MD
Mark DankmanResource Home Loan
Loan Program

DSCR Investor Loans

Debt Service Coverage Ratio (DSCR) loans qualify investment properties based on the rental income the property produces, not your personal tax returns. Built for investors scaling a portfolio.

Minimum DSCR

1.00-1.25

Down payment

20-25%

Credit minimum

660

No tax returns required

Correct

Best For
  • Real estate investors
  • Self-employed with complex returns
  • Portfolio scaling beyond conventional limits
How It Works
  • Rent (market or lease) divided by PITIA must exceed DSCR minimum
  • No personal income documentation
  • Vesting in LLC allowed
  • Short-term rental income (Airbnb) accepted by many lenders
Pros
  • No personal income docs
  • LLC vesting
  • Unlimited number of financed properties
Trade-offs
  • Higher rates than conventional investor loans
  • 20-25% down required
Frequently Asked

What DSCR do I need?

1.00 is break-even; most lenders want 1.10-1.25 for best pricing. Below 1.00 there are lenders that will still lend at a rate premium.

Can I use projected Airbnb income?

Yes with certain lenders, typically using an AirDNA or third-party rental analysis.

Is there a prepayment penalty?

Usually yes, most commonly a 3-year step-down. Buying out the penalty is possible but raises the rate.

Real-World Examples

How this program actually plays out.

Sacramento single-family rental

An investor already at the conventional financed-property limit, buying their eighth rental in an LLC.

Purchase price
$430,000
Down payment
25%
Market rent
$2,750/mo
DSCR
1.18

Closed in the LLC with no tax returns reviewed, and the file did not count against conventional property limits.

Napa short-term rental

A buyer purchasing a wine-country property to run as a short-term rental, with no long-term lease in place.

Loan amount
$780,000
Income source
Third-party STR projection
Down payment
25%
DSCR
1.06

A lender that accepts AirDNA-style projections made this work, where a standard market-rent analysis would have failed the ratio.

Examples are illustrative composites of typical files, not offers of credit or guarantees of terms. Your actual options depend on your credit, income, property, and current market pricing.

What Moves Your Rate
  • The DSCR itself, with pricing breaks at 1.00, 1.10, and 1.25
  • Loan-to-value, with the best pricing at 65-70%
  • Credit score
  • Prepayment penalty term chosen, where a longer penalty buys a lower rate
  • Short-term versus long-term rental income
Documents You Will Need
  • Lease agreements or a rent schedule from the appraisal
  • Two months of bank statements for down payment and reserves
  • LLC operating agreement and articles if vesting in an entity
  • Credit report, plus a track record of owned rentals where available
Northern California Notes

How dscr investor loans work in our market.

  • Sacramento, Vallejo, and Santa Rosa produce the strongest DSCR ratios in our region because rents carry the payment more easily.
  • San Francisco and Marin rentals often fall below 1.00 DSCR, which requires either more down or a lender that lends sub-1.00.
  • Napa and Sonoma short-term rentals depend on local permitting, which underwriters increasingly ask about.
San FranciscoMarin CountyEast BaySonoma CountyNapa CountySacramento
Is this the right program?

Have Mark run your numbers, no credit pull required.

Talk to Mark
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