DSCRDSCR and non‑QM loans
DSCR and non‑QM loans for investors and the self-employed
When tax returns don't tell the whole story, non‑QM loans look at other evidence. DSCR loans qualify on a rental property's income. Bank-statement loans use your deposits instead of tax returns.
- Licensed in Arizona
- NMLS #2786915
- Se habla español
Who it's for
Who non‑QM loans work best for
Rental property investors
Grow a portfolio without your personal debt-to-income ratio limiting how many properties you can finance.
Self-employed borrowers
Bank-statement loans calculate income from your deposits when business write-offs shrink the income on your tax returns.
Short-term rental owners
Some lenders accept short-term rental income, using the property's booking history or market data.
How it works
How DSCR loans work
DSCR stands for debt service coverage ratio: the property's monthly rent divided by its monthly housing expense, including principal, interest, taxes, insurance, and any HOA dues. A ratio of 1.00 means the rent exactly covers that expense.
The rent does the qualifying
Lenders use the current lease or a market rent estimate from the appraisal instead of your pay stubs, W-2s, or tax returns.
Close in an LLC
Many DSCR lenders let you take title in an LLC, which can help keep investment properties separate from your personal finances. Talk with your attorney or CPA about the right structure.
Investment properties only
DSCR loans are business-purpose loans for rental properties, not homes you live in. For a home you'll live in, a bank-statement loan may fit instead.
Prepayment penalties are common
Many DSCR loans charge a fee if you pay off or refinance early. We'll show you options with and without one so you can decide.
Bank-statement loans
Self-employed borrowers can qualify using personal or business bank statements to calculate income, for a primary home, second home, or investment property.
Document checklist
What you'll need to apply
Check items off as you gather them. Your list is saved on this device.
Blue Reserve Mortgage · Document checklist · DSCR & non‑QM loans
DSCR loans
Bank-statement loans
Both
Compare
DSCR vs. conventional investment loans
| This programDSCR & Non‑QM | Conventional | |
|---|---|---|
| How you qualify | The property's rental income | Your personal income and debts |
| Income documents | No pay stubs or tax returns | Pay stubs, W-2s, and tax returns |
| Title | Personal name or LLC | Personal name |
| Pricing | Usually higher | Usually lower |
| Best for | Scaling a portfolio or complex income | Strong, well-documented income |
Program availability and guidelines vary by lender and are subject to change. This is not a commitment to lend.
Questions
Common questions
What DSCR do I need?
Many lenders look for a ratio of 1.00 or higher, meaning the rent covers the housing expense. Some lenders allow a lower ratio with adjustments to pricing or other requirements.
Can I use a DSCR loan for a short-term rental?
Some lenders allow it, using the property's rental history or market data. Guidelines vary, so we match your property with lenders that accept short-term rentals.
Do DSCR lenders check my credit?
Yes. There's no personal income verification, but lenders still review your credit and require cash reserves.
What's the difference between QM and non‑QM?
Qualified mortgages follow federal ability-to-repay rules with standard income documentation. Non‑QM loans verify that you can repay in other ways, such as bank statements or a property's rental income.
Talk to a loan officer
Let's run your deal
Share the property and your goals, and a loan officer will match you with DSCR or bank-statement lenders.
- We compare multiple wholesale lenders for you
- English or Spanish, from application to closing
- No cost to ask questions
Prefer to talk? Call
928-750-6064Or choose a loan officer