DSCR Loans for Real Estate Investors
Finance your rental property based on its income, not your personal tax returns. Norfolk Capital's DSCR loans qualify on rental performance, cover one to nine unit properties including short-term rentals, and are available in more than thirty states.
What Is a DSCR Loan?
A DSCR loan (debt service coverage ratio loan) is a rental property loan that qualifies the borrower on the income the property generates rather than personal income. The lender asks one central question: does the rent cover the proposed loan payment? There are no W-2s, tax returns or employment verification, which makes DSCR financing the standard tool for investors who are self-employed, who have complex returns, or who are expanding beyond the handful of loans a conventional bank will allow.
Norfolk Capital has decades of experience as real estate developers and private lenders. Our DSCR program is designed for income-producing property and structured around asset performance, investor experience and long-term growth. We tailor each loan to fit your investment strategy, your timeline and the property's numbers, whether you own one rental or a portfolio across several states.
Apply NowAdvantages of Our DSCR Loans
Our DSCR programs are structured around asset performance, investor experience and long-term growth strategy. Apply now for a fast review of your rental property.
Qualify on rental income
Approval is based on the property's rent, not W-2s or tax returns. Your personal income never enters the calculation.
Flexible ratios, as low as 0.75x
A property that does not fully cover its payment today can still be financed when the rest of the deal is strong.
1 to 9 unit properties
Single-family rentals, condos, two-to-four unit buildings and small multifamily, all under one program.
Short-term and vacation rentals
Airbnb and vacation properties qualify on documented booking history or market rent analysis.
Fast, streamlined underwriting
With no personal income file to build, approvals move on the appraisal and rent analysis rather than months of paperwork.
Built for portfolio expansion
Competitive investor-focused rates and flexible structuring so you can keep adding doors without hitting a bank's property cap.
Interest rates and terms are determined based on property performance, borrower experience, leverage and overall risk profile.
Get a QuoteWho Are DSCR Loans Designed For?
DSCR loans are built for real estate investors focused on long-term rental income and portfolio growth. By qualifying on rental income and projected cash flow, they let you scale without the constraints of traditional lending models.
- Buy-and-hold investors acquiring stabilized rental properties, one at a time or several at once.
- Flippers turning into landlords who want to refinance a completed renovation into a hold strategy and pull their capital back out. Start with a fix and flip loan, exit into DSCR.
- Self-employed borrowers and investors with complex tax returns whose real income does not show up on a bank's worksheet.
- Portfolio builders expanding a multifamily or single-family rental portfolio past a conventional lender's loan count.
- Short-term rental operators financing vacation properties on booking performance.
New to the concept? Read what is a DSCR loan or our DSCR loan program overview.
Apply Now
One Lender From Acquisition to Long-Term Hold
Buy with a bridge or fix and flip loan, renovate with draw-based funding, then refinance into a DSCR rental loan without changing lenders. Fewer handoffs, faster closings and a team that already knows the property.
Refinance Into DSCRHow the Debt Service Coverage Ratio Works
The ratio measures a property's ability to cover its debt with rental income: net operating income divided by the total loan payment. A ratio of 1.0 means the property breaks even. A ratio of 1.25 means it generates a quarter more income than the payment. Below 1.0, the owner covers the difference, which our program allows down to 0.75x when the rest of the deal supports it.
| DSCR loan | Conventional mortgage | |
|---|---|---|
| Qualifies on | Property cash flow | Personal income and debt-to-income |
| Income documents | Leases, rent roll or market rent | Tax returns, W-2s, pay stubs |
| Borrower | LLC or corporate entity | Individual |
| Property use | Investment only, long or short-term rental | Primary residence or limited investment |
| Portfolio size | Built to scale | Capped after a few financed properties |
| Speed | Faster, asset-focused | Slower, income-focused |
DSCR Loan FAQs
What is a DSCR loan?
A DSCR loan is a rental property loan that qualifies the borrower on the income generated by the property rather than personal income. The lender evaluates whether the property's rental income covers the proposed loan payment. These loans are designed for real estate investors, not owner-occupants, and are typically held in an LLC or other entity.
What does DSCR stand for in real estate?
DSCR stands for debt service coverage ratio. It measures a property's ability to cover its debt obligations using rental income. The formula is net operating income divided by the total debt payment. A ratio above 1.0 means the property generates more than enough income to cover the loan.
Which states do you offer DSCR loans in?
Norfolk Capital offers DSCR rental loans in AL, AK, AR, CO, CT, DE, DC, GA, HI, IL, IN, KY, LA, ME, MD, MA, MI, MS, MO, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, WA, WV, WI and WY. We are headquartered in Boston and bring the same program and team to rental property across the country.
Is a DSCR loan the same as a conventional mortgage?
No. Conventional mortgages qualify borrowers on personal income and debt-to-income ratio and are primarily built for owner-occupants. DSCR loans qualify on the rental property's cash flow, are made to investment entities and are designed specifically for investment property.
Can I hold the property in an LLC?
Yes. In fact, we lend only on non-owner-occupied property held by a corporate entity such as an LLC. Borrowing through an entity is standard for DSCR loans and is one of the reasons investors prefer them to conventional financing.
Can I use a DSCR loan to cash out equity from a rental?
Yes. Investors use DSCR loans to refinance stabilized rentals, pull cash out for the next acquisition, or replace short-term bridge or hard money financing with long-term rental debt. The property's rent and value drive the amount available.
How much do I need to put down on a DSCR loan?
Leverage depends on the property's coverage ratio, your experience, credit profile and the property type. Stronger cash flow and a longer track record generally support higher leverage. Because every deal is priced on its own numbers, the fastest way to know your down payment is to apply with the property details and let us structure a quote.
Can I finance several rental properties at once?
Yes. Our DSCR program is built for portfolio expansion. Each property qualifies on its own income, so the number of loans you already carry is not the barrier it is with a conventional lender. Talk to us about the properties you are targeting and we will structure the financing around your growth plan.
What documents do I need for a DSCR loan?
Typically the purchase contract or current mortgage statement, leases or a rent roll (or booking history for a short-term rental), property insurance, bank statements showing reserves, a schedule of real estate you own and your entity documents. No tax returns, W-2s or employment verification are required.
Call us or apply now for a free consultation about your rental property.
Where We Offer DSCR Loans
Nationwide rental financing with a home base in Boston. Local pages for our most active markets are linked below.
States we lend in
Local market pages
Related financing: fix and flip loans, bridge loans and long-term loans.
Scale Your Rental Portfolio
Apply online for a fast review of your property, or call for a free consultation.
