Who this is for
Built for real estate investors
Portfolio builders
Conventional loans cap debt-to-income as you add rentals. DSCR looks at each property's rent, not your personal debt load.
Self-employed investors
Your tax returns show low income by design. DSCR doesn't use them.
Long-term rental owners
On Oahu, most rentals are 90+ day rentals, and DSCR is built for that.
Multifamily buyers
2–4 units, and some lenders go to 5+ unit properties.
Program highlights
What makes DSCR useful
No personal income docs
The property's income is the underwriting.
Close in your LLC
Many conventional loans won't close in an entity name.
Purchase and cash-out
Buy, or pull equity to fund the next property.
No DTI cap
Add properties as long as each one cash flows.
Qualification guidelines
What lenders look at
Typical guidelines across my lender network. Every file is different, and I will tell you exactly where you stand after a quick review.
| Factor | Typical requirement | Required? |
|---|---|---|
| DSCR ratio | Usually 1.0+ (rent ÷ PITIA); some programs lower | ✓ YES |
| Credit score | Often 660–700+ | ✓ YES |
| Down payment | 20–25% for purchase | ✓ YES |
| Appraisal with rent schedule | Confirms value and market rent | ✓ YES |
| W-2s / tax returns | Not needed | ✗ NOT REQUIRED |
| DTI calculation | Not used | ✗ NOT REQUIRED |
| Entity closing | LLC or personal name | ✓ BOTH OK |
In Hawaii
Hawaii rental rules change the math
- Oahu short-term rentals. Honolulu's Ordinance 22-7 set a 90-day minimum for rentals outside resort-zoned areas, so most Oahu DSCR loans use long-term rent.
- Maui County passed a law to phase out many apartment-district vacation rentals. Check current county rules before counting on short-term income.
- Condotels and resort-zoned units can use short-term income with the right lender. Condotels →
- Maintenance fees and GET/TAT affect cash flow; I include fees in the DSCR calculation.
How it works
From first call to closing
- Run the numbersRent ÷ (principal, interest, taxes, insurance, HOA). 1.0+ usually works.
- ApplyNo income docs to gather; I shop 65+ lenders.
- AppraisalValue and market rent confirmed.
- CloseYour name or your LLC.
Common questions
DSCR Investor FAQ
What is a DSCR loan?
A debt-service coverage ratio loan qualifies you on the property's rent compared with its payment, instead of your personal income.
Do I really not need tax returns?
Correct. Lenders verify credit, assets, the property and its rent, not your personal income.
Can I use Airbnb income on Oahu?
Only where short-term rentals are legal, such as resort-zoned areas or permitted units. Most Oahu rentals must be 90+ days under Ordinance 22-7.
Can I close in my LLC?
Yes. Most DSCR lenders allow LLCs, with a personal guarantee.
How many properties can I finance?
Many DSCR lenders have no cap on the number of financed properties.
Sources: City and County of Honolulu Ordinance 22-7 (short-term rentals); Maui County Bill 9 (2024), vacation rental phase-out. Lender DSCR guidelines vary.
Bank statement, P&L, DSCR, ITIN, foreign national, condotel and fix-and-flip programs are non-QM or business-purpose products. They are not conventional, FHA, VA or USDA loans, and rates and down payments are typically higher.
