIA: $2,000

Calculation: $2,000 (Rental Income) ÷ $2,000 (PITIA) = 1.0 DSCR

This means the property’s rental income exactly covers its mortgage-related expenses.

A DSCR of 1.0 means the rental income exactly covers the monthly mortgage payment. This is typically the minimum threshold most lenders require to approve a DSCR loan.