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DSCR Investor Loans

Rental property financing for investors in 35 states.

A DSCR investor loan is a business purpose mortgage on a rental that qualifies on the rent the property brings in, not on your personal income. Pillar Mortgage Group (NMLS 2700076) is a mortgage broker that matches investors with multiple wholesale DSCR lenders, with ratios as low as 0.50 and single loans up to $5 million.

Get my scenario reviewedCheck your DSCR

Program terms checked November 1, 2026. Not a commitment to lend.

Where we lend

DSCR loans in 35 states

Tap a gold state to open its DSCR guide, or pick it from the list. Investing in a gray state? Tap it and send us the scenario.

DSCR loans in AlabamaDSCR loans in AlaskaDSCR loans in ArizonaDSCR loans in ArkansasCalifornia: ask us about a DSCR scenarioDSCR loans in ColoradoDSCR loans in ConnecticutDSCR loans in DelawareDistrict of Columbia: ask us about a DSCR scenarioFlorida: ask us about a DSCR scenarioDSCR loans in GeorgiaDSCR loans in HawaiiIdaho: ask us about a DSCR scenarioIllinois: ask us about a DSCR scenarioDSCR loans in IndianaDSCR loans in IowaDSCR loans in KansasDSCR loans in KentuckyDSCR loans in LouisianaDSCR loans in MaineDSCR loans in MarylandDSCR loans in MassachusettsDSCR loans in MichiganMinnesota: ask us about a DSCR scenarioDSCR loans in MississippiDSCR loans in MissouriDSCR loans in MontanaNebraska: ask us about a DSCR scenarioNevada: ask us about a DSCR scenarioDSCR loans in New HampshireNew Jersey: ask us about a DSCR scenarioDSCR loans in New MexicoNew York: ask us about a DSCR scenarioDSCR loans in North CarolinaNorth Dakota: ask us about a DSCR scenarioDSCR loans in OhioDSCR loans in OklahomaOregon: ask us about a DSCR scenarioDSCR loans in PennsylvaniaDSCR loans in Rhode IslandDSCR loans in South CarolinaSouth Dakota: ask us about a DSCR scenarioDSCR loans in TennesseeDSCR loans in TexasUtah: ask us about a DSCR scenarioVermont: ask us about a DSCR scenarioVirginia: ask us about a DSCR scenarioDSCR loans in WashingtonDSCR loans in West VirginiaDSCR loans in WisconsinDSCR loans in Wyoming

StateHover or tap a stateGold opens the guide. Gray: ask us.

We lend DSCR hereAsk us

Small states, tap to open:

CTDEMDMANHRIHI

See all 35 state guides as a list

Map geometry: US Census Bureau cartographic boundary files.

The short answer

What is a DSCR investor loan?

DSCR stands for debt service coverage ratio. A DSCR loan sizes a rental property mortgage on one number: the monthly rent divided by the full monthly payment. If that ratio clears the lender's minimum, the loan can be approved without tax returns, W2s, pay stubs or a job history. It is built for investors, so the property can never be your primary home, and the loan can close in your LLC.

DSCR investor loans in brief

  • The property qualifies on its own rent. Your personal income is not used.
  • Pillar Mortgage Group can place ratios as low as 0.50 on eligible programs.
  • Plan on a credit score of about 660 or higher and 20 to 25% down.
  • No reserves are required on loans under $1 million at under 75% LTV.
  • We lend DSCR in 35 states, and investors anywhere else can ask for a scenario review.
  • Does your rental pencil out?Plug in the rent and payment and see your ratio.Check your DSCR

PMG DSCR program terms as of November 2026. Final terms depend on the lender, the property and the borrower. Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

The program

PMG DSCR program terms

The same DSCR program applies whether your rental sits in a big metro or a small town. Here is what it looks like on paper.

