Real Estate Investors

DSCR Loans: Let the Property Qualify, Not Your Paycheck

A DSCR loan qualifies you on the property's rental income instead of your paycheck — no tax returns, no W-2s, no pay stubs. Some programs can still close a property that doesn’t fully cover its own payment.

Talk to Andrew About DSCR Loans

What a DSCR Loan Is

A DSCR (Debt Service Coverage Ratio) loan is an investment property mortgage that qualifies you on the property's income instead of yours. No tax returns, no W-2s, no pay stubs. The core question is how the property’s income compares to the payment.

DSCR = monthly rent ÷ monthly payment (principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means the rent exactly covers the payment. Some programs don’t require a minimum ratio — Andrew works with no-ratio and sub-1.0 programs where they fit, so a property that doesn’t fully cover its payment can still close, often with a larger down payment or added reserves. Requirements vary by lender.

How It Works

1

Gather Your Property Documents

Provide the lease (or let the appraiser establish market rent), an insurance quote, entity documents if you're buying in an LLC, and authorize a credit check — a fraction of the paperwork a conventional investment loan requires.

2

Andrew Calculates Your DSCR

Andrew divides the property's monthly rent by the full monthly payment — principal, interest, taxes, insurance, and HOA — to find your Debt Service Coverage Ratio and see which programs may fit.

3

Get Pre-Approved and Shop

With a DSCR pre-approval in hand, you can move on investment properties with confidence, often closing in an LLC or entity name.

4

Compare Your Options and Close

DSCR pricing typically runs a bit higher than conventional financing, and down payment requirements are stiffer. If you can document income conventionally, Andrew runs both paths and shows you the difference — sometimes conventional wins, sometimes the speed and simplicity of DSCR is worth it. That comparison happens before he recommends anything.

🏠

Qualify on Rental Income

The lender looks at the actual lease or market rent from the appraisal — not your personal income documents or employment history.

📁

No Personal Income Documents

No tax returns, no W-2s, no pay stub verification required. The property's income does the qualifying.

🔄

Purchases, Refinances, and Cash-Out

Available for purchases and refinances, including cash-out on properties you already own.

🏢

Close in an LLC or Entity Name

Most DSCR programs can typically close in an entity name — common for investors scaling a portfolio.

📅

30-Year Fixed and Other Terms

30-year fixed and other term options are typically available; short-term rental income may be considered on some programs.

📈

Built for Growing Portfolios

Designed for investors scaling past conventional financed-property limits, or whose tax returns don't tell the whole story.

Financing Rentals in Middle Tennessee

I help investors finance rentals across Nashville, Franklin, Spring Hill, Columbia and the rest of Maury County, whether it’s your first rental or your tenth.

Where you buy changes the math. Taxes, insurance and HOA dues all count in the payment, and they vary by county and neighborhood. Two similar homes renting for the same amount in Davidson and Maury County can land on different ratios, so I run the numbers on the exact address before you make an offer.

Investors usually come to me to:

✓ Buy a long-term rental using the current lease or the appraiser’s market rent.
✓ Refinance a rental you bought with cash or fixed up, and pull out equity for the next one.
✓ Keep growing after hitting the conventional limit on financed properties, often in an LLC.
✓ Buy into Middle Tennessee from out of state.

With access to 40+ wholesale lenders, I can compare DSCR options across the lenders that offer them.

Planning a short-term rental? I check how lenders will evaluate the rental income; you’ll also need to verify local short-term-rental rules for the address.

Want the bigger picture? Read my DSCR Investor’s Guide for Nashville & Middle Tennessee.

Typical Qualification Parameters

No-Ratio
Programs Available
20%+
Typical Down Payment
LLC
Entity Closings Available
30-yr
Fixed Term Options

This Loan Is Perfect For...

✓ Self-employed investors whose tax returns don't tell the full story
✓ Investors scaling past the conventional financed-property limit
✓ Buyers purchasing through an LLC or entity
✓ Out-of-state investors buying into Middle Tennessee's rental market
✓ Investors who write off aggressively on their taxes
✓ Anyone told their income doesn't qualify for a property that pays for itself

Let the Rent Do the Talking

Want to see whether a property covers its own payment? Run it through my mortgage calculator in about a minute, or answer ten quick questions and I'll tell you which loan direction looks strongest — no credit pull.

Start Your DSCR Pre-Qual

A DSCR loan — short for debt-service coverage ratio loan — qualifies you based on a rental property's income rather than your personal income or tax returns. Lenders compare the property's expected rent to its monthly mortgage payment; if the rent covers the payment (or comes close, depending on the program), you can often qualify without W-2s, pay stubs, or tax returns.

Requirements vary by lender, but most programs weigh your credit score, down payment, and the property's rent-to-payment ratio more heavily than personal income documentation. I'll walk you through exactly what a specific lender needs once we know the property and your goals.

Often, yes — a growing number of DSCR programs will underwrite short-term rental income (Airbnb/VRBO) using market rent data or platform history, which matters here given how active the short-term rental market is around Nashville and its surrounding counties. Not every lender treats short-term rental income the same way, so this is worth confirming property-by-property.

Because DSCR loans qualify off the property rather than your personal debt-to-income ratio, investors are often able to hold several at once — the specific cap depends on the lender and your overall portfolio. This is one of the main reasons investors scaling a rental portfolio in Middle Tennessee gravitate toward this program.

Investing outside Thompson's Station? I work with rental property buyers across Spring Hill, Columbia, and Franklin

, and for self-employed investors, my Bank-Statement Loan program is often worth a look too.