How DSCR rental loans work
A DSCR loan lets real estate investors qualify on a rental property’s cash flow instead of personal income. Mortava compares the property’s monthly rent to its monthly payment — no tax returns, W-2s, or debt-to-income ratio — so you can scale a portfolio without the paperwork of a conventional mortgage. It’s the core financing tool behind buy-and-hold rentals, the BRRRR strategy, and short-term-rental (Airbnb) investing.
Qualify on rent, not income
DSCR = monthly rent divided by the payment (PITIA). A ratio of 1.0 means the rent covers the payment; above 1.0 is positive cash flow. Mortava's minimum DSCR is just 0.50 on standard rental programs — no tax returns, W-2s, or DTI — ideal for self-employed and full-time investors.
Leverage & terms
Up to 85% LTV on purchase and rate-and-term, up to 80% CLTV cash-out, loans from $100K to $3.5M, minimum 620 FICO. Choose 30- or 40-year fixed or interest-only to match your cash-flow strategy.
Built for how investors buy
Vest in an LLC or corporation, finance short-term-rental income on many programs, and use purchase, rate-and-term, or cash-out refinances. Foreign nationals considered. Most loans close in 21–30 days.
DSCR loan FAQ
What is a DSCR loan?
A DSCR (Debt-Service Coverage Ratio) loan is a business-purpose mortgage for rental property that qualifies on the property’s cash flow instead of your personal income. Lenders compare the monthly rent to the monthly loan payment — no tax returns, W-2s, or debt-to-income ratio required.
How is DSCR calculated?
DSCR = gross monthly rent divided by the property’s monthly payment (principal, interest, taxes, insurance, and any HOA — PITIA). A DSCR of 1.0 means the rent exactly covers the payment; above 1.0 is positive cash flow. Many Mortava programs also finance lower-DSCR and short-term-rental (Airbnb) income.
What credit score and DSCR do I need?
Minimum FICO is 620, with the best pricing at 720+. Standard DSCR rental (1–4 unit) programs require a minimum DSCR of just 0.50 — one of the most flexible floors in the market — with pricing and leverage improving as DSCR rises; a specialist confirms your exact eligibility on the indicative term sheet.
Do I need tax returns or income documentation?
No. DSCR loans do not use personal tax returns, W-2s, pay stubs, or DTI. Qualification is based on the property’s rent and your credit — ideal for self-employed investors and anyone scaling a portfolio.
Can I close in an LLC, and do you lend to foreign nationals?
Yes. You can vest title in an LLC or corporation, which most investors prefer for liability and portfolio management. Foreign-national borrowers are considered on a case-by-case basis.
What are the maximum LTV and cash-out limits?
Up to 85% LTV on purchase and rate-and-term refinances, and up to 80% CLTV on cash-out, subject to credit, DSCR, and property type. Loan amounts run from $100K to $3.5M with 30- and 40-year fixed and interest-only options.
How fast can a DSCR loan close?
Most DSCR loans close in about 21–30 days. You receive indicative terms quickly after a soft-inquiry pre-qualification — which does not affect your credit — and a specialist follows up to finalize.
One lender, every stage of the deal
DSCR rental loans by state
Mortava funds DSCR rental loans for investors nationwide. Explore program details, top metros, and a live term sheet for your state.