DSCR floor
0.50Eligible programs go as low as 0.50. Stronger ratios tend to earn better pricing.
Credit score
660+A minimum score of about 660 covers most DSCR programs we place.
Down payment
20 to 25%Most purchases land between 20 and 25% down, set by credit, ratio and loan size.
Loan size
Up to $5MSingle DSCR loans up to $5 million.
Reserves
None under $1MNone required when the loan is under $1 million and the LTV is under 75%.
Title
Name or LLCClose in your own name or vest the property in your LLC.
Income paperwork
Not requiredNo tax returns, W2s, pay stubs or employment verification.
Properties
1 to 4 unitsSingle family homes, condos, 2 to 4 unit buildings and many short term rentals.
Lenders
MultipleEach deal is priced with several wholesale DSCR lenders.
Coverage
35 statesWe lend DSCR in 35 states. See the map. Buying somewhere else? Send the scenario and we will review it.

PMG DSCR program terms as of November 2026. Final terms depend on the lender, the property and the borrower. Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

The formula

How lenders calculate DSCR

Underwriters divide the monthly rent by PITIA, the complete monthly housing cost: principal and interest, property taxes, homeowners insurance and any HOA or association dues. Rent comes from the lease, the appraiser's market rent opinion, or both.

DSCR = Monthly rent ÷ Monthly PITIA

  • Principal and interest, from your quote$1,450
  • Property taxes, $3,120 a year$260
  • Insurance, $1,320 a year$110
  • HOA dues$0
  • Monthly PITIA$1,820
  • Monthly market rent$2,200

Hypothetical figures for illustration. Your principal and interest come from your own quote.

Your ratio

$2,200 in rent divided by $1,820 in PITIA gives a DSCR of 1.21. The rent pays the whole housing cost and leaves $380 a month of cushion on paper.

Swap in a $1,500 rent and the ratio drops to 0.82. That misses 1.00, yet it still sits inside programs that go down to 0.50.

1.21DSCR in this example
  • 1.00 or higherThe rent covers the full payment. Most lenders are comfortable here, and pricing usually improves as the ratio climbs.
  • 0.50 to 0.99The rent covers part of the payment and you carry the rest. Fewer lenders go here, which is why matching the right one matters.
  • Under 0.50Below the program floor. A bigger down payment, an interest only option or a different price can move the ratio back into range.
The 0.50 floor

Why a lower DSCR floor matters

A typical DSCR program wants rent to match or beat the payment. Pillar Mortgage Group has programs that accept a ratio as low as 0.50, so the rent only has to cover half of PITIA on eligible files.

That opens deals that cash flow later rather than on day one: properties bought for appreciation, homes in pricey markets where rents lag values, and rentals you plan to improve and re rent.

Same $1,820 monthly payment as the example above, three different rents:

  • $2,200 rent1.21Covers the payment$2,200 divided by $1,820 gives a DSCR of 1.21.
  • $1,500 rent0.82Short of 1.00, still placeable$1,500 divided by $1,820 gives a DSCR of 0.82.
  • $950 rent0.52Close to the 0.50 floor$950 divided by $1,820 gives a DSCR of 0.52.

At a 0.50 floor, a $1,820 payment needs at least $910 a month in rent. Want better pricing? Putting more money down or choosing a lower price shrinks the payment and lifts the ratio.

Illustration only, not a quote. Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

Calculator

Run the ratio on your own deal

Enter the rent, the price, your down payment and the rate from your own quote, then add taxes, insurance and any HOA dues. Everything you type stays in your browser.

DSCR Calculator

See how a rental's income stacks up against its full monthly payment. Your numbers stay in your browser.

Income
Loan
Expenses
Leave blank if there is no HOA.

Your DSCR results

Enter rent, price and your quoted rate to see your DSCR.

Formula used

Loan amount (L) = Price × (100 minus Down %) ÷ 100

P&I (30 year fixed) = L × r × (1 + r)^360 ÷ ((1 + r)^360 minus 1), where r = annual rate ÷ 100 ÷ 12

P&I (40 year interest only) = L × r

PITIA = P&I + Tax ÷ 12 + Insurance ÷ 12 + HOA

DSCR = Monthly rent ÷ PITIA

Rent needed for a target DSCR = Target × PITIA

Send us this scenario

Estimates only. Not a loan offer. Rates and terms vary by lender, property and borrower. Company NMLS #2700076. Placeholder values are examples, not a quote.

Scenario review

Have a rental in mind? Send us the numbers.

Tell us where the property is, what it costs and what it should rent for. We work out the ratio, match it with lenders and come back with a straight answer before you commit.

