What is the maximum LTV on a DSCR loan?

Up to 80% for purchases and rate-and-term refinances, and up to 75% for cash-out refinances. The maximum depends on credit, location and the property's DSCR.

Do DSCR loans require tax returns or W-2s?

No. Qualification is based on the property's rental cash flow and your credit, not pay stubs, tax returns or personal income.

Do you lend on short-term rentals?

Yes, short-term rentals are eligible on our DSCR program.

Can I finance a property with more than four units?

Yes. The 30-year DSCR program goes up to 10 residential units.

Do you finance commercial properties with DSCR loans?

No. The DSCR program is for non-owner-occupied residential investment properties.

What prepayment options are available?

You can choose from several structures, including zero prepayment penalty, a 3-2-1 declining schedule, or 5-4-3-2-1 for the most competitive rate.

How fast can I get a DSCR quote?

Most investors receive a quote within 24 hours of sending the property details.

DSCR Loan Program

DSCR Loans for Investment Property

Qualify on what the property earns, not on your pay stubs. Our 30-year fixed DSCR loan uses rental cash flow to approve purchases, rate-and-term refinances and cash-out refinances, with no tax returns required.

Find Out If You Prequalify Call 1-800-674-3804

Single-family rental home financed with a 30-year DSCR loan

Program snapshot

Max LTV on purchase: 80%; Max LTV on purchase
Fixed rate, no call: 30-YR; Fixed rate, no call
FICO score: 680+; FICO score
Min. property value: $100K; Min. property value

No Tax ReturnsNo W-2s, no DTI

30-Year FixedNo call

What Is a DSCR Loan?

A debt service coverage ratio (DSCR) loan is approved on the cash flow of the rental itself. We compare the property's rental income with its monthly debt payment. If the rent covers the payment, the property can qualify, regardless of what your personal tax return says.

That makes DSCR financing the natural long-term home for investors who are self-employed, own several properties, or simply do not want to document personal income for every purchase. It is also the most common exit for hard money loans once a renovation is finished.

Well-kept rental property with a porch and lawn

DSCR Calculator

Does the Rent Cover the Payment?

Monthly rent$2,400

Monthly payment (PITIA)$1,850

1.30

Rent covers the payment

Illustrative only. DSCR = monthly rent ÷ monthly principal, interest, taxes, insurance and association dues (PITIA). Qualification, rate and leverage depend on the full loan review.

DSCR Program Highlights

Built for buy-and-hold investors who want predictable, long-term debt.

Up to 80% LTV

80% on purchases and rate-and-term refinances, and up to 75% on cash-out refinances.

680+ FICO

Minimum score of 680, with exceptions considered down to 660. Your score helps set your rate.

Single-family to 10 units

Single-family and 2–10 unit residential rentals, including short-term rentals.

LLCs and individuals

Close in your own name or your entity's, with cash-flow based approval and no DTI.

Flexible prepayment

Declining prepayment structures such as 3-2-1 or 5-4-3-2-1, with zero-penalty options available.

15-year option

Prefer to pay down faster? Ask about our 15-year term with 15-year amortization.

Step by Step

Documents for a DSCR Loan

One-page application

A short application covering you, the property and the loan you want.

Lease and insurance

An executed lease showing rental income, plus proof of property insurance.

Settlement statement

The purchase settlement statement for the property being financed.

ID, bank statements and entity docs

Valid ID, two months of bank statements, and entity documents with a W-9 if borrowing through an LLC.

Compare

DSCR Loan vs. Conventional Mortgage

Conventional loans can carry lower rates for those who qualify, but they are hard to scale.

Feature	HWC DSCR loan	Conventional loan
Qualifies on	Property cash flow and credit	Personal income and DTI
Paperwork	Low-doc: no tax returns or pay stubs	Full income documentation
Borrower	LLCs and individuals	Usually individuals only
Scaling	From one rental to a portfolio	Agency limits on financed properties

Qualifies on

HWC DSCR loan: Property cash flow and credit

Conventional loan: Personal income and DTI

Paperwork

HWC DSCR loan: Low-doc: no tax returns or pay stubs

Conventional loan: Full income documentation

Borrower

HWC DSCR loan: LLCs and individuals

Conventional loan: Usually individuals only

Scaling

HWC DSCR loan: From one rental to a portfolio

Conventional loan: Agency limits on financed properties

FAQ

Frequently Asked Questions

Still have a question?

Talk to our team about your property and timeline.

1-800-674-3804

The minimum FICO score is 680, with exceptions considered as low as 660. Your credit score helps determine the rate you are quoted.

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Fix & Flip Financing

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Talk With HWC

Have a property under contract or a project you are evaluating? Tell us where things stand and what financing questions you need to resolve.

Find Out If You Prequalify Call 1-800-674-3804