A DSCR loan qualifies you based on the debt service coverage ratio: whether the property rent covers its monthly payment. No tax returns, W-2s or pay stubs are needed to show personal income.
Qualify on the property rental income instead of your tax returns, W-2s or pay stubs.
Many DSCR programs let you take title in your LLC or business entity to keep investments separate.
Finance long-term rentals, and in many cases short-term or vacation rentals, using lease or market rent.
Buy a new rental or pull equity out of one you own to fund your next investment.
Unlike conventional loans, DSCR programs typically do not cap how many financed properties you own.
Choose a fixed rate, an adjustable rate or interest-only options to match your strategy.
DSCR loans are designed for real estate investors. Most borrowers need:
An Investment Property – DSCR loans are for rentals, not the home you live in.
Enough Rental Income – Rent that comfortably covers the monthly payment.
A Down Payment – The amount depends on your credit and the property.
A Solid Credit History – Stronger credit can mean better pricing.
Cash Reserves – Some savings left over after closing.
Answer a few quick questions about your plans, and a Woodcrest loan officer will reach out with options tailored to this loan program.
Answers to the questions investors ask most about DSCR loans in Colorado.
DSCR stands for debt service coverage ratio. It compares the property monthly rent with its monthly payment, including taxes, insurance and any HOA. The more the rent covers the payment, the stronger the loan.
No. DSCR loans qualify you on the rental income of the property, so you do not need to provide tax returns, W-2s or pay stubs to verify personal income.
Many DSCR programs allow short-term and vacation rentals, using rental history or a market rent estimate. Local rules for short-term rentals still apply.
No. DSCR loans are only for investment properties. For a home you will live in, see our conventional, FHA or VA loan options.