Buying outside our 35 states? Send it anyway and we will review the scenario.

Get My Scenario Reviewed

No commitment  ·  Under 2 minutes

Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

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Scenario received.

Our team will reach out shortly to go over your numbers.

Where PMG is different

Nine guidelines that open more deals

Plenty of DSCR programs carry rules that knock out new investors, recent buyers and buyers from abroad. Compare the usual requirement with what Pillar Mortgage Group can place.

Lowest DSCR

0.50

On eligible programs the rent covers half of the payment. Single loans up to $5 million.

01First time investors
Typical DSCR programWant a home you own or a rental track record.
PMGAllowed. No primary residence and no VOR required.
02Cash out seasoning
Typical DSCR programWait a set time on title before any cash out.
PMGNo ownership seasoning on cash out.
03Reserves
Typical DSCR programSeveral months of payments set aside.
PMGNone required under a $1 million loan amount and under 75% LTV.
04Asset sourcing
Typical DSCR programExplain large deposits and season the funds.
PMGNo asset sourcing or seasoning, including large deposits.
05Gift funds
Typical DSCR programGifts capped, with some of your own money required.
PMG100% gift funds allowed.
06ADUs
Typical DSCR programOne ADU at most, or none counted.
PMGMultiple ADUs allowed.
07Foreign nationals
Typical DSCR programUS residency or citizenship required.
PMGAllowed: 70% LTV purchase or rate and term, 60% cash out.
08DSCR floor
Typical DSCR programRent must cover the full payment (1.00).
PMGAs low as 0.50.
09Interest only
Typical DSCR programHard to find, or priced as an exception.
PMGAvailable: 70% LTV purchase or rate and term, 65% cash out.

Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.

See if your deal fitsBook a free call
Short term rentals

DSCR loans for short term rentals

Vacation homes and nightly rentals can qualify on DSCR too. What changes is how the income gets proven. A long term rental leans on a lease or the appraiser's market rent. A short term rental may lean on its booking history, a market report built for short stays, or both.

Lenders also tend to trim gross short term income for vacancy, cleaning and platform costs before they divide by the payment. We find out which method each lender uses up front, so the ratio you plan around is the ratio underwriting sees.

Before you buy a short term rental, check:

  • Local permit, registration and lodging tax rules where the property sits.
  • HOA or condo rules that limit stays under a set number of nights.
  • How the lender documents income: booking history, a market report or both.
  • Whether the appraisal will include a short term rent estimate.
  • Insurance written for paying guests, not only a standard landlord policy.
Who it fits

Built for rental investors

If the property makes a stronger case than your paperwork, a DSCR loan is usually the shorter path to closing.

First time investors

Renting the home you live in? You can still buy a first rental, with no primary residence and no rental history check.

Self employed owners

Write offs shrink taxable income. A DSCR file never asks for the return, so your deductions stay where they are.

Portfolio builders

Each door qualifies on its own rent and can close in your LLC, so the next purchase does not hinge on your debt ratio.

Out of state buyers

Live in one state and buy in another. We lend DSCR in 35 states, and investors anywhere can send a scenario.

Foreign nationals

Buyers without US residency can qualify, up to 70% LTV on a purchase or rate and term refinance and 60% on cash out.

Short term hosts

Nightly and vacation rentals can qualify, with income counted from booking history or a short stay market report.

Equity pullers

Bought recently and want cash back out for the next deal? There is no ownership seasoning on cash out.

Gift funded buyers

Family helping with the purchase? Gift funds can cover 100% of what you bring, with no asset seasoning.

The broker advantage

One deal, many lenders

A bank can only offer its own DSCR program and its own rules. As a broker, Pillar Mortgage Group puts your deal in front of multiple wholesale DSCR lenders and keeps the one that fits. Here is what changes from one lender to the next:

  • How low the ratio goesA 0.50 floor is not standard, and pricing shifts at each step up.
  • Cash after closingReserve rules run from none at all to months of payments.
  • Entity reviewHow your LLC, its members and its documents get checked.
  • Prepayment termsWhat it costs if you sell or refinance early.
  • Short term incomeWhich documents count and how much of the income gets trimmed.
  • Total costEvery fee on a Loan Estimate, compared side by side before you pick.
How it works

