DSCR Loan Guide: No Income Mortgage Loan for Multi-Unit Rental Properties
Investing in multi-unit rental properties can be a lucrative strategy for generating passive income, but securing financing can be a major hurdle—especially for borrowers who don’t have traditional income documentation. This is where Debt Service Coverage Ratio (DSCR) loans come in. These no-income verification loans allow real estate investors to qualify for financing based on their property’s rental income rather than personal income.
In this guide, we’ll break down everything you need to know about DSCR loans for multi-unit rental properties, including:
✅ What DSCR Loans Are & How They Work
✅ Who Qualifies for a DSCR Loan
✅ Key Benefits of No-Income DSCR Loans
✅ DSCR Loan Requirements & Terms
✅ Step-by-Step Process to Secure a DSCR Loan
✅ Where to Find DSCR Loan Lenders
By the end of this guide, you’ll have a clear roadmap for using a DSCR loan to finance your next multi-unit rental property—without the hassle of proving personal income.
What Is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is a no-income mortgage designed for real estate investors. Instead of using personal income (W-2s, tax returns, or pay stubs), lenders determine eligibility based on the property’s rental income compared to the debt obligations.
How DSCR Works
Lenders use the Debt Service Coverage Ratio (DSCR) formula to assess a property’s ability to cover its mortgage payments:
[
DSCR = \frac{\text{Gross Rental Income}}{\text{Monthly Debt Obligations (PITI)}}
]
- A DSCR of 1.0 means the property breaks even (rental income = mortgage payment).
- A DSCR above 1.0 means the property generates positive cash flow.
- A DSCR below 1.0 means the property does not generate enough income to cover the mortgage.
Most DSCR lenders require a minimum ratio of 1.0 to 1.25, but some offer No-Ratio DSCR Loans, which means they don’t require a minimum DSCR.
Who Qualifies for a DSCR Loan?
DSCR loans are ideal for:
✔ Real estate investors with multiple rental properties
✔ Self-employed borrowers with complex tax returns
✔ Foreign investors with no U.S. income history
✔ Retirees investing in rental properties
✔ House flippers & Airbnb hosts looking for easy financing
Unlike traditional mortgages, DSCR loans allow investors to qualify based on rental income alone, making them an excellent option for those who may have high expenses, tax write-offs, or variable income.
Key Benefits of DSCR No-Income Mortgage Loans
✅ No Income Verification Required
You don’t need tax returns, W-2s, pay stubs, or employment verification to qualify.
✅ Fast & Streamlined Approval Process
DSCR loans close much faster than conventional loans, often within 2 to 4 weeks.
✅ Ideal for Multi-Unit Properties
DSCR loans work well for duplexes, triplexes, fourplexes, and large apartment buildings.
✅ Use for Airbnb & Short-Term Rentals
Many DSCR lenders allow vacation rentals, Airbnbs, and short-term rental income to qualify.
✅ Finance LLC-Owned Properties
Unlike traditional loans, DSCR lenders allow purchasing or refinancing under an LLC for asset protection.
✅ Flexible Property Types
DSCR loans can finance:
✔ Single-family rentals (SFRs)
✔ Multi-unit buildings (2-4 units, 5+ units)
✔ Mixed-use properties
✔ Airbnbs & short-term rentals
✔ Condos & townhomes
✅ No Limits on the Number of Mortgages
Traditional loans limit the number of financed properties (often 10). DSCR loans allow unlimited rental properties.
DSCR Loan Requirements & Terms
Lenders offering DSCR loans each have different requirements, but here’s what to expect:
1. Credit Score Requirements
- Minimum credit score: 680+
- Some lenders may accept 620+ with higher rates
2. Loan-to-Value (LTV) Limits
- Purchase: Up to 80% LTV
- Refinance: Up to 75% LTV
- Cash-Out Refinance: 65-70% LTV
3. DSCR Ratio Requirements
- Typical minimum DSCR: 1.0 – 1.25
- No-Ratio DSCR Loans available (ideal for properties not yet generating rental income)
4. Loan Amounts
- Minimum: $100,000
- Maximum: $5M+ (depends on lender)
5. Loan Terms
- Interest Rates: Typically prime + 1-2%
- Fixed & Adjustable-Rate Options available (5/1 ARM, 30-year fixed, etc.)
- Prepayment Penalties May Apply (Check lender terms)
6. Property Appraisals
- Desktop or Full Appraisal Required
- Rent schedule (Form 1007) may be needed to estimate rental income
7. Down Payment Requirements
- Typically 20-25% down for purchases
- Lower down payments may be available for strong borrowers
How to Get a DSCR Loan for Multi-Unit Rental Properties
If you’re interested in securing a DSCR no-income loan, follow these steps:
Step 1: Check Your Credit Score
Ensure you meet the minimum credit score requirement (typically 680+).
