A DSCR loan qualifies you based on a property’s rental income instead of your personal income, letting real estate investors buy or refinance without tax returns or W-2s.
Mountain Country Mortgage compares DSCR lenders on your behalf, so Northern Arizona investors qualify on their properties’ cash flow.
A DSCR loan, or debt service coverage ratio loan, is an investment property loan built around what a property earns rather than what you earn. The lender divides the property’s rental income by its monthly debt payments. A ratio above 1.0 means the property covers its own costs.
This is a business-purpose loan for investors, not primary homebuyers. It is not tied to your employment, your tax returns, or your personal debt-to-income ratio.
Mountain Country Mortgage is a broker, not a lender. We compare DSCR programs across our lender network and match you with a structure that fits your investment property.
Northern Arizona’s mix of college-town rentals, tourism-driven short-term rentals, and small-town housing demand creates real cash-flowing opportunities for buy-and-hold investors.
Many investors get turned down by conventional loans because their personal income does not fit the mold, even when their rental property performs well. A DSCR loan qualifies the deal on its own merits instead.
An investor in Winslow bought a rental duplex where the rent easily covered the mortgage payment. A DSCR loan got the deal closed without a single tax return, based entirely on what the property itself could earn.
| Requirement | Typical Range |
|---|---|
| Debt Service Coverage Ratio | Typically 1.0 or higher. Some programs allow lower with compensating factors. |
| Minimum Credit Score | Typically 620 to 680, depending on the program. |
| Down Payment | Typically 20% to 25% for purchases. |
| Property Type | Investment property only, not a primary residence. |
| Income Documentation | Rent documentation or a market rent appraisal, not personal income. |
| Loan Purpose | Purchase, rate-and-term refinance, or cash-out refinance. |
Most DSCR programs ask for 620 to 680, depending on the lender.
We calculate the property's DSCR and match you with the right lender.
Shop for a rental with income that covers its own debt payments.
We manage the file as the lender reviews the property's income and value.
Once underwriting clears, you sign, fund, and take ownership.
A couple of quick stops before you go further, so you walk into your first conversation with a loan officer already prepared.
A plain-English walkthrough of the whole process, from checking your credit to closing day.
See every loan program Mountain Country Mortgage offers, from first-time buyer options to investor financing.
Debt service coverage ratio.
It measures how much income a property produces relative to its debt payments. A ratio above 1.0 means the property earns more than it costs to carry.
No.
Approval is based on the rental income the property generates, not your personal tax returns or employment status.
Yes, many DSCR programs allow short-term rentals.
Some lenders use projected income based on market rental rates or a rental income report from a service that tracks short-term rental performance.
Yes.
Many investors use LLCs or other entity structures for DSCR loans, and most programs are built to accommodate this. Your loan officer can walk you through the documentation needed.
Some lenders still offer programs, though terms shift.
You may need a larger down payment or a higher credit score to offset the risk. Talk to your loan officer about the options for a specific property.
DSCR is long-term financing based on rental income. Hard money is short-term financing based on property value.
DSCR loans suit buy-and-hold investors. Hard-money loans suit investors who need speed for a fix-and-flip or a deal that cannot wait for a full underwriting process.
Yes, many DSCR programs cover small multifamily properties.
Duplexes, triplexes, and fourplexes are common across the region and often qualify under the same DSCR framework as a single-family rental.