From scenario to closing

  1. Share the scenario. Location, price or value, expected rent and how you want to hold title.
  2. Get the real ratio. We calculate DSCR with actual taxes, insurance and dues, not guesses.
  3. Compare lenders. We price the deal with several wholesale DSCR lenders and walk you through the trade offs.
  4. Set the structure. Down payment, fixed or interest only, prepayment terms and vesting.
  5. Close with clear updates. Appraisal, title and closing, with a status update at every step.
  6. Ready when you are.Most scenarios take under 2 minutes to send.Send your scenario
All 35 state guides

Find the guide for your state

Each state guide covers local rents, closing customs, landlord rules and taxes that move the ratio. Arizona, our home state, has its own DSCR page.

FAQ

DSCR investor loan questions

Answers to what investors in every state ask before they send a deal. Have a different question? Ask a person.

Book a free call
What is a DSCR investor loan?
It is a business purpose mortgage for a rental property that qualifies on the rent the property earns instead of your personal income. The lender compares monthly rent with the full monthly payment, so tax returns, W2s and pay stubs are not part of the file.
How do lenders calculate the debt service coverage ratio?
They divide the monthly rent by PITIA: principal, interest, property taxes, insurance and any HOA dues. A rent of $2,200 against a $1,820 payment gives a ratio of 1.21. Rent comes from the lease, the appraiser's market rent opinion, or both.
What is the lowest DSCR Pillar Mortgage Group can accept?
We have programs that accept a ratio as low as 0.50 on eligible files, which means the rent covers half of the payment and you cover the rest. Higher ratios usually price better. Guidelines summarized; subject to program terms, property and borrower eligibility. Not a commitment to lend.
What credit score and down payment does a DSCR investor loan need?
Plan on a credit score of about 660 or higher and 20 to 25 percent down. Stronger credit and a higher ratio push you toward the lower end of that down payment range.
How much can I borrow, and do I need reserves?
Single DSCR loans go up to $5 million. No reserves are required when the loan is under $1 million and the loan to value is under 75 percent.
Can I buy my first investment property with a DSCR loan while I rent my home?
Yes. First time investors are allowed with no primary residence and no verification of rent. Gift funds can cover 100 percent of what you bring, and there is no asset sourcing or seasoning.
Can I take cash out of a rental I just bought?
Yes. There is no ownership seasoning on cash out, so you do not have to wait a set period after buying before you refinance and pull equity.
Can the loan close in my LLC?
Yes. DSCR investor loans can close in your own name or in an LLC, which is how many investors keep a growing portfolio organized.
Does short term rental income count toward the ratio?
Often, yes. Lenders may use booking history, a short stay market report or both, and many reduce gross income before dividing by the payment. We confirm the method before you commit.
Can foreign nationals qualify for a DSCR loan?
Yes. Foreign nationals can qualify up to 70 percent loan to value on a purchase or rate and term refinance, and up to 60 percent on a cash out refinance.
Is an interest only DSCR loan available?
Yes. Interest only options go up to 70 percent loan to value on a purchase or rate and term refinance and up to 65 percent on a cash out refinance. Paying interest only lowers the monthly payment, which raises the ratio.
Which states does Pillar Mortgage Group lend DSCR in, and what if mine is not listed?
We lend DSCR in 35 states: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Hawaii, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, New Hampshire, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Washington, West Virginia, Wisconsin and Wyoming. Each has its own guide on our site. If your property is somewhere else, reach out anyway and we will review the scenario.
Rental investors

Let the rent make the case.

Send the property, the price and the rent. We run the ratio, compare lenders and lay out the terms before you commit.

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Run My DSCR Scenario

No commitment  ·  Under 2 minutes

Your information is never sold or shared. By submitting you authorize Pillar Mortgage Group LLC to contact you by phone, text, or email. Equal Housing Lender.

✓

Scenario received.

Our team will reach out shortly to go over your numbers.

Pillar Mortgage Group, LLC is an Equal Housing Lender, doing business in accordance with the Fair Housing Act and Equal Credit Opportunity Act. Not a commitment to lend.
Company NMLS# 2700076  |  Arizona License MB-2009671  |  View NMLS Consumer Access