Nick Hebert — Edge Home Finance

Grow your portfolio with DSCR financing.

Qualify on the property's rental income — not your personal tax returns. Built for investors who think in cash flow.

Discuss Your Deal

What is DSCR?

DSCR stands for Debt Service Coverage Ratio — the ratio of a property's rental income to its mortgage payment. Instead of proving personal income with tax returns, lenders evaluate whether the property's rent covers the debt.

A DSCR of 1.0 means rent equals the payment. Most programs look for 1.0–1.25+, depending on the lender and property type.

Who it's for

  • ✓ New investors buying their first rental
  • ✓ Seasoned investors scaling a portfolio
  • ✓ Self-employed borrowers with strong rentals
  • ✓ W-2 earners who maxed conventional limits
  • ✓ LLC and entity purchases (program-dependent)

Example scenarios

First rental property

New investor buying a single-family rental. Qualify on projected rent, not your W-2.

Portfolio expansion

Seasoned investor adding property #5 or #10. DSCR scales with your portfolio goals.

Short-term rental

Airbnb or vacation rental? Some DSCR programs accept short-term rental income projections.

Refinance to pull equity

Already own rentals? Refinance based on property cash flow to fund your next deal.

Investor loan FAQ

How do I qualify for a DSCR loan?
Qualification is based on the property's cash flow, not your personal income — no tax returns or W-2s. The lender divides gross rent by the full payment including taxes, insurance, and HOA. Most programs look for 1.0 or higher. Credit and reserves still matter.
How much do I need to put down?
Some programs go as low as 15% down with strong credit and cash flow, though 20–25% is more typical. Cash-out refinances are usually capped around 70–75% of value.
Is there a limit on how many properties I can finance?
Conventional financing caps you at ten, and most lenders stop well before that. DSCR loans generally have no such cap since each loan stands on the property itself.
How is rental income calculated?
The lender uses either the existing lease or the appraiser's market rent estimate, often the lower of the two. It's gross rent measured against the full payment, not net after expenses.
Can I close in an LLC?
Most DSCR programs allow it, which is a main reason investors choose them. You'll need entity documents and usually a personal guarantee. Tell me how you plan to hold title early.
What if the property doesn't quite cash flow?
It may still work. Some programs allow a ratio below 1.0 with more down or a higher rate, and a few skip the calculation entirely. Send me the numbers and I'll tell you straight.

Have a deal in mind?

Let's run the numbers on your next investment property.

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