Investment Property Financing That Qualifies on the Property, Not Just Your W-2

What is a DSCR loan?

DSCR stands for Debt Service Coverage Ratio, and the math is as simple as it sounds: take the property's monthly rental income and divide it by the property's monthly mortgage payment — principal, interest, taxes, insurance, and HOA dues, together known as PITIA. That single number is the whole qualification story.

A DSCR of 1.0 means the rent covers the payment exactly. Above 1.0 the property throws off positive cash flow, and lenders price it better. Below 1.0 the property runs a shortfall each month, though many lenders still write loans down to a DSCR of 0.75 to 1.0 depending on the program, the down payment, and the borrower's reserves.

DSCR loans qualify on the property's cash flow — no tax returns, W-2s, or personal income verification required. That said, they are not no-documentation loans. Credit score minimums apply, as do down payment and cash reserve requirements, and the appraisal typically includes a market rent schedule the lender will use instead of, or alongside, your lease.

This structure is ideal for self-employed investors and for anyone holding multiple properties, because those are precisely the borrowers whose tax returns understate reality. Depreciation, cost segregation, and legitimate business write-offs can make a genuinely profitable portfolio look thin on a 1040. A DSCR loan sidesteps that problem by asking a different question: does this property pay for itself?

DSCR calculator

Run the ratio on a property you're considering before you write the offer.

Why Santa Clara County investors work with a local broker

• Real rent comps, not national averages

  A DSCR file lives or dies on the appraiser's market rent figure. Knowing what a Willow Glen duplex or a Santa Clara townhome actually rents for lets us set expectations before the appraisal comes back — and challenge it with local data when it comes back low.

• Prop 13 and the reassessment reality

  Your seller's property tax bill is not the one you'll inherit. A purchase triggers reassessment at market value, which can add hundreds a month to PITIA and move your DSCR by a tenth of a point or more. We underwrite to the reassessed number from day one.

• City-by-city rental rules

  San Jose has its own rent stabilization and tenant protection ordinances; other cities in the county handle short-term rentals and multi-unit properties differently. Those rules affect both your projected income and how a lender views the asset.

• One dual-licensed advisor for the deal and the loan

  Because I'm licensed as both a real estate broker and a mortgage broker, the same person can help you evaluate and source the property and structure the financing — no handoffs, no conflicting timelines.

Investment loan options

• DSCR Purchase Loans

  Buy a rental qualifying on projected market rent instead of tax returns. Typically 20–25% down with credit and reserve minimums.

• DSCR Cash-Out Refinance →

  Pull equity out of a performing rental to fund the next acquisition, again without personal income documentation.

• Bank Statement Investor Loans →

  For self-employed investors who'd rather qualify on twelve to twenty-four months of deposits than on write-off-heavy returns.

• Bridge / Hard Money for Fast Acquisitions →

  Short-term, asset-based financing when the deal needs to close in days, then refinance into a DSCR loan once it's stabilized.

• Multi-Unit (2–4 Unit) Financing →

  Duplexes through fourplexes, whether owner-occupied with rental offset or held purely as investment under DSCR guidelines.

Frequently asked questions

Related pages

• Hard Money & Bridge Loans →

  Fast, asset-based capital for acquisitions that can't wait on full underwriting.

• Self-Employed & Bank-Statement Loans →

  Qualify on deposits or assets when tax returns understate your real cash flow.

• Home Equity Options →

  Tap equity in a property you already own to fund the down payment on the next one.

• Mortgage Broker in San Jose →

  The county's deepest rental market — and its widest range of rent comps.

• Mortgage Broker in Santa Clara →

  Strong tenant demand near the tech corridor and Santa Clara University.

• Mortgage Broker in Campbell →

  Small multi-unit and condo rentals with steady long-term occupancy.