30-Year DSCR Rental Loans for Real Estate Investors
Fast Approvals in 14 Days | Purchase & Cash-Out Refinance | Nationwide Coverage
30-Year DSCR Rental Loans for Real Estate Investors
HardMoneyMan.com LLC offers long-term DSCR (Debt Service Coverage Ratio) loans for landlords and investors. Qualify based on property cash flow, not personal income. Fast closings, flexible terms, and support for BRRRR strategies nationwide.
or call 516-526-8445 to speak with a DSCR loan expert
What is a DSCR Rental Loan?
Debt Service Coverage Ratio (DSCR) loans are long-term rental property loans that qualify based on **property cash flow**, not your personal income. Ideal for investors using the BRRRR method or building rental portfolios, DSCR loans allow you to scale without tax returns or W-2s.
DSCR Loan Highlights
- Credit Score: 660+ mid FICO
- Property Type: 1–4 unit residential properties
- Loan Amount: Up to $1M
- Close: As fast as 14 days
- Loan Options: 30-year fixed or interest-only
- Restrictions: No rural properties
Why Investors Choose DSCR Loans
- Scale Your Portfolio: Acquire multiple rental properties using property cash flow, not personal income.
- Fast Closings: Get funded in as little as 14 days to compete with cash buyers.
- Flexible Terms: 30-year fixed or interest-only options maximize cash flow.
- BRRRR-Friendly: Perfect for buy, rehab, rent, refinance, repeat strategies.
- No Tax Returns Required: Qualification is based on property income, not W-2s or paystubs.
Try our DSCR calculator below and see if you qualify!
DSCR & LTV Calculator
This tool assumes a 30-year amortized loan for DSCR calculation. DSCR above 1.1 and LTV below 80% are typically required.
How to Calculate DSCR for Rental Properties
Debt Service Coverage Ratio (DSCR) measures rental property cash flow versus debt payments. A higher DSCR means stronger income coverage and easier loan approval.
| Metric | Formula / Example |
|---|---|
| Net Operating Income (NOI) | Gross Rental Income − Operating Expenses |
| Total Debt Service | Annual Loan Payments (Principal + Interest) |
| DSCR | NOI ÷ Total Debt Service = 1.25 (Example) |
Lenders typically want a DSCR ≥ 1.2 for investment properties to ensure sufficient cash flow.
Build Your Rental Portfolio with Confidence
30-year fixed loans for non-owner-occupied properties. DSCR-qualified. Fast approvals. Flexible terms.
What Is the BRRRR Method in Real Estate Investing? A Smart Strategy to Build Passive Income
The BRRRR Method—which stands for Buy, Renovate, Rent, Refinance, Repeat—is a powerful real estate investment strategy designed to grow a portfolio of rental properties while maximizing equity and cash flow.
Step-by-Step Breakdown of the BRRRR Method
Buy Find an undervalued or distressed property with strong rental potential.
Renovate Perform strategic upgrades that add value and increase marketability.
Rent Lease the renovated property to generate stable monthly income.
Refinance Use a DSCR rental loan or similar investment property refinance product to tap into equity.
Repeat Reinvest the funds into your next property and continue scaling your portfolio.
Why Investors Use the BRRRR Strategy
Build Wealth Faster – Each refinance helps unlock equity to fund future investments.
Generate Passive Income – Rental income provides consistent, long-term cash flow.
Minimize Risk – Renovating improves value, and renting ensures consistent returns.
Scale Efficiently – Repeating the cycle allows investors to grow without draining personal capital.
Key Tips for Success with BRRRR
| Element | Why It Matters |
|---|---|
| Property Selection | Choose markets with high demand and low vacancy |
| Renovation ROI Focus | Avoid over-improving—maximize value with strategic updates |
| Accurate DSCR Analysis | Ensure rental income supports your refinance loan |
| Timely Execution | Stay ahead of market trends and funding timelines |
HardMoneyMan.com LLC: BRRRR-Friendly Lending Options
Ready to refinance your renovated rental? We offer 30-year DSCR loans with fast closings and no personal income verification—perfect for the Refinance and Repeat stages of BRRRR.
With over 25,000 funded deals and $3.5B in real estate loans, HardMoneyMan.com LLC is the go-to hard money lender for investors using the BRRRR method across New Jersey, New York, Pennsylvania, and nationwide.
What Is a DSCR Loan?
A DSCR loan (Debt Service Coverage Ratio loan) is a rental property mortgage that qualifies
based on the property’s cash flow instead of the borrower’s personal income.
DSCR loans allow real estate investors to purchase or refinance investment properties
without tax returns, W-2s, or paystubs.
These loans are commonly used for buy-and-hold rentals,
BRRRR refinances, and portfolio scaling because approval is driven
by rental income, expenses, and debt payments—not employment history.
How Is DSCR Calculated?
DSCR Formula:
DSCR = Net Operating Income (NOI) ÷ Annual Debt Service
- Net Operating Income (NOI): Annual rent minus operating expenses
- Debt Service: Principal, interest, taxes, insurance, and HOA (PITIA)
Example:
If a rental generates $36,000 in annual NOI and annual debt service is $30,000:
DSCR = 1.20
This means the property produces 20% more income than required to cover the loan,
which typically qualifies for most DSCR programs.
DSCR Loan Requirements (2026 Guidelines)
| Requirement | Typical Range |
|---|---|
| Minimum DSCR | 1.05 – 1.25+ |
| Credit Score | 660+ |
| Max LTV (Purchase) | Up to 80% |
| Max LTV (Cash-Out) | Up to 75% |
| Loan Term | 30-Year Fixed or Interest-Only |
| Property Type | 1–4 Unit Residential |
DSCR Loans vs Traditional Investment Property Loans
| Feature | DSCR Loan | Bank Loan |
|---|---|---|
| Income Verification | Not Required | Tax Returns & W-2s |
| Approval Speed | 7–14 Days | 30–60+ Days |
| Scalability | High | Limited |
DSCR & Airbnb Rental Loans – South & West
Frequently Asked Questions About DSCR Loans
What is a DSCR loan?
A DSCR loan (Debt Service Coverage Ratio loan) is a rental property mortgage that qualifies
borrowers based on the property’s cash flow rather than personal income, tax returns, or employment.
Approval is based on whether rental income can cover the property’s debt obligations.
How is DSCR calculated?
DSCR is calculated by dividing a property’s net operating income (NOI) by its
annual debt service, which includes principal, interest, taxes, insurance, and HOA dues (PITIA).
DSCR Formula: NOI ÷ PITIA
Most lenders prefer a DSCR of 1.05 or higher, with stronger terms available above 1.20.
What credit score is needed for a DSCR loan?
Most DSCR lenders require a minimum 660 credit score.
Higher credit scores can improve interest rates, leverage, and approval flexibility.
What is seasoning in a BRRRR refinance?
Seasoning refers to how long a property must be owned or rented before refinancing.
Many DSCR refinance programs require 6 to 12 months of ownership or rental history,
though some allow shorter timelines with strong documentation.
How do I maximize my BRRRR refinance?
To maximize a BRRRR refinance, focus on achieving a strong after-repair value (ARV),
completing renovations efficiently, stabilizing rental income, and maintaining accurate expense records.
A higher DSCR and lower loan-to-value (LTV) improve refinance outcomes.
Why refinance a rental property?
Investors refinance rental properties to lower interest rates, improve monthly cash flow,
consolidate debt, or pull equity to fund additional real estate investments.
What are the requirements to refinance a rental property?
Typical requirements include at least 25% equity, a 660+ credit score,
sufficient rental income to meet DSCR guidelines, and acceptable property condition.
What is a turnkey rental property?
A turnkey rental property is fully renovated, rent-ready, and often tenant-occupied at purchase,
allowing investors to generate income immediately without managing renovations.
What are the benefits of buying turnkey rentals?
Turnkey rentals offer immediate cash flow, reduced renovation risk,
and professional property management—making them attractive for passive and out-of-state investors.
What should I check before buying a turnkey property?
Investors should review tenant leases, verify property management quality,
confirm rent accuracy, inspect the property condition, and evaluate local market demand
before purchasing a turnkey rental.
DSCR Loan Terminology Explained
What Is DSCR (Debt Service Coverage Ratio)?
DSCR, or Debt Service Coverage Ratio, measures a rental property’s ability to cover its annual loan payments using rental income. It is calculated by dividing net operating income (NOI) by total debt service. A DSCR above 1.0 indicates positive cash flow.
What Is Net Operating Income (NOI)?
Net Operating Income (NOI) is the annual income generated by a rental property after operating expenses are deducted. NOI includes rental income minus expenses such as taxes, insurance, HOA dues, and maintenance, but excludes mortgage payments.
What Does PITIA Mean in DSCR Loans?
PITIA stands for Principal, Interest, Taxes, Insurance, and Association dues. DSCR lenders use PITIA to calculate a property’s total annual debt obligation when determining loan eligibility.
What Is Loan-to-Value (LTV) in DSCR Financing?
Loan-to-Value (LTV) compares the loan amount to the property’s appraised value. DSCR loans typically allow LTVs up to 75–80% depending on credit score, property type, and cash flow strength.
What Is a Cash-Out Refinance DSCR Loan?
A cash-out refinance DSCR loan allows investors to pull equity from a rental property based on its current value and cash flow. These loans are commonly used in the BRRRR strategy after renovations and rental stabilization.