Debt Service Coverage Ratio (DSCR) loans have revolutionized real estate investing by allowing investors to qualify based on property income rather than personal income. Here's everything you need to know.
What is a DSCR Loan?
A DSCR loan qualifies you based on the rental income the property generates, not your W-2 income or tax returns. This makes it ideal for self-employed investors and those with complex tax situations. Explore our DSCR Loan options.
How DSCR is Calculated
DSCR = Monthly Rental Income / Monthly Debt Obligations
For example:
- Monthly rent: $3,000
- Monthly PITI payment: $2,400
- DSCR = 3,000 / 2,400 = 1.25
Most lenders require a minimum DSCR of 1.0 to 1.25. Use our free DSCR Calculator to estimate your ratio.
Benefits of DSCR Loans
No Income Verification
Unlike conventional loans, DSCR loans don't require:
- Tax returns
- W-2s
- Pay stubs
- Employment verification
Flexible Property Types
DSCR loans work for:
- Single-family rentals
- 2-4 unit properties
- Condos and townhomes
- Portfolio refinances
Cash-Out Options
Access up to 75% LTV on cash-out refinances to fund renovations or acquire additional properties.
Who Should Use DSCR Loans?
DSCR loans are perfect for:
- Self-employed real estate investors
- Those with multiple rental properties
- Investors who write off significant expenses
- Anyone who wants to scale their portfolio quickly
Other Zeus Financing Options
While DSCR loans are excellent for stabilized rentals, we also offer:
- Fix & Flip Loans for renovation projects (90-95% LTC)
- Working Capital (MCA) for business needs
- Invoice Factoring for cash flow
- Business HELOC for flexible capital access
- Commercial Capital for comprehensive solutions
Get Expert Guidance
Thomas Moore, founder of Zeus Commercial Capital, brings decades of real estate investment experience. He's also the founder of Scale Society, a private entrepreneurial ecosystem helping investors build skills, create wealth, and grow together.
Apply Today
Ready to finance your next investment property? Contact Zeus Commercial Capital:
- Phone: (800) 516-1153
- Address: 1515 Mockingbird Lane, Suite 420, Charlotte, NC 28209
- Facebook: facebook.com/zeuscommercial
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