What is a DSCR Loan? A Guide for Real Estate Investors
If you're a real estate investor looking for flexible financing options that focus on the property's cash flow rather than your personal income, a DSCR loan might be the solution you've been looking for.
What Does DSCR Stand For?
DSCR stands for Debt Service Coverage Ratio. It's a financial metric used by lenders to assess a property's ability to generate enough income to cover its debt obligations.
In simple terms, DSCR = Net Operating Income (NOI) / Debt Payments.
For example, if a rental property brings in $5,000 in net income each month and the mortgage payment is $4,000, the DSCR would be:
DSCR = $5,000 / $4,000 = 1.25
A DSCR of 1.25 means the property generates 25% more income than needed to pay the mortgage—usually a strong indicator for lenders.
Why DSCR Loans Are Popular with Real Estate Investors
Unlike traditional loans that rely heavily on your W-2 income, tax returns, or personal financials, DSCR loans are based primarily on the cash flow of the investment property. This makes them especially attractive to:
Real estate investors
Self-employed borrowers
Foreign nationals
Borrowers with complex financial profiles
Benefits of a DSCR Loan
✅ No income verification – Focus is on property cash flow, not your job or tax history
✅ Fast approvals – Less documentation speeds up underwriting
✅ Scalable financing – Ideal for growing rental portfolios
✅ Flexible terms – Competitive rates, interest-only options, and longer terms available
What’s a Good DSCR?
Lenders typically look for a minimum DSCR of 1.0, which means the property can cover its debt payments. However, many lenders prefer a ratio of 1.15 or higher for added risk protection. Some lenders will go lower if the borrower has strong credit or additional assets.
Property Types That Qualify for DSCR Loans
DSCR loans are commonly used for:
Single-family rentals (SFRs)
2-4 unit properties
Short-term rentals (Airbnb/VRBO)
Small multifamily (up to 10+ units)
Mixed-use properties (case-by-case)
How QuickLend Capital Can Help
At QuickLend Capital, we specialize in private direct lending for real estate investors across the country. Whether you’re purchasing your first rental or refinancing an entire portfolio, our DSCR loan programs are built to move at the speed of your business.
Here’s what sets us apart:
✅ Fast closings – Close in as little as 7–10 days
✅ No income docs required – We underwrite the deal, not your day job
✅ Flexible terms – Tailored to your investment strategy
✅ Investor-friendly service – Real people who understand real estate
Ready to unlock the full potential of your rental income?
Contact QuickLend Capital today and let’s build your real estate empire—one property at a time.