Buy single-family rentals, small multifamily, and investment properties using DSCR financing — where rental income review replaces personal income verification. Review your purchase scenario with Matt Dean at NEXA Mortgage.
NEXA Mortgage · Matt Dean · NMLS #227603 · Company NMLS #1660690
A DSCR purchase loan lets investors buy a rental property where the lender reviews the property's projected rental income and cash flow instead of personal tax returns or W-2 income. The lender compares monthly rent to the total monthly housing payment (PITIA) to calculate the debt-service coverage ratio. If rent exceeds the payment, the deal may qualify. DSCR purchase loans work for single-family rentals, condos, 2–4 unit properties, and select small multifamily buildings.
Self-employed investors
No tax-return qualification required. Rent drives the review.
LLC & entity buyers
Close in an LLC, corporation, or trust with DSCR programs.
First-time investors
DSCR programs are available for first-time rental buyers with strong rent coverage.
Portfolio builders
Scale across multiple properties with rent-based review on each purchase.
Estimate rent & payment
Start with the projected monthly rent and the estimated PITIA payment for the target property. Use the DSCR calculator to run the numbers.
Submit a pre-check
Share the property address, purchase price, down payment, rent estimate, and loan goal. No credit pull required.
DSCR review & scenario fit
Matt reviews DSCR, rent support, property type, and program fit. You get clear feedback before committing to an offer.
Close & build your portfolio
Once the scenario checks out, proceed to full approval, appraisal, and closing.
Example: Single-Family Rental Purchase
Purchase Price
$320,000
Down Payment (25%)
$80,000
Loan Amount
$240,000
Monthly Rent
$2,950
Est. P&I @ 7.5%
$1,678
Taxes + Insurance
$525
Total PITIA
$2,203
DSCR
1.34x
Monthly Cash Flow
+$747
At a DSCR of 1.34x, this scenario shows rent comfortably exceeding the full housing payment. Most DSCR programs target 1.0x–1.25x minimums — this deal would likely be a strong review candidate. Actual requirements depend on credit, property type, reserves, and program guidelines.
Not a commitment to lend. Loan options, eligibility, pricing, terms, and availability depend on borrower profile, property type, documentation, investor experience, program guidelines, and applicable licensing.
Lenders typically review: purchase contract, rent schedule or market rent analysis, entity documents (if LLC/corp), proof of down payment funds, and credit profile. Personal tax returns are generally not required — the rental income drives the underwriting.
DSCR ratio sensitivity
Even small changes in rent, taxes, or insurance can shift DSCR above or below program minimums. Run multiple scenarios before committing.
Property type matters
Single-family, condo, 2–4 unit, and select small multifamily all qualify — but program availability and DSCR minimums vary by type.
LLC & entity purchase
Closing in an LLC is supported by many DSCR programs. Expect a personal guarantee requirement in most cases. Learn about LLC DSCR loans.
Reserve requirements
Lenders may require 3–12 months of reserves per property. More properties typically mean higher reserve expectations.
Also relevant: DSCR refinance · cash-out refinance · short-term rental DSCR · state guides · DSCR calculator
Here's what I look at when an investor sends a purchase scenario — these are the real review points, not generic talking points.
Rent schedule vs. market rent. If the appraisal rent schedule comes in below what you projected, the DSCR changes. I always tell investors to check local rent comps before going under contract — don't rely on listing projections alone.
Taxes and insurance pressure. Property taxes can shift significantly after a sale — especially in states that reassess on transfer. I've seen scenarios go from 1.25x to 0.95x just on the tax estimate alone. Always use the post-sale tax rate, not the current assessment.
HOA can break the ratio. A $400/month condo association fee adds nearly $5,000/year to PITIA. In DSCR math, that's material. Condos and townhomes need extra scrutiny on the association line.
Down payment affects DSCR and pricing. More down payment means a smaller loan, less interest, and a higher DSCR. It also improves pricing tiers with many programs. If your DSCR is tight, increasing down payment by 5% can shift the whole scenario.
Credit profile matters at the margin. DSCR programs don't require tax returns, but credit still affects which programs and pricing are available. A 680 FICO and a 740 FICO may face different rate tiers — and that changes the DSCR math.
— Matt Dean, Sr. Loan Officer, NEXA Mortgage · NMLS #227603
Many DSCR purchase programs start at a 620–640 FICO minimum, but stronger pricing and more program options typically open up at 680+. A 700+ FICO often receives better rate tiers and may qualify for higher LTV options. Requirements vary by lender and program.
DSCR purchase loans typically require 20–25% down for single-family rentals. Condos and 2–4 unit properties may require 25–30%. Higher down payments can improve DSCR ratios and may unlock better pricing. Specific requirements depend on property type, credit profile, and program guidelines.
Yes — many DSCR programs allow closing in an LLC, corporation, or trust. A personal guarantee is typically required. Entity documentation and operating agreements are part of the review. See our LLC rental property loans page for more detail.
Yes — most DSCR purchase programs require a full appraisal that includes a rent schedule. The appraiser estimates market rent, which the lender uses in the DSCR calculation. If the rent schedule comes in lower than expected, the DSCR calculation changes accordingly.
Yes — many DSCR programs are open to first-time rental property investors. The review focuses on the property's rental income and cash flow, not prior landlord experience. Learn more about first-time investor DSCR loans.
Share the property, purchase price, down payment, rent estimate, and loan goal. Matt reviews DSCR, rent support, and program fit — no credit pull to start.
Loan options, eligibility, pricing, terms, and availability depend on borrower profile, property type, documentation, investor experience, program guidelines, and applicable licensing. This is not a commitment to lend. NEXA Mortgage · NMLS #1660690 · Matt Dean NMLS #227603 · Equal Housing Opportunity.