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Invest Smarter with DSCR Loans
Financing Tailored for Real Estate Investors
New Century Mortgages helps you qualify based on cash flow, not personal income. Fast approvals. Flexible terms. Expert guidance.
DSCR Loans
What is a
DSCR Loan?
If the rental income generated by your investment property covers the monthly mortgage payments, taxes, insurance, and HOA fees, you could qualify — even if you don’t meet traditional income documentation standards.
Unlike conventional loans that focus heavily on personal income, W-2s, or tax returns, a DSCR (Debt Service Coverage Ratio) Loan looks at the property’s ability to pay for itself. That means your approval is based primarily on the property’s cash flow performance, not your personal financial statements.
This makes DSCR loans a powerful solution for real estate investors, self-employed borrowers, or anyone building a rental property portfolio. Whether you own short-term vacation rentals, multi-family units, or single-family rentals, DSCR financing gives you the flexibility to grow without the roadblocks of traditional underwriting.
Quick Benefits
- No Personal Income Verification
- Qualify Based on Property Performance
- Build and Scale Your Investment Portfolio
- Fast, Streamlined Closings
- Flexible Loan Options
- Works for Short-Term and Long-Term Rentals
- Keep Personal and Business Finances Separate
Frequently Asked Questions
DSCR stands for Debt Service Coverage Ratio — a financial metric used by lenders to determine whether a property’s rental income is sufficient to cover its debt obligations (principal, interest, taxes, insurance, and HOA dues).
In simple terms, it answers the question: “Does this property pay for itself?”
The formula is straightforward:
DSCR = Net Operating Income ÷ Total Debt Service.
For example, if a property generates $5,000 in monthly rent and the mortgage payment (including taxes and insurance) is $4,000, then the DSCR is 1.25.
Most lenders look for a DSCR of 1.0 or higher, meaning the property earns enough to cover its expenses.
Anyone investing in rental or income-producing real estate can qualify — including self-employed borrowers, real estate investors, and those who prefer to keep personal income separate from investment loans.
Since qualification is based on property cash flow, you don’t need to provide tax returns, pay stubs, or W-2s.
New Century Mortgages can finance a variety of investment properties, including:
Single-family homes
2–4 unit residences
Condos and townhomes
Multi-family buildings
Short-term rentals (Airbnb, VRBO)
Loan amounts depend on property value, cash flow, and investor experience.
Typical loan sizes range from $150,000 up to several million dollars.
Your New Century loan advisor will help you determine the best structure for your investment goals.
Most DSCR loans require 20%–25% down, depending on credit profile, property type, and DSCR ratio.
Higher DSCRs may qualify for lower down payments or better rates.
Because the loan focuses on property performance rather than personal documentation, the process is streamlined and efficient.
Many New Century Mortgages clients close in as little as 2–3 weeks, start to finish.
Yes! DSCR loans are perfect for scaling your real estate portfolio.
You can hold multiple DSCR loans at once, allowing you to expand without hitting the limits of conventional lending.
DSCR loan rates are typically slightly higher than conventional mortgages because they carry more flexibility and less documentation.
However, most investors find the cash flow and tax advantages more than offset the difference.
Investment Loan Programs
Flexible financing solutions built specifically for real estate investors
DSCR Loans
Qualify based on property cash flow, not personal income. No minimum DSCR required. Rates from 6.25%.
Bridge Loans (Fix & Flip)
Fast, short-term financing for fix-and-flip projects. Close in 5 days. Up to 100% of rehab costs financed. 4-day draw processing.
New Construction
Ground-up construction financing for experienced builders. Build to rent or build to sell. Competitive terms for infill development.
Hard Money / Asset Based
Loan decisions based on property value, not credit. Construction draws in 4 days. Quick approvals for time-sensitive deals.
Portfolio Loans
Consolidate 5+ rental properties into one loan. Single payment, better cash flow. Lower rates and origination fees.
