What a DSCR loan is
DSCR stands for Debt Service Coverage Ratio — the property's rental income divided by its loan payment. A DSCR loan qualifies the deal on that ratio rather than on your tax returns, pay stubs, or debt-to-income. If the rent comfortably covers the payment, the property can carry the loan.
That makes DSCR and rental loans a fit for self-employed investors, anyone scaling past the limits of conventional financing, and operators who simply don't want their personal income picked apart on every deal. It's the most common form of rental financing with no personal-income verification.
Built for BRRRR and buy-and-hold
If your plan is to keep a property as a rental rather than resell it, a DSCR or rental loan is usually the right exit. It pairs naturally with the BRRRR strategy — buy, rehab, rent, refinance, repeat — where a short-term rehab loan acquires and renovates the property, and a DSCR refinance then replaces it with stable long-term financing and frees your capital for the next deal.
- Long-term, often 30-year, financing for stabilized rentals
- Qualifies on the property's cash flow, not your personal income
- The standard refinance leg of a BRRRR project
- Works for single-family rentals and small multifamily
Why place a DSCR loan through a broker
DSCR pricing and minimum-ratio requirements vary meaningfully from lender to lender. Because Clear Path is a broker, we shop your scenario across multiple rental-loan partners and bring back the structure that maximizes leverage and cash flow for your specific property — rather than tying you to one company's overlays. We don't fund loans ourselves; we place them with licensed lender partners and stay in the deal through closing.
Submit the property and the rents, and we'll tell you in 24 hours whether it fits and what the path looks like.
Frequently Asked Questions
Generally no. A DSCR loan qualifies on the property's rental income relative to its payment rather than on your personal income, so tax returns and pay stubs usually aren't the deciding factor. Exact documentation depends on the lender partner.
Many rental-loan partners look for a ratio at or above 1.0–1.25, meaning the rent covers the payment with some cushion, and some will go lower with stronger reserves or a larger down payment. Requirements vary by partner; Clear Path is a broker and does not set the ratio.
Yes — that's one of the most common uses. After the rehab is done and the property is rented, a DSCR refinance replaces the short-term rehab loan with long-term financing and can return much of your invested capital for the next project.
A fix and flip loan is short-term financing to buy, renovate, and resell. A DSCR or rental loan is longer-term financing to hold a property as a rental, qualified on its cash flow. Flip to sell, DSCR to keep.
Size your deal, then send it over.
Run the numbers in about ten seconds — max loan, cash-to-close, LTV and LTC, no email required — then submit the scenario and get a real answer in 24 hours.