DSCR Loans for Investors With Complex Income — How They Work & Common Questions (Brok
Hey BP community — licensed non-QM mortgage broker here (NMLS# 1987012). I've been funding investor deals for years and wanted to share some info on DSCR loans since I see a lot of questions about qualifying without traditional income docs.
DSCR loans qualify based on the property's rental income vs. the mortgage payment — not your W-2 or tax returns. If the rent covers the payment, you generally qualify.
Common questions I get:
1. What DSCR ratio do I need? Most lenders look for 1.0 minimum, some prefer 1.25+
2. Can I use short-term rental income? Yes — many lenders allow Airbnb/VRBO market rents
3. What property types qualify? 1-4 units, multi-family, mixed-use, STRs
4. Do I need a down payment? Typically 20-25% for investment properties
5. How fast can these close? 2-3 weeks on average with a responsive borrower
Also happy to answer questions on Fix & Flip (no income docs, up to 90% LTC), Bridge loans, or New Construction financing if anyone has deals they're working through.
Drop your questions below — happy to help.
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#1 Private Lending & Conventional Mortgage Advice Contributor
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Yes - most likely, the main way that tenancy would be tricky is if they are "rent by the room" or entirely done through a NGO/non-profit, but if these are individual leases to units and just subsidized should be OK
- Robin Simon
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