DSCR Loans
For real estate investors Rental-Income-Based Financing
DSCR Loans
For Real Estate Investors – Rental Income-Based Financing
DSCR Loans
Let your rental income cover your loan with Alto Capital’s DSCR Loans. We finance your investment without requiring personal tax returns.
A DSCR Loan (Debt Service Coverage Ratio) is a real estate financing solution designed for investors looking to acquire or refinance rental properties. Unlike traditional loans, approval is based on the property’s ability to generate enough income to cover its debt obligations, rather than focusing on the borrower’s personal income.
Why choose our DSCR loans
Qualification based on property income: No personal income verification or tax returns required
Flexible terms: Fixed-rate options up to 30 years to stabilize long-term investments
Simplified process: Less paperwork, faster approval than traditional loans
Available for international investors: Foreign investors are accepted with minimal rate adjustments
DSCR loans requirements
Bank statements: Last 3 months
Official ID: Passport, visa (for foreign investors)
Business documents: LLC or Corp registration, EIN, and operating agreement
Renovation budget (if applicable)
Liquidity reserves: 6 months of cash reserves
Non-owner occupancy certification
Credit report & background check: SSN required
Insurance coverage: Full replacement coverage + $500K liability, plus builder’s risk insurance (if applicable)
Minimum credit score: 680
Signed loan application
Purchase contract (if applicable)
DSCR Loan FAQ
What is a DSCR loan, and how does it work for real estate investors?
A DSCR (Debt Service Coverage Ratio) loan is a type of real estate investment loan based primarily on the property’s cash flow—not your personal income. Lenders, like Alto Capital, use your property’s rental income to determine if it can cover the debt payments. It’s a great option for investors who want to scale without traditional income documentation.
What is a good DSCR ratio for loan approval?
A DSCR of 1.25 or higher is considered strong, meaning the rental income covers 125% of the loan’s monthly payments. At Alto Capital, we work with investors on a case-by-case basis and may approve lower DSCRs depending on the deal’s strength, asset type, and borrower experience.
What types of properties can be financed with a DSCR loan?
DSCR loans are typically used for long-term rental properties, including:
- Single-family homes
- Multifamily (2–4 units)
- Condos or townhomes
- Planned Unit Development (PUD)
At Alto Capital, we offer flexible DSCR loan solutions across various property types in investor-friendly markets.
Can I qualify for a DSCR loan without W-2 income or tax returns?
Yes. That’s the main benefit of DSCR loans. At Alto Capital, we don’t require personal income verification, tax returns, or pay stubs. If your rental property cash flows well, you may qualify—making it ideal for self-employed investors, LLCs, and portfolio builders.
How much can I borrow with a DSCR loan through Alto Capital?
Loan amounts depend on the property’s appraised value and its rental income. At Alto Capital, we offer up to 80% Loan-to-Value (LTV) on DSCR loans—helping you leverage more capital with less hassle.
How do I calculate DSCR for my rental property?
To calculate DSCR, divide the property’s gross monthly rent by the monthly debt obligation (loan principal + interest + taxes + insurance + HOA).
Example: $2,000 rent / $1,600 debt = DSCR of 1.25
If you’re unsure, Alto Capital’s team can help you run the numbers and explore whether a DSCR loan is right for your investment.
Apply now
Get the financial backing your real estate investment needs.