Step 2: Estimate Your DSCR Ratio
Use this formula:
[
\text{DSCR} = \frac{\text{Monthly Gross Rent}}{\text{Monthly Mortgage Payment (PITI)}}
]
If your DSCR is 1.0 or higher, you’ll likely qualify. If below 1.0, look for a No-Ratio DSCR loan.
Step 3: Gather Property Information
Lenders will ask for:
✔ Property address & type
✔ Lease agreements (if applicable)
✔ Current rent roll or rental income estimate
Step 4: Apply with a DSCR Lender
Since banks don’t offer DSCR loans, work with a private lender, mortgage broker, or direct non-QM lender specializing in investor loans.
Step 5: Get an Appraisal & Approval
Lenders will order an appraisal and rent schedule to confirm property value and rental income.
Step 6: Close & Fund Your Loan
Once approved, DSCR loans fund within 2 to 4 weeks—much faster than conventional loans.
Where to Find DSCR Loan Lenders
Since traditional banks don’t offer DSCR loans, you’ll need to work with:
✔ Direct private lenders
✔ Mortgage brokers specializing in investor financing
✔ Hard money lenders (short-term DSCR options)
✔ Online non-QM mortgage lenders
Final Thoughts: Is a DSCR Loan Right for You?
If you’re a real estate investor looking for a simple, fast, and no-income verification mortgage, a DSCR loan can be an excellent solution. These loans allow you to qualify based on rental income, making them ideal for multi-unit rental property investors who prefer hassle-free financing.
🚀 Looking to finance your next rental property? Start exploring DSCR loan options today! 🚀
GHC Funding Offers NO INCOME VERIFICATION MORTGAGE LOAN for Multi-Unit Rental Properties
Investing in multi-unit rental properties has never been easier, thanks to GHC Funding’s innovative approach to financing. If you’re an investor looking to expand your portfolio without the hassle of traditional income verification requirements, the NO INCOME VERIFICATION MORTGAGE LOAN from GHC Funding might be the perfect solution for you.
What Is a NO INCOME VERIFICATION MORTGAGE LOAN?
A NO INCOME VERIFICATION MORTGAGE LOAN allows borrowers to secure financing for real estate investments without needing to provide traditional income documentation, such as pay stubs or tax returns. This type of loan is ideal for investors who may have non-traditional income streams or prefer a streamlined approval process.
Why Choose GHC Funding?
GHC Funding understands the unique needs of real estate investors. Their NO INCOME VERIFICATION MORTGAGE LOAN is designed specifically for those looking to purchase or refinance multi-unit rental properties. Here are some reasons why GHC Funding stands out:
- Streamlined Approval Process
Say goodbye to lengthy paperwork and complicated financial disclosures. GHC Funding evaluates your loan application based on the property’s potential income, equity, and overall value, rather than your personal income. - Focus on Property Performance
With this loan, the emphasis is placed on the rental income potential of the property. This makes it an excellent option for experienced investors who understand the value of cash-flowing rental properties. - Flexibility
Whether you’re looking to acquire new properties or refinance existing ones, GHC Funding offers flexible terms that cater to your investment goals. - Fast Closings
Time is money in real estate. GHC Funding ensures a quick and efficient closing process, helping you secure deals and grow your portfolio without unnecessary delays.
Benefits for Investors
The NO INCOME VERIFICATION MORTGAGE LOAN is a game-changer for investors. Here are some of the top benefits:
- Accessible Financing: Ideal for self-employed individuals, business owners, or retirees who may not have traditional income documentation.
- Expand Your Portfolio Faster: Without income verification requirements, you can move quickly on profitable opportunities.
- Leverage Rental Income: The property’s rental income potential is a key factor in loan approval, making it perfect for multi-unit investments.
Is This Loan Right for You?
If you’re an investor with a keen eye for profitable rental properties and want to avoid the hurdles of traditional loan qualifications, GHC Funding’s NO INCOME VERIFICATION MORTGAGE LOAN may be a great fit. Whether you’re a seasoned investor or just starting out, this loan offers the flexibility and speed you need to succeed in today’s competitive real estate market.
Get Started Today
Don’t let paperwork hold you back from achieving your investment goals. Contact GHC Funding today to learn more about their NO INCOME VERIFICATION MORTGAGE LOAN for multi-unit rental properties. Take the next step toward building your real estate empire with a financing solution that works for you!
