Scale Your Real Estate Portfolio with DSCR Loans
A Debt Service Coverage Ratio (**DSCR**) loan is a premier mortgage program designed specifically for **real estate investors**. If you are purchasing or refinancing rental properties in Tucson, Phoenix, or across Arizona, a DSCR loan allows you to qualify based solely on whether the property's rental income covers its housing expenses—completely bypassing tax returns, W2s, and personal income verification.
No Personal Income Check
No tax returns, W2s, pay stubs, or employment history are reviewed or required.
Scale Rapidly
Since debt is tied to properties rather than personal income limits, you can close multiple loans concurrently.
Faster Closing Timelines
Fewer document requirements translate to a much faster and streamlined underwriting process.
Short-Term Rentals Eligible
Can qualify using projected Airbnb/VRBO revenues or standard long-term market rent estimates.
Who Qualifies for a DSCR Loan in Arizona?
Unlike standard conventional programs, qualifying for a DSCR loan is focused primarily on the rental property's income potential and your credit history:
- Minimum credit score of 620 (higher credit yields lower interest rates and down payments).
- Minimum down payment of 20% to 25% for purchases.
- The property's estimated market rent must be validated by an appraisal form (Form 1007).
Tucson DSCR Loan Guidelines
| Minimum Credit Score | 620 |
| Minimum Down Payment | 20% to 25% |
| DSCR Calculation | DSCR = Gross Monthly Rent / Monthly Housing Expenses (PITI + HOA). Ideal ratio is 1.0 or higher, but <1.0 is acceptable. |
| Borrower Entity | Can close in your personal name or under an LLC / Corporate entity |
DSCR Loans Pros and Cons
Advantages
- No personal income, W2, tax returns, or employment checks.
- Allows you to scale your property portfolio quickly.
- Provides the ability to close under an LLC for asset protection.
- Simpler and faster processing than conventional loans.
Disadvantages
- Requires a higher down payment (minimum 20%) than primary home programs.
- Interest rates are slightly higher (typically 0.5% to 1.0%) than conventional rates.
- Prepayment penalties may apply depending on the loan terms selected.
- Only for investment properties; cannot be used for primary residences.
Frequently Asked Questions
Get DSCR Quote
Enter details of your target investment property below to receive a custom DSCR quote.
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