A DSCR loan qualifies an Irvine rental on its debt service coverage ratio — rent ÷ full payment (PITIA) — instead of your income. Aim for DSCR ≥ 1.0, credit ~640–660+, 20–25% down, no tax returns. Great for scaling a portfolio. Full program details.
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How a DSCR loan works
Instead of your pay stubs or tax returns, the lender looks at whether the property pays for itself. If the rent covers the mortgage payment, the loan works — regardless of your personal income. That's what makes DSCR the go-to tool for serious investors: your personal DTI never enters the picture, so you can keep buying.
The ratio, simply
| DSCR | Meaning |
|---|---|
| 1.25 | Rent exceeds payment by 25% — strong |
| 1.00 | Rent exactly covers the payment |
| Below 1.00 | Shortfall — some lenders allow with adjustments |
DSCR = monthly rent ÷ PITIA (principal, interest, taxes, insurance, HOA). Illustrative for 2026.
Typical terms (2026)
| Feature | Typical |
|---|---|
| Qualifying basis | Property cash flow — no personal income docs |
| Min DSCR | Often ≥ 1.0 (some lower w/ adjustments) |
| Credit score | ~640–660+ |
| Down payment | ~20–25% |
| Property | Long-term or (often) short-term rentals |
| Rate | Typically above conventional |
Terms vary by lender, ratio & property; illustrative for 2026, not an offer.
DSCR loan FAQs
What is it?
A rental loan qualifying on property cash flow, not personal income.
How's DSCR calculated?
Monthly rent ÷ PITIA. 1.0 = rent covers payment.
Typical terms?
~640–660+ credit, 20–25% down, no income docs. Illustrative.
Condos & HOA?
Yes — HOA dues count in the payment; lenders vary on condo rules.
Why useful here?
Scale a portfolio without personal income limits in a strong rental market.
Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766), serving Irvine from its Newport Beach office.