No Income Docs

DSCR Rental Loans

Scale your rental portfolio without tax returns or W-2s.

Loan Highlights

Loan Amount$100,000 – $3,000,000

Max LTVUp to 80% LTV

Interest RateStarting at 7.99% (30-yr fixed or ARM)

Term30-yr fixed, 5/1 ARM, 7/1 ARM

QualificationDSCR ≥ 1.0 (or 0.75 with rate adj.)

Close Time7 – 14 business days

PropertySFR, 2–4 unit, condo, townhome (non-OO)

What is a DSCR Loan?

A DSCR (Debt Service Coverage Ratio) loan is a type of investment property mortgage where lenders qualify the borrower based on the property’s rental income rather than the investor’s personal income. Unlike conventional loans that require W-2s, tax returns, pay stubs, and employment verification, DSCR loans ask a single question: does the property generate enough rent to cover its monthly payment?

This makes DSCR loans ideal for self-employed investors, high-net-worth individuals who write off most of their income, foreign nationals, and anyone scaling a rental portfolio beyond the 10-property limit imposed by Fannie Mae and Freddie Mac. With NextRes DSCR loans, you qualify on the property — not yourself.

Our DSCR product offers 30-year fixed rates, 5/1 and 7/1 ARM options, and loans from $100,000 to $3,000,000 per property. We can accommodate a wide range of DSCRs — from the standard 1.0+ down to 0.75 with a rate adjustment — giving more investors access to long-term rental financing than any conventional program allows.

The DSCR Formula

DSCR = Annual Rent Income ÷ Annual Debt Service (PITI)

Example: $2,400/mo rent ÷ $1,800/mo PITI = DSCR of 1.33 — qualifies easily.
A DSCR of 1.0 means the property breaks even. Below 1.0 requires a rate adjustment.

Why Investors Love DSCR Loans

No tax returns or W-2s

Self-employed investors, those with complex income, or anyone who maxes deductions can qualify without showing personal income. The property’s rent roll is all we need.

Scale your portfolio without limits

Conventional loans cap you at 10 properties. With DSCR, there’s no artificial cap — we’ve helped investors finance portfolios of 50+ units with no seasoning requirement.

Keep your financials private

Your personal tax returns, business income, and financial statements stay private. We only need the property’s lease and a credit pull.

Qualify on what the property earns

If the market rent covers the debt service, you qualify. It’s that simple. We use market rent surveys or actual signed leases — whichever is higher.

Minimum Requirements

Factor	NextRes Requirement
DSCR	≥ 1.0 standard; ≥ 0.75 with rate adjustment
Min FICO	620 (better rates at 680+)
Max LTV	80% (75% for cash-out refinance)
Property	Non-owner-occupied, 1–4 unit residential
Seasoning	0 months (purchase day-one)
Prepay	3-2-1, 5-4-3-2-1, or step-free (rate adjusted)
Title Vesting	Individual, LLC, trust, or corporation

DSCR Loan vs. Conventional Loan

Feature	NextRes DSCR	Conventional Loan
Income docs required	None	W-2s, tax returns, paystubs
Qualification basis	Property rent income	Borrower personal income
Max financed properties	Unlimited	10 (Fannie/Freddie limit)
Entity vesting (LLC)	Yes — accepted	Usually not allowed
Self-employed friendly	Yes	Complex; 2-yr self-employment history needed
Time to close	7 – 14 days	30 – 60 days
Loan portfolio scaling	Easy — each deal stands alone	Debt-to-income impacted by every new loan

DSCR Loan FAQs

What is DSCR and how is it calculated?

DSCR stands for Debt Service Coverage Ratio. It measures a property's ability to cover its debt payments from rental income. The formula is: DSCR = Annual Gross Rent Income ÷ Annual Debt Service (PITI — principal, interest, taxes, and insurance). A DSCR of 1.0 means the property breaks even. A DSCR of 1.25 means the property generates 25% more income than its debt payment. Most lenders, including NextRes, prefer a DSCR of 1.0 or higher, though we can accommodate as low as 0.75 with a rate adjustment.

What rent figure do you use — actual lease or market rent?

We use the higher of (1) the actual signed lease rent if the property is tenant-occupied, or (2) the market rent as determined by a third-party appraisal or rent schedule. This means even if you’re acquiring a vacant property, we can use market rent to qualify — which is a huge advantage over conventional loans.

Can I use a DSCR loan if I already own multiple properties?

Absolutely. In fact, DSCR loans are specifically designed for portfolio investors. There’s no limit on the number of financed properties under a DSCR loan — unlike conventional loans which cap at 10. Many of our borrowers have 20–50 or more properties financed through NextRes DSCR programs.

What is the minimum loan amount for a DSCR loan?

Our minimum loan amount for DSCR rental loans is $100,000. There is no hard maximum — we regularly close loans in the $2M–$3M range for individual properties, and we can structure portfolio DSCR loans for investors who want to finance multiple properties under a single loan.

Do DSCR loans require the property to be currently rented?

No. You can use a DSCR loan to purchase a vacant property or refinance one that is between tenants. In those cases, we use market rent data from the appraisal or a rental market survey rather than an actual lease. This lets you purchase, renovate (if needed), and finance long-term before you even have a tenant in place.

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“NextRes closed my fix-and-flip in 4 business days when my bank couldn't even return a call. We've done 11 deals with them since. They're the first call I make.”

★★★★★

“DSCR loans through NextRes allowed me to scale from 3 to 22 units in 18 months. No W-2 verification, no hassle. They look at what the property earns, period.”

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“Their construction loan process is the most straightforward in the industry. Draw requests processed within 48 hours. I won't build a spec home without them.”

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“My Airbnb portfolio went from 2 to 9 properties in one year thanks to NextRes DSCR loans. No income docs, no drama — just capital when I needed it.”

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“I needed bridge financing in 6 days to close a deal before I lost it. NextRes delivered. That property netted me $190K. They literally saved the deal.”

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“Refinanced a 12-unit with NextRes in under three weeks. The rate was better than anything my broker found at a bank, and the process was completely painless.”

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