DSCR Loans

Qualify based on rental income—not personal income

With a DSCR loan, you don’t need to show personal pay stubs, tax returns, or employment history. Instead, you qualify based on your rental property’s income potential. Whether you’re building a portfolio of long-term rentals or expanding with short-term vacation units, CTC Mortgage helps investors secure financing using the Debt Service Coverage Ratio as the key metric. If the rent covers the mortgage, you’re already on the right track.

Finance rentals with a DSCR mortgage

A DSCR loan (Debt Service Coverage Ratio loan) is designed for real estate investors who want to qualify for a mortgage based on the property’s ability to cover its own expenses. Instead of verifying your income and calculating your personal debt-to-income ratio, we look at how the expected or actual rent stacks up against the mortgage payment. A ratio of 1.0 or higher means the rental income fully covers the loan—making it a strong, sustainable investment in the eyes of DSCR lenders.

Why investors choose DSCR loans

DSCR mortgages are ideal for those who:



• Write off much of their income on taxes
  
• Own multiple financed properties
  
• Want to buy in an LLC name
  
• Prefer to avoid personal income documentation
  
• Are expanding quickly and need scalable lending options
  
  

These loans are a favorite tool for portfolio growth because they rely on asset performance, not borrower paperwork. Many programs allow financing of multiple properties and don’t count toward the Fannie/Freddie cap on residential investment mortgages.

Basic requirements for DSCR mortgage approval

To qualify for a rental property DSCR loan, most lenders look for:

• Minimum DSCR: Typically 1.0 or higher (some accept <1.0 with strong credit or higher down payment)
  
• Down payment: Usually 20–25%, sometimes as low as 15%
  
• Credit score: Often 680+, though some allow as low as 640
  
• Property types: Single-family rentals, 2–4 units, condos, or townhomes
  
• Loan terms: Fixed-rate and ARM options available, with interest-only terms common
  
• Rental income: Can be based on existing lease or market rent from an appraiser
  
  

Short-term rentals (Airbnb/VRBO) may be eligible under select programs. Interest rates are typically higher than conventional, but the streamlined process and investment flexibility make DSCR loans a go-to for serious investors.

Real-world example: DSCR in action

Let’s say a rental property generates $2,200 in monthly rent. The total monthly housing cost (including principal, interest, taxes, and insurance) is $1,800.



DSCR = $2,200 ÷ $1,800 = 1.22

That’s a strong ratio—and in most cases, would easily qualify under DSCR loan guidelines. The higher your DSCR, the better your loan terms are likely to be.

Expand your portfolio without income limits

One of the biggest advantages of DSCR loans is that they don’t cap your financing based on personal income or number of properties. If the rental property meets the debt coverage requirements, you can keep scaling. Some investors even use a DSCR mortgage to cash-out refinance an existing property and use the equity to buy another.



CTC Mortgage works with active investors every day, helping them make data-driven decisions about growing their holdings.

Start your next deal with CTC Mortgage

We work with new and seasoned investors across Florida, North Carolina, Georgia, and beyond to secure DSCR loans with flexible terms and quick closings. Our team understands rental property underwriting and will guide you through the process of leveraging cash flow—not personal income—to finance your next investment.



Let’s talk strategy, review your property’s potential rent, and map out the best options for your next deal.

Faqs– DSCR Loans

Answers to common mortgage questions