Western Pacific Home Loans
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DSCR Loans (Debt Service)

A DSCR Loan is a mortgage loan for a residential income-producing property. It is primarily based on the “Debt Service Coverage Ratio” or the cash flow of the property, rather than the borrower’s income. A traditional mortgage loan will require income verification, tax returns and a “Debt-to-Income” (DTI) ratio. DSCR Loans require none of these! Perfect for real estate investors ready to scale (no more W2!) or are looking leave behind the hassle, paperwork and headaches of conventional financing


Debt Service Coverage Ratio: No-Income Mortgage Loan

Qualify for a home loan without using your tax returns. As a real estate investor, you can avoid high rates and high points of private loans, lengthy approval processes, and strict lending criteria with a debt service coverage ratio loan, which is a type of no-income loan. Qualify for a loan based on your property’s cash flow, not your income.

Securing a debt service coverage ratio loan can help you expand your investment portfolio easier than ever before.


What Is a Debt Service Coverage Loan?

A Debt Service Coverage Ratio (DSCR) loan looks at the cash flow generated from an investment property to qualify for a mortgage instead of personal income.

What Is the Debt Service Coverage Ratio (DSCR)?

The Debt Service Coverage Ratio is a ratio of a property’s annual net operating income and its annual mortgage debt, including principal and interest. Lenders use DSCR to analyze how much of a loan can be supported by the income coming from the property as well as to determine how much income coverage there will be at a specific loan amount.

Benefits of DSCR Loans for real estate investors include:

- Quicker closing times
- No income or job history verification required
- No limit on the number of properties
- Loan amounts up to $3,500,000
- Up to 10-Unit Properties
- 75% Loan to Value cash-out
- As little as 20% on down payments
- Mixed Use Properties, OK!
- Interest-only loan option available
- Suited for new and seasoned real estate investors
- Both long-term and short-term rentals are eligible (Airbnb, VRBO, etc.)
- No reserves are required on cash out loans, and 6 months are required on all other loans unless the DSCR ratio is less than 1.



Documents Needed to Get Started - DSCR Loans


To begin your Debt-Service Coverage Ratio (DSCR) Loan application on our website, please have the following documents ready:

1. Personal & Business Information

✅ Loan Application – Complete the online application on our website.
✅ Driver’s License or Passport – Valid government-issued ID.
✅ Credit Report Authorization – We will do a soft pull on your credit during the application process.

2. Property Information

✅ Purchase Agreement (if purchasing) – Executed contract for the property.
✅ Current Lease Agreements (if applicable) – If the property is already rented.
✅ Property Insurance Information – Details of existing or proposed coverage.

3. Financial Documentation

✅ Business Entity Documents (if applicable) – LLC or corporate paperwork (if purchasing under a business name).
✅ Proof of Reserves – Bank statements showing required reserves (varies by lender).
✅ Property Appraisal (if available) – A recent appraisal or an order will be placed during underwriting.

4. DSCR Qualification

✅ Rental Income Documentation – Rent rolls or short-term rental statements.
✅ No Personal Income Verification Required – DSCR loans qualify based on property cash flow, so personal income documentation is not needed.

Need Help?
📞 [888-944-6262]
📧 [Contact@wphomeloans.com]

We look forward to helping you secure financing for your investment property!