DSCR Loans For

Real Estate Investors

Investment property financing without traditional personal-income qualification, including DSCR and select no-ratio options.

From 620 FICO

From 15% down

LLC & short-term rentals

Comparing programs across our lending partner network

30+

Lending partners

620+

FICO program options

15%+

Down payment options

80%

Max LTV for Cash-Out

Does This Sound Like Your Situation?

If any of these describe you, a DSCR program may be worth comparing.
“ I’m buying an investment property.
“ I’m purchasing through my LLC.
“ I already own several rental properties.
“ I’m buying or refinancing a long-term rental property.
“ I’m planning to use it as an Airbnb.
“ My accountant writes everything off.
“ I don’t qualify conventionally.
“ I’m a business owner without tax documents.

What Is a DSCR Loan (Debt-Service Coverage Ratio loan)?

A DSCR loan is an investment property financing option built around the property’s rental income rather than the borrower’s personal income. Instead of reviewing W-2s, tax returns or employment history, lenders look at how the monthly rent compares to the monthly housing payment.

If the rental income covers that payment, the property can often qualify on its own, even when a borrower’s personal financial profile wouldn’t fit a traditional mortgage. And when a property does not meet a traditional DSCR threshold, select no-ratio or lower-DSCR programs may still provide a financing path.

NextGen Mortgage is a mortgage broker,

not a direct lender.

We evaluate your investment scenario and compare available DSCR programs from our lending partners.

How a DSCR Loan Works

From first conversation to closing, here’s how we help you find a program that fits your investment.

Tell us about the property

Share the property you’re purchasing or refinancing, along with its expected monthly rental income.

We compare lending partners

Your scenario is checked against DSCR programs across our network of 30+ lending partners.

Review your matched options

See the programs you may qualify for, side by side: rate, LTV, DSCR requirement and terms.

Lock your program & close

Move forward with the lending partner and program that best fits your investment goals.

Why Choose NextGen Mortgage Broker

Every DSCR lender sets its own credit, leverage and cash-flow guidelines, so the same property can qualify with one lender and fall short with another. As a mortgage broker, NextGen compares your scenario across 30+ lending partners instead of a single set of guidelines, so you see more of what’s actually available before committing to a program.

Direct lender / traditional bank

  • Limited portfolio loan products
  • One institution’s guidelines
  • Stricter underwriting
  • Less flexibility for unique investor situations
  • Fewer alternatives if the scenario doesn’t fit

NextGen as a mortgage broker

  • Access to 30+ lending partners
  • Multiple DSCR programs and guidelines
  • More flexibility for investor scenarios
  • Ability to compare financing structures
  • More potential solutions for unique circumstances

Client Testimonials

Don't just take our word for it. Hear from the families we've helped

secure their dream homes.

The person guiding your DSCR financing | NextGen Mortgage

The person guiding your DSCR financing

Mike Gill Jr.
Founder & CEO

Mike Gill Jr.

Founded NextGen Mortgage in 2017 after starting his career at his family’s brokerage. Leads a team that partners with 30+ banks and lenders to secure financing options for investors.

2017Founded NextGen
30+Lending partners
(877) 411-0123 [email protected]

Who May Be a Good Fit for DSCR Financing?

DSCR financing can work for a wide range of real estate investors because qualification focuses primarily on the investment property and its income potential rather than traditional personal-income documentation.

By Investor Profile

Real Estate Investors

Investors purchasing, refinancing or accessing equity from residential investment properties.

Self-Employed Investors

Borrowers whose tax returns or reported personal income may not accurately reflect their financial position.

Experienced Portfolio Investors

Investors who already own multiple rental properties and want financing designed around investment-property cash flow.

ITIN & Non-Traditional Income Borrowers

Select programs may be available for borrowers who do not fit conventional mortgage qualification structures.

By Property Type

Long-Term Residential Rental Properties

Investors purchasing or refinancing residential properties intended for traditional long-term tenants.

Airbnb & Short-Term Rental Properties

Eligible Airbnb, VRBO and other short-term rental properties may qualify under specialized DSCR programs.

Vacation Rental Properties

Financing options may be available for eligible vacation and seasonal rental investment properties.

By Ownership Structure

LLC or Business Entity Buyers

Many programs allow eligible investment properties to close in an LLC or other approved business entity.

Want to Apply?

DSCR Financing Options at a Glance

Credit score

Programs available starting around 620 FICO

Down payment

Options starting around 15% down

LTV

Up to 80% LTV for Cash-Out Refinance

No-Ratio DSCR Options

Financing May Be Available Even When the Property Does Not Meet a Traditional DSCR Threshold

Personal Income Verification

No Traditional Personal Income Qualification With Many Programs

Tax Returns

Personal or Business Tax Returns May Not Be Required

Down Payment & Gift Funds

Select Programs May Allow Gift Funds With Reduced or No Sourcing Requirements

Fixed-Rate DSCR Second Mortgages

Access Equity Without Replacing Your Existing First Mortgage

Interest-Only Options

Interest-Only Structures May Be Available

Guidelines, pricing and terms vary by lending partner and borrower scenario. Figures reflect illustrative program ranges and are

not a guarantee of qualification.

