How Can I Buy an Investment Property Without Using My Personal Income?
By Jhenesis Mortgage Team | December 30, 2025
Real estate investors frequently ask: “How can I buy an investment property without using my personal income?” The answer is simple — with a DSCR loan (Debt Service Coverage Ratio loan). This powerful financing tool lets you qualify based on the property’s rental income, not your W-2s, tax returns, or personal debt-to-income ratio.
Whether you’re building a portfolio in Florida, Georgia, Maryland, or Washington DC, DSCR loans give you the freedom to scale without limitations from traditional lending guidelines.
What Exactly Is a DSCR Loan?
A DSCR loan is a non-qualified mortgage (non-QM) designed specifically for real estate investors. Instead of verifying your personal income, lenders evaluate the property’s ability to generate enough rental income to cover the mortgage payment (principal, interest, taxes, insurance, and association fees — PITIA).
The key metric is the Debt Service Coverage Ratio:
DSCR = Monthly Rental Income ÷ Monthly Mortgage Payment (PITIA)
Quick DSCR Eligibility Calculator
Instantly Check If Your Property Qualifies
Enter the estimated gross monthly rental income and total monthly mortgage payment to calculate the DSCR.
Key Benefits of DSCR Loans for Investors
- No personal income documentation — perfect for self-employed, retired, or high W-2 earners who want to preserve DTI.
- Qualify using the property’s cash flow alone.
- Unlimited number of financed properties (no Fannie Mae 10-property limit).
- Available for 1–4 unit residential investment properties.
- Competitive rates in today’s market for strong DSCR ratios.
Typical DSCR Loan Requirements (As of December 2025)
- Minimum DSCR: 1.00–1.25 (varies by lender)
- Credit Score: 620 minimum (660+ preferred for best pricing)
- Down Payment: 15–25% (lower with higher DSCR or reserves)
- Reserves: 3–12 months of PITIA typically required
- Property Types: Single-family, condos, townhomes, 2–4 units (non-owner occupied)
- No limit on number of properties financed
Frequently Asked Questions
What is a DSCR loan?
A Debt Service Coverage Ratio (DSCR) loan is a non-QM mortgage that qualifies investors based on the property’s rental income rather than personal income or employment.
What DSCR ratio do lenders typically require?
Most lenders require a minimum DSCR of 1.0 to 1.25. A ratio of 1.25 or higher offers the best rates and terms.
Do DSCR loans require personal income verification?
No. DSCR loans do not require W-2s, pay stubs, or tax returns because qualification is based solely on the property’s cash flow.
What credit score is needed for a DSCR loan?
Minimum credit scores typically start at 620–660, with better rates available for scores above 700.
Can I use DSCR loans in Florida, Georgia, Maryland, or DC?
Yes. Jhenesis Mortgage offers DSCR loans in Florida, Georgia, Maryland, and Washington DC.
Ready to Grow Your Portfolio?
Let us help you secure your next investment property with a DSCR loan tailored to real estate investors.