DSCR LOANS EXPLAINED
What is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan lets you qualify based on the rental income your investment property generates, not your personal income. Instead of tax returns, W-2s, or pay stubs, the focus is on one simple question: does the property's rent cover its monthly debt payments?
The ratio is calculated by dividing the property's monthly rental income by its monthly payment, including principal, interest, taxes, insurance, and any HOA dues. That makes DSCR loans a practical fit for self-employed borrowers and investors growing a portfolio across Louisiana, Mississippi, and Alabama.
Investment Advantages
No Income Verification
DSCR loans qualify you based on the property's rental income, not your tax returns, pay stubs, or W-2s.
Flexible Property Types
Finance single-family rentals, multi-unit properties, and short-term rentals across Louisiana, Mississippi, and Alabama.
Built to Scale
Close in an LLC and grow your portfolio without your personal debt-to-income ratio holding you back.
ELIGIBILITY CRITERIA
Basic Qualifiers
01 / DEBT SERVICE COVERAGE
Target DSCR Ratios
Your DSCR compares the property's monthly rental income to its monthly housing payment. A ratio of 1.0 or higher means the rent covers the payment, and stronger ratios generally open the door to better terms. Some programs may consider ratios below 1.0 with additional requirements. We qualify you on the property's cash flow, not your personal income.
02 / PROPERTY TYPES
Residential, 1–4 Units
DSCR loans are designed for non-owner-occupied investment properties, including single-family homes, condos, townhomes, and 2–4 unit multifamily properties across Louisiana, Mississippi, and Alabama. Long-term rentals and short-term rentals may both be eligible, depending on the program.