DSCR loans qualify rental property on property cash flow — not your W-2, tax return, or employment history. If the asset’s rent covers the debt service (principal, interest, taxes, insurance, and association fees), the deal can close. That makes DSCR the permanent debt exit for BRRRR investors, self-employed sponsors, and portfolio builders scaling through LLC-held acquisitions.
Jaken Finance Group originates DSCR rental loans nationwide — 5.75%–10.5% on 30-year fixed or ARM products, with up to 85% LTV purchase, 80% LTV cash-out, and 85% LTV rate-and-term in select markets for qualified borrowers. This hub links every state program page, tools, and guides.
How DSCR underwriting works
The formula is simple: DSCR = Net Operating Income ÷ Annual PITIA
| Component | What counts |
|---|---|
| Rental income | Market rent (appraisal) or actual lease rent — whichever the program specifies |
| Vacancy | Typically 5%–10% haircut on gross rent |
| Operating expenses | Property tax, insurance, HOA, management reserve |
| PITIA | Principal + interest + taxes + insurance + association (if any) |
A property generating $1,500/mo NOI against $1,200/mo PITIA clears 1.25 DSCR — qualifying for most programs at standard leverage.
Credit-flexible underwriting with no minimum FICO on select programs. Approval is collateral-first — driven by property cash flow, LTV, reserves, and exit strategy. DSCR does not run through Fannie Mae or Freddie Mac credit score models (FICO 10T / VantageScore 4.0 do not apply).
Model every deal before you offer: DSCR calculator
DSCR loan parameters (2026)
| Parameter | Typical range |
|---|---|
| Rates | 5.75%–10.5% (30-year fixed or ARM) |
| LTV — purchase | Up to 85% in select markets |
| LTV — cash-out | Up to 80% in select markets |
| LTV — rate-and-term | Up to 85% in select markets |
| DSCR minimum | 1.0–1.25 depending on product |
| Property types | SFR rentals, 2–4 unit, select multifamily and mixed-use |
| Loan amounts | $150K–$2M+ |
| Close speed | 14 business days on complete files |
| Seasoning | Select programs allow limited or no seasoning on cash-out |
When investors use DSCR
| Scenario | Why DSCR fits |
|---|---|
| BRRRR exit | Extract equity after rehab without selling — pair with hard money on the buy-rehab leg |
| Portfolio stacking | Close in LLC; scale beyond agency loan limits |
| Self-employed sponsor | No W-2 or tax-return income verification |
| Out-of-state acquisition | Qualify on property rents in the target market |
| No-seasoning cash-out | Recycle capital faster than 12-month bank seasoning |
DSCR vs. other investor financing
| Product | Underwriting driver | Income docs | Best use |
|---|---|---|---|
| DSCR | Property cash flow | None (rent-based) | Permanent hold, BRRRR exit |
| Hard money / fix-and-flip | ARV, LTC, scope | Minimal | Acquisition + rehab |
| Agency / conventional | Personal income + credit | W-2, tax returns | Owner-occupied or low-leverage investment |
| Bridge | Equity + exit | Minimal | Short-term carry |
Deep dive: DSCR vs hard money vs conventional · How a DSCR loan works
DSCR loans by state — all 50 states
Select your state for program detail, metro hubs, and market-specific DSCR math:
Southeast
- Alabama · Florida · Georgia · Kentucky · Mississippi · North Carolina · South Carolina · Tennessee · Virginia · West Virginia
Midwest
- Illinois · Indiana · Iowa · Kansas · Michigan · Minnesota · Missouri · Nebraska · North Dakota · Ohio · South Dakota · Wisconsin
Northeast
- Connecticut · Delaware · Maine · Maryland · Massachusetts · New Hampshire · New Jersey · New York · Pennsylvania · Rhode Island · Vermont · Washington DC
South Central
West
- Alaska · Arizona · California · Colorado · Hawaii · Idaho · Montana · Nevada · New Mexico · Oregon · Utah · Washington · Wyoming
Focus markets with developed guides: Illinois · Texas · California · Florida · Georgia · North Carolina · Indiana · South Carolina
Tools and guides
- DSCR calculator — model rent, rate, taxes, insurance, and HOA before every offer
- DSCR rental playbook — free guide to ratio math, portfolio stacking, and BRRRR-to-DSCR exits
- How a DSCR loan works — the 1.0 ratio explained
- Scale rental portfolio 1 to 10 — pacing acquisitions
- Rural DSCR loans explained — non-metro underwriting
- Bonus depreciation and cost segregation — tax planning at DSCR refi
Pair DSCR with acquisition capital
The investor lifecycle runs hard money in, DSCR out:
- Acquire + rehab — hard money or fix and flip at 8.99%–13.5% IO
- Stabilize + lease — market-rate or Section 8 tenants
- Refi to DSCR — pull equity at 5.75%–10.5% fixed, qualify on rent
- Repeat — equity funds the next acquisition
One lender relationship from acquisition through permanent debt. No restarting with a new lender every BRRRR cycle.
Get pre-qualified for DSCR
Jaken underwrites the deal’s cash flow, not your pay stubs. Whether you hold one door or twenty, DSCR is how investors scale past W-2 income limits.
Pre-Qualify for DSCR · DSCR calculator · DSCR rental playbook · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. Jaken Finance Group only finances non-owner occupied investment properties.