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! 🚀
Unlock Investment Opportunities with GHC Funding’s No Income Verification Mortgage Loan for Multi-Unit Rental Properties
Investing in multi-unit rental properties is one of the most effective ways to build wealth and generate passive income. However, traditional mortgage lending requirements often present significant hurdles for investors, especially when it comes to income verification. At GHC Funding, we understand these challenges, which is why we’re excited to offer our No Income Verification Mortgage Loan specifically tailored for multi-unit rental properties.
What is a No Income Verification Mortgage Loan?
A No Income Verification Mortgage Loan eliminates the need for borrowers to provide extensive proof of income, such as tax returns, W-2s, or pay stubs. Instead, the focus is on the value of the property itself and its income-generating potential. This streamlined approach makes it easier for real estate investors to secure financing without the cumbersome paperwork or delays associated with traditional loans.
Why Choose GHC Funding?
At GHC Funding, we specialize in providing flexible and innovative financial solutions for real estate investors. Our No Income Verification Mortgage Loan is designed to support your goals, not limit them. Here’s how we stand out:
- Fast and Efficient Approval Process
Forget the lengthy underwriting process of conventional lenders. Our streamlined application process ensures you can secure financing quickly and start focusing on growing your rental portfolio. - No Income Documentation Required
Whether you’re self-employed, own multiple businesses, or simply don’t want to deal with the hassle of income verification, our loan program eliminates this barrier. - Focus on Property Potential
Instead of scrutinizing your personal financial history, we evaluate the value of the property and its rental income potential. This makes it easier to qualify for financing, even if your income is complex or inconsistent. - Competitive Loan Terms
We offer attractive rates and terms, ensuring you can maximize your investment returns while maintaining manageable monthly payments.
Who Can Benefit from This Loan?
Our No Income Verification Mortgage Loan is ideal for a variety of real estate investors, including:
- Seasoned Investors looking to expand their multi-unit rental portfolio without the constraints of traditional lending.
- Self-Employed Individuals who may find it difficult to meet conventional income documentation requirements.
- First-Time Investors who want a simplified path to owning income-generating properties.
- Real Estate Professionals who prefer a property-focused lending approach.
Why Invest in Multi-Unit Rental Properties?
Multi-unit rental properties are a smart investment choice because they offer steady cash flow, long-term appreciation, and the ability to scale your real estate portfolio quickly. With multiple tenants contributing to rental income, these properties are often more stable and profitable compared to single-unit investments.
How to Get Started
Getting started with GHC Funding’s No Income Verification Mortgage Loan is simple:
- Contact Us – Reach out to one of our experienced loan specialists to discuss your investment goals and property details.
- Submit Your Application – Provide basic information about the property you’re looking to finance.
- Receive Approval – Once approved, we’ll guide you through the closing process so you can secure your loan and focus on your investment.
Final Thoughts
At GHC Funding, we’re committed to empowering real estate investors with the tools and resources they need to succeed. Our No Income Verification Mortgage Loan is more than just a financing option—it’s a gateway to greater investment opportunities and financial freedom.
If you’re ready to take the next step in your real estate journey or want to learn more about how we can help, contact GHC Funding today. Let us help you turn your multi-unit rental property dreams into reality!
