The encyclopedia of DSCR lending
Financing a rental on the rent it earns.
DSCRLoans.loan explains debt-service-coverage-ratio lending the way a good reference work should: precisely, neutrally and with the trade-offs in view. When you are ready, our licensed brokers shop the scenario across wholesale lenders.
Why this reference exists
Reference first
Every term in a DSCR file, defined plainly and cross-referenced: rents, PITIA, reserves, seasoning, vesting and prepayment.
A broker, not a lender
We arrange and shop financing from wholesale lenders, so the comparison happens on your side of the table.
No rate theatre
We do not publish teaser figures. Pricing depends on your property and profile, so we quote only after reviewing the scenario.
Business purpose only
Our focus is narrow on purpose: non-owner-occupied investment property qualified on its rent.
How it works
Read the underwriting guide- Run the ratioEnter rent, taxes, insurance, dues and your own rate assumption in the calculator.
- Send the scenarioTell us the property, state, purpose and how you plan to hold title.
- We shop wholesaleA Loan Daddy loan specialist compares programs from multiple wholesale lenders that fit the file.
- Lender underwritesThe chosen lender reviews appraisal, credit, reserves and entity documents, then funds at closing.
Loan types we arrange
All about DSCR loansDSCR loans
A debt-service-coverage-ratio loan qualifies a rental property on the rent it produces rather than on the borrower’s tax returns. This is the core entry in our catalogue.
Read the entry →DSCR purchase loans
Buying a rental with DSCR financing means qualifying a property that may not yet have a tenant. Here is how wholesale lenders bridge that gap.
Read the entry →DSCR cash-out refinance
A cash-out refinance replaces the existing mortgage on a rental with a larger loan and returns the difference to the owner, qualified on the property’s rent.
Read the entry →Short-term rental loans
Short-term rentals earn income by the night, not the month. DSCR programs that accept them need a defensible way to turn that into a monthly figure.
Read the entry →Portfolio and multi-property loans
Once an investor owns several rentals, financing them one at a time becomes its own job. Portfolio structures consolidate that work into a single loan.
Read the entry →DSCR calculator
Work out PITIA and the coverage ratio from your own numbers. No preset rate; you supply it.
Open the calculator →From the encyclopedia
Full index- DSCR ratio
The debt service coverage ratio (DSCR) is a measure of whether a rental property generates enough income to cover its own housing debt, calculated as gross monthly rent divided by the monthly principal, interest, taxes, insurance and association dues (PITIA).
- Gross rents
Gross rents are the total scheduled rental income a property produces before any deduction for vacancy, operating expenses, management or debt service.
- PITIA
PITIA is an acronym for principal, interest, taxes, insurance and association dues, representing the total monthly carrying cost of a financed property.
- Vesting in an LLC
Vesting in an LLC means holding legal title to real property in the name of a limited liability company rather than in the name of one or more individuals.
- Prepayment structures
A prepayment structure is the contractual term in a loan that defines whether, when and at what cost a borrower may pay off all or part of the principal before maturity.
- Appraisal rent schedule
An appraisal rent schedule is the section or addendum of a residential appraisal in which the appraiser analyzes comparable rentals and states an opinion of market rent for the subject property.
- Reserves
Reserves are verified liquid or near-liquid assets that a borrower must hold after closing, usually expressed as a number of months of the subject property PITIA.
- Seasoning
Seasoning is the length of time that must elapse after a specified event, most often the acquisition of a property, before a lender will permit a particular transaction or rely on a particular figure.
Long-form guides
All guidesHow DSCR Loans Are Underwritten: A Step-by-Step Reference
A step-by-step reference to how a DSCR loan file is evaluated: rents, PITIA, the ratio, credit, reserves, the appraisal, and entity documentation.
Read the guide →DSCR Loans for Short-Term Rentals: How STR Income Is Evaluated
How DSCR lenders treat short-term rental income: accepted rent sources, market data reports, seasonality, appraisal considerations, and documentation.
Read the guide →Buying a Rental in an LLC With a DSCR Loan
How DSCR financing works when title is held in an LLC: vesting, operating agreement review, personal guaranty, title, and naming the entity on insurance.
Read the guide →Common questions
All FAQsWhat is a DSCR loan?
A DSCR (debt service coverage ratio) loan is business-purpose financing for a non-owner-occupied rental property that qualifies primarily on the property’s rent compared with its full monthly payment, rather than on the borrower’s personal income.
How is the DSCR calculated?
Divide the property’s gross monthly rent by its monthly PITIA: principal, interest, property taxes, hazard insurance and any association dues. A result of 1.00 means the rent exactly covers the payment. Some lenders add items such as flood insurance or management to the expense side.
Is DSCRLoans.loan a lender?
No. DSCRLoans.loan is a brand of Loan Daddy LLC, a licensed mortgage broker. We arrange and shop financing from wholesale lenders, who make the credit decision and fund the loan.
What does a mortgage broker do on a DSCR loan?
A broker gathers your scenario, compares programs from multiple wholesale lenders, submits the file to the lender that fits, and coordinates appraisal, title, insurance and closing. The broker is compensated as disclosed in your loan documents.
Can I live in the property?
No. DSCR loans arranged through DSCRLoans.loan are for non-owner-occupied investment property only. Neither you nor a family member may live in it, and the loan may not be used for personal, family or household purposes.
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Start with the short version
Have a property in mind?
Tell us about the rental and the numbers. We are a mortgage broker: we arrange and shop business-purpose DSCR financing from wholesale lenders, then explain the options in plain English.
Program Structure Comparison & Investor Brief
Quick Answer · Reviewed by Loan Daddy LLC editorial team
A DSCR (Debt Service Coverage Ratio) loan on dscrloans.loan is a business-purpose mortgage for non-owner-occupied rental real estate where qualification is driven by property cash flow (Gross Monthly Rent ÷ PITIA) rather than personal W-2 or tax-return income. Loan Daddy LLC (NMLS #2827624) is a mortgage broker that compares wholesale DSCR programs across multiple lenders.
| Guideline Dimension | DSCR Rental Loan (Business-Purpose) | Private Money / Bridge (Business-Purpose) | Conventional Investment Mortgage |
|---|---|---|---|
| Primary Qualification | Property rental cash flow (Gross Rent ÷ PITIA) | Purchase basis, rehab budget (LTC), ARV, and exit plan | Personal debt-to-income ratio (DTI) and verified employment |
| Tax Returns / W-2 Required | Not required on standard DSCR shelves | Not required on asset-based bridge shelves | 2 years of personal & business tax returns and W-2s |
| Entity / LLC Vesting | Supported (LLC, LP, Corporation, or Individual) | Supported (standard for business-purpose bridge) | Generally restricted to individual borrower vesting |
| Property Occupancy | Strictly non-owner-occupied investment property | Strictly non-owner-occupied investment property | Investment property (subject to financed-property count caps) |
| Loan Daddy LLC Role | Wholesale mortgage broker comparing multiple DSCR shelves | Wholesale mortgage broker comparing private & bridge capital | Scenario comparison benchmark |