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KNB Capital · Investor Loans
DSCR Investor
Loan
Qualify based on your property’s rental income — not your personal tax returns. Designed for real estate investors who are self-employed, retired, or who show limited taxable income.
The Basics
What Is A DSCR Loan?
DSCR stands for Debt Service Coverage Ratio — the ratio of a property’s gross rental income to its monthly mortgage payment (principal, interest, taxes, insurance, and HOA). A DSCR of 1.0 means the rent exactly covers the mortgage. Most lenders want 1.0–1.25+.
No W-2s, no tax returns, no personal income calculation. The property pays for itself. DSCR loans are the go-to tool for investors scaling a rental portfolio without letting their personal income statement be the limiting factor.
Do You Qualify?
DSCR Loan Requirements
Down Payment
Typically 20–25% for a standard DSCR loan. Some programs allow 15% down for 1-unit properties with stronger DSCR (1.25+) and credit (700+).
DSCR Calculation
Gross monthly rent ÷ PITIA (principal, interest, taxes, insurance, HOA). A $3,200 rent on a $3,000 PITIA = 1.07 DSCR. We calculate this with current market rent — even before you have a tenant.
Property Types
1–4 unit residential rentals, condos, townhomes, and short-term rentals (Airbnb/VRBO eligible with some lenders using STR income). No primary residences.
What We Don’t Need
No tax returns. No employment verification. No personal income documentation. Just the property, the lease (or market rent appraisal), and your credit/assets.
Common Questions
What Investors Ask Us Most
What If My DSCR Is Below 1.0?
Some lenders allow DSCR as low as 0.75 with a larger down payment (25–30%) and higher credit. There are also ‘no-ratio’ DSCR products for strong borrowers who want maximum flexibility.
Can I Use Projected Rent Instead Of A Current Lease?
Yes. Most DSCR lenders accept a market rent appraisal (Form 1007) from the property appraiser to qualify — you don’t need an existing tenant in place at time of closing.
Are Short-Term Rental Properties Eligible?
Yes with select lenders. STR income is typically based on an AirDNA report or a 12-month average of actual STR revenue. STR programs often require slightly higher DSCR and lower LTV.
Ready To Scale Your Portfolio?
Tell us the property address and estimated rent — we’ll calculate your DSCR and show you your options.