Non-QM Lending · Nationwide
DSCR Loans for Real Estate Investors
Qualify for an investment property loan using the property's rental income — not your personal income. No tax returns, no W-2s, no debt-to-income ratio. Direct Fund USA offers DSCR loans with no minimum ratio requirement and 30-year fixed rates.
$75K–$3M
Loan amounts
30-yr
Fixed rate available
660
Min FICO score
No min
DSCR ratio required
What Is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is an investment property mortgage that qualifies borrowers based on the rental income of the property — not the borrower's personal income, tax returns, or employment history.
The DSCR is calculated by dividing the property's gross monthly rental income by its total monthly debt obligations (PITIA: principal, interest, taxes, insurance, and HOA). A ratio of 1.0 means the property breaks even; above 1.0 means positive cash flow.
DSCR loans are the preferred financing tool for self-employed investors, those with multiple properties, and anyone whose tax returns don't reflect their true earning power. Direct Fund USA has no minimum DSCR ratio — we evaluate the full deal.
DSCR Formula
DSCR = Gross Rent ÷ PITIA
Example: $2,000/mo rent ÷ $1,600/mo PITIA = 1.25 DSCR (positive cash flow)
Qualify on Rental Income
DSCR loans use the property's rental income to qualify — not your W-2 or tax returns. Perfect for investors with complex income structures.
No Minimum DSCR Ratio
Unlike many lenders who require a 1.0+ DSCR, we have no minimum ratio requirement. We evaluate the full picture of the deal.
Foreign Nationals Welcome
We offer DSCR loans to foreign nationals investing in U.S. real estate. No U.S. credit history required.
Close in 2–3 Weeks
Our DSCR loans close in 2–3 weeks — significantly faster than conventional investment property loans.
DSCR & Non-QM Loan Programs
We offer multiple Non-QM programs for investors who need flexible qualification criteria.
DSCR Purchase
Finance the acquisition of a rental property using projected rental income — not your personal income. Ideal for investors building a buy-and-hold portfolio.
- $75K–$3M loan amount
- 30-year fixed rate
- No minimum DSCR ratio
- SFR, 2–4 units, condotel
DSCR Cash-Out Refinance
Tap equity in your existing rental properties to fund new acquisitions, renovations, or other investments. No income docs required.
- Up to 75% LTV cash-out
- Qualify on rental income
- No tax returns needed
- Nationwide coverage
DSCR Rate & Term Refinance
Refinance an existing investment property loan to a better rate or longer term without income verification. Stabilize your cash flow.
- Lower your rate
- 30-year amortization
- No income verification
- Foreign nationals OK
Bank Statement Loans
For self-employed borrowers and business owners who can't show traditional income. Qualify using 12–24 months of bank statements instead of tax returns.
- Up to $3.5M
- Up to 90% LTV
- Up to 50% DTI
- 12 or 24 month statements
DSCR Loan vs. Conventional Investment Property Loan
| Feature | DSCR Loan (Direct Fund USA) | Conventional Loan |
|---|---|---|
| Income verification | Not required | Required (W-2, tax returns) |
| Qualification basis | Property rental income | Borrower DTI ratio |
| Self-employed friendly | ✓ Yes | ✗ Difficult |
| Foreign nationals | ✓ Yes | ✗ No |
| Multiple properties | ✓ No limit | ✗ 10-property cap |
| Time to close | 2–3 weeks | 30–45 days |
| Loan amounts | $75K–$3M | Up to $766,550 (conforming) |
| Property condition | Flexible | Must be habitable |
DSCR Loan FAQs
What is a DSCR loan?
A DSCR loan (Debt Service Coverage Ratio loan) is a type of investment property mortgage that qualifies borrowers based on the rental income of the property rather than the borrower's personal income. The DSCR is calculated by dividing the property's gross rental income by its total debt obligations (principal, interest, taxes, insurance, and HOA). A ratio above 1.0 means the property generates more income than it costs to carry.
What DSCR ratio does Direct Fund USA require?
Direct Fund USA has no minimum DSCR ratio requirement. We evaluate each deal holistically, considering the property value, borrower credit, and market rental rates. This makes us one of the most flexible DSCR lenders in the market.
What credit score do I need for a DSCR loan?
We require a minimum 660 FICO score for DSCR loans. This is lower than many conventional investment property lenders, making our program accessible to a wider range of investors.
What property types qualify for DSCR loans?
We offer DSCR loans on single-family residences (SFR), 2–4 unit properties, condominiums, and condotels. For 5–8 unit properties, we also have programs available. We do not offer DSCR loans on commercial properties or properties with more than 8 units.
Can foreign nationals get a DSCR loan?
Yes. Direct Fund USA offers DSCR loans to foreign nationals investing in U.S. real estate. We do not require U.S. credit history or a Social Security number. Contact us for specific documentation requirements.
How is a DSCR loan different from a conventional investment property loan?
A conventional investment property loan (like a Fannie Mae or Freddie Mac loan) requires full income documentation — W-2s, tax returns, and a debt-to-income ratio calculation. A DSCR loan skips all of that and qualifies you based solely on the rental income the property generates. This is ideal for self-employed investors, those with multiple properties, or anyone whose tax returns don't reflect their true income.
What are the rates on DSCR loans?
DSCR loan rates are typically higher than conventional owner-occupied mortgage rates but competitive within the investment property lending market. We offer 30-year fixed rates. Contact us for a current rate quote based on your specific deal.
How long does it take to close a DSCR loan?
Our DSCR loans typically close in 2–3 weeks from application. This is faster than most conventional investment property loans, which can take 30–45 days or more.
Get a DSCR Loan Quote Today
Submit your deal details and our team will respond same day with a rate and term quote. No obligation, no income docs required.
Apply for a DSCR Loan