When traditional banks say no, real estate investors don’t have to stop there. DSCR loans (Debt Service Coverage Ratio loans) are designed specifically for rental property investors—and they can open doors that conventional financing keeps closed.
The Challenge: Hitting the Bank Roadblock
Our client came to us with two properties worth a combined $1.8 million. Despite strong assets, traditional banks tend to push back. Why? Because they evaluate investors based on personal income, tax returns, and W-2s—not the actual earning power of the properties.
For many investors, this is the frustrating reality of conventional financing:
- Banks rely on debt-to-income ratios tied to your job, not your rentals.
- They require extensive documentation like tax returns, pay stubs, and W-2s.
- Even seasoned investors can get turned down if their personal income doesn’t check the boxes.
The Solution: DSCR Lending
That’s where DSCR loans change the game. Instead of judging the borrower on personal income, the loan is approved based on the rental income of the property itself.
Here’s what makes it powerful:
- No tax returns, pay stubs, or W-2s required.
- Even self-employed—or unemployed—borrowers can qualify.
- The only test that matters: Does the rental income cover the mortgage payment month after month?
For this client, the answer was yes.
The Result: $600,000 Cash-Out
By using DSCR financing, we secured two separate loans against the client’s properties, unlocking $600K in cash-out capital. That’s money they can reinvest into new opportunities, scale their portfolio, or simply strengthen their financial position—all without the red tape of traditional banking.
Why It Matters for Investors
DSCR loans allow investors to go beyond the limits of conventional lending. Instead of being tied to your personal income or tax history, you can leverage the actual performance of your properties to keep growing.
👉 Looking to scale your portfolio? See how a DSCR loan could work for your next investment.
Check out the full story in Israel Lopez’s Instagram below:
