Real estate investors are always looking for financing solutions that allow them to scale their portfolios without the traditional roadblocks of income verification and strict underwriting guidelines. DSCR (Debt-Service Coverage Ratio) loans are designed specifically for this purpose, making it easier for investors to secure funding based on a property’s income potential.
At Younited Lending, we specialize in DSCR loans that put the focus on rental income—not your personal income. Whether you’re looking to expand your portfolio, refinance, or tap into equity, our loan solutions are designed to help you invest smarter and grow faster.
What is a DSCR Loan?
A Debt-Service Coverage Ratio (DSCR) loan is a mortgage designed for investment properties, where eligibility is determined by the property’s rental income instead of the borrower’s personal income.
DSCR Formula:
📊 DSCR = Net Operating Income (NOI) ÷ Annual Debt Service
• A DSCR above 1.0 means the property generates enough rental income to cover its mortgage payments.
• A DSCR below 1.0 suggests the rental income isn’t sufficient to fully cover the debt.
🔹 Example of a Strong DSCR:
• Property Price: $250,000
• Monthly Rent: $3,000
• Mortgage Payment: $1,748
• DSCR Calculation: 1.60 (Solid Investment)
🔹 Example of a Weak DSCR:
• Property Price: $250,000
• Monthly Rent: $1,800
• Mortgage Payment: $1,748
• DSCR Calculation: 0.91 (Risky Investment)
Benefits of DSCR Loans for Real Estate Investors
✅ No Personal Income Verification – Qualify based on rental income alone.
✅ Fast Approval Process – Skip W-2s, tax returns, and lengthy underwriting.
✅ Unlimited Properties – No cap on the number of investment properties you can finance.
✅ Available for LLCs & Business Entities – Protect your investments with legal structuring.
✅ Options for Foreign Investors – Non-U.S. residents can qualify based on rental income.
Potential Drawbacks
❌ Higher Down Payment – Expect 20-30% down for most DSCR loans.
❌ Higher Interest Rates – Slightly higher than conventional loans, but offset by rental income.
❌ Not Available for Primary Residences – Strictly for income-generating properties.
DSCR Loan Requirements at Younited Lending
🔹 Minimum DSCR Ratio: 0.75+
🔹 Credit Score: 620+
🔹 Down Payment: 20-30%
🔹 Eligible Properties: Single-family homes, multi-units, short-term rentals (Airbnb), condos
📌 Pro Tip: The higher your DSCR ratio, the better your interest rate and loan terms!
How to Apply for a DSCR Loan with Younited Lending
📍 Step 1: Get Pre-Approved – Quick online application with no impact on your credit.
📍 Step 2: Submit Property Details – Rental income, expenses, and market comps.
📍 Step 3: Underwriting & Approval – We assess DSCR, property value, and terms.
📍 Step 4: Loan Closing – Secure your financing and start generating rental income!
Invest Smarter with Younited Lending
At Younited Lending, we’re committed to helping real estate investors scale their portfolios with flexible, investor-friendly loans.
💰 Up to 85% LTV – No Tax Returns Needed
📈 Qualify Based on Rental Income – Not Personal Income
⏳ Fast Closings – Get Pre-Approved in 24 Hours
🚀 Ready to grow your real estate portfolio? Contact Younited Lending today for a free consultation!
📞 Call us now at 843-419-7600
📩 Apply online in minutes: www.lendyounited.com https://www.lendyounited.com