NextGen Mortgage — No-Ratio DSCR & DSCR 2nd Mortgage Sections

What if the property doesn't meet the typical DSCR requirement?

No-ratio and lower-DSCR programs may still be available.

A property does not necessarily need to meet a traditional 1.00 or 1.25 DSCR threshold to qualify for investment property financing.

Through our lending partner network, NextGen Mortgage can evaluate select no-ratio and lower-DSCR programs for scenarios where the property's rental income does not meet standard DSCR requirements.

This can be especially useful for investors purchasing properties with below-market rents, properties transitioning to new rental strategies, or deals where the traditional DSCR calculation doesn't tell the full story.

Explore No-Ratio DSCR Options

Availability depends on credit profile, property type,
leverage, loan purpose and lending partner guidelines.

Example property DSCR

0.85

Below 1.00? You may still have options.

No-ratio & specialty options Traditional DSCR programs
Traditional program May not fit
No-ratio options Available to compare

Lower DSCR scenarios

Options may exist even when the property falls below traditional DSCR thresholds.

No-ratio programs

Select lending partners may offer programs without a standard minimum DSCR requirement.

30+ lending partners

We compare available programs instead of relying on one lender's guidelines.

Your investment property

How the loans stack up

  • 1st mortgage

    Stays in place at your current rate

    Keep

  • Fixed-rate DSCR 2nd

    Access available equity

    New

  • Remaining equity

    Stays with you

Access equity without giving up your existing mortgage rate

Fixed-rate DSCR second mortgage options.

Already have a strong interest rate on your investment property's first mortgage? Refinancing the entire balance just to access equity may not always make sense.

Select fixed-rate DSCR second mortgage programs may allow qualifying investors to access available property equity while keeping their existing first mortgage in place.

This may be useful for investors looking to:

  • Fund another investment property purchase
  • Renovate or improve existing rental properties
  • Access capital for portfolio expansion
  • Consolidate eligible obligations
  • Preserve an attractive existing first-mortgage rate
Check DSCR Second Mortgage Options

Program availability, maximum LTV, loan amounts and qualification requirements vary by lending partner.

Cash-out refinance vs. DSCR second mortgage

Traditional cash-out refinance
DSCR second mortgage
Your first mortgage
Cash-out refiReplaces existing first mortgage
DSCR 2ndExisting first mortgage stays in place
What you borrow against
Cash-out refiEntire balance gets refinanced
DSCR 2ndBorrow only against eligible additional equity
Your current rate
Cash-out refiMay change existing mortgage rate
DSCR 2ndCan preserve the existing first-mortgage rate

What Determines Your DSCR Loan Options?

Credit score

What your FICO opens up

Programs may be available starting around 620 FICO, while stronger credit may provide access to better pricing or additional options.

Down payment

How much you put in

For purchases, select programs may offer financing up to approximately 80% LTV, or as little as 15% down, while a larger down payment can improve the available financing structure.

Cash flow

What the property earns

For traditional DSCR programs, stronger property cash flow can improve the range of available options. Select no-ratio programs may also be available when the property does not meet a standard DSCR threshold.

Frequently Asked Question

Can you get a DSCR loan below 1.0?

Potentially. While many DSCR programs target a ratio around 1.00 or above, some lending partners offer programs for lower-DSCR or no-ratio investment scenarios. Eligibility, leverage, pricing and other requirements can differ significantly between programs.

Can you close a DSCR loan in an LLC?

Many DSCR lending programs allow eligible investment properties to close in an LLC or other permitted business entity. Requirements vary by lender, entity structure and borrower scenario, so NextGen compares the available guidelines before recommending a financing path.

Can you use a DSCR loan for Airbnb?

Yes, some DSCR lending programs allow eligible Airbnb, VRBO and other short-term rental properties. How rental income is calculated and which documentation is accepted varies between lending partners.

Are interest-only DSCR loans available?

Some lending partners offer interest-only payment structures for eligible DSCR borrowers. These structures may improve near-term property cash flow, although qualification, pricing and repayment terms vary by program.

What about a DSCR cash-out refinance?

Eligible investors may use a DSCR cash-out refinance to access equity in an investment property for renovations, portfolio expansion or other eligible purposes. NextGen compares available cash-out programs based on property value, DSCR, credit and lender guidelines.

Are there programs for foreign national investors?

NextGen can evaluate foreign-national investor scenarios against specialty programs available through participating lending partners. Documentation and qualification requirements vary by lender.

Let’s compare DSCR loan options for your investment.

Share a few details about your scenario and we’ll help identify which lending partner programs may fit.

MLO License Info: NMLS #1621958, NH Broker license #1621958MBRR, and MA Broker license #MB1621958, ME Broker License #1621958, FL Broker License #MBR4542, RI Broker License #20265029LB

MLO License Info: NMLS #1621958, NH Broker license #1621958MBRR, and MA Broker license #MB1621958, ME Broker License #1621958, FL Broker License #MBR4542, RI Broker License #20265029LB