DSCR Loans for Real Estate Investors in 36 States and DC
North Star Mortgage Network helps real estate investors buy and refinance rental property with DSCR loans that qualify on the property's rent, not your tax returns. We arrange business-purpose DSCR loans in Florida and 35 other states, plus Washington, DC, whether you're buying your first rental in Jacksonville or adding to a portfolio out of state.
Updated October 2026. If you invest in rental property, your tax returns may not tell the whole story. Write-offs that save you money at tax time can make it look like you earn less than you do. A DSCR loan qualifies you on the property's rent instead.
North Star Mortgage Network, Inc. arranges business-purpose DSCR loans for non-owner-occupied rental property in Florida and 35 other states, plus Washington, DC. We've served borrowers since 2000, and we compare options from many wholesale lenders so you see your choices side by side.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. Instead of your personal income, the loan looks at the property:
DSCR = the property's monthly rent ÷ its monthly payment (principal, interest, taxes, insurance and any HOA dues).
- A DSCR of 1.0 means the rent covers the payment.
- Above 1.0 means the property brings in more than it costs each month.
- Some programs allow a DSCR below 1.0 for qualified borrowers, usually with more money down.
Example (estimate based on the information provided): rent of $2,400 and a total monthly payment of $2,000 gives a DSCR of 1.2.
Who a DSCR Loan Is For
- Self-employed investors whose tax returns show low income after write-offs
- Investors who want to grow past the property limits of conventional loans
- Buyers who hold property in an LLC
- Long-term and short-term rental investors
- Investors doing a cash-out refinance to fund the next purchase or improvements
What You Can Use It For
- Buying a 1–4 unit rental property
- Buying a rental condo, including some condos that don't meet conventional rules
- Rate-and-term refinance on a rental
- Cash-out refinance on a rental, with the funds used for a business purpose
These are business-purpose loans for non-owner-occupied rental property. They are not for a home you will live in. If you plan to live in the property, ask us about bank statement loans and other owner-occupied options.
Program Highlights
- Qualify on the property's rent, with no personal income verification on most programs
- No tax returns or W-2s on most programs
- 1–4 unit homes and condos
- Purchase, rate-and-term and cash-out refinance
- Gift funds may be allowed on purchases
- Close in your name or your LLC's name, depending on the program
Available for qualified borrowers. Program guidelines apply. Loan amounts, loan-to-value limits and credit requirements vary by program.
DSCR Options for Different Investors
| Option | How it works | Good fit for |
|---|---|---|
| Standard DSCR | Qualify on the property's rent. 1–4 units, including some non-warrantable condos and condotels. | Most rental investors |
| Small multifamily (5–8 units) | Qualify on the building's rents; some programs allow a couple of vacant units. | Investors moving up to small apartment buildings |
| DSCR below 1.0 | Some programs allow rent that doesn't fully cover the payment, usually with more money down. | High-value or appreciation markets |
| Equity-based (no-ratio) | No DSCR calculation. The loan is based mainly on your equity, at a lower loan-to-value (often around 55%). Some programs don't set a minimum credit score and may consider recent credit events. | Refinancing out of a hard money loan, or cash-out after a credit setback |
| Alt-doc investor loans | Qualify with bank statements, a P&L, 1099s, a written verification of employment, or assets instead of tax returns. | Self-employed investors who'd rather show income |
Loan amounts reach into the low millions on many programs. Credit, loan-to-value and reserve requirements vary by program. Available for qualified borrowers; program guidelines apply.
States Where We Arrange DSCR Loans
North Star Mortgage Network arranges business-purpose DSCR loans on rental property in these 36 states and Washington, DC:
| Alabama | Alaska | Arkansas | Colorado |
| Connecticut | Delaware | Florida | Georgia |
| Hawaii | Illinois | Indiana | Iowa |
| Kansas | Kentucky | Louisiana | Maine |
| Maryland | Massachusetts | Mississippi | Missouri |
| Montana | Nebraska | New Hampshire | New Mexico |
| North Carolina | Ohio | Oklahoma | Pennsylvania |
| Rhode Island | South Carolina | Tennessee | Texas |
| Washington | West Virginia | Wisconsin | Wyoming |
| Washington, DC |
We're based in Jacksonville, Florida, and work with investors buying across the country by phone, email and secure online application.
How It Works
- Tell us about the property. Address, purchase price or value, and the expected rent.
- We run the numbers. We estimate the DSCR and compare options from many wholesale lenders.
- Apply online. A simple, secure application.
- Appraisal and rent estimate. The appraiser confirms the value and market rent.
- Close. In your name or your LLC's name, depending on the program.
DSCR and Investor Guides
- DSCR and investment property loans in Jacksonville
- DSCR loans for first-time investors
- Short-term rental DSCR loans in St. Augustine
- Investment property loans in Jacksonville
- How rental income is counted on conventional loans
- Bank statement loans for self-employed borrowers
- Asset-based mortgages
- Foreign national mortgages
DSCR Loan Questions
Do I need to show my income for a DSCR loan?
On most programs, no. The loan qualifies on the property's rent compared with its payment. Program guidelines apply.
What DSCR do I need?
Many programs look for 1.0 or higher. Some allow lower ratios for qualified borrowers, usually with a larger down payment.
Can I close in an LLC?
Many DSCR programs allow closing in an LLC. We'll confirm which options fit your situation.
Can I use a DSCR loan on a short-term rental?
Some programs allow short-term rental income. How the rent is documented varies by program.
Can I live in the property?
No. DSCR loans are business-purpose loans for non-owner-occupied rental property only.
Do you only work in Florida?
No. We're based in Jacksonville and arrange business-purpose DSCR loans in the 36 states and Washington, DC listed above.
Can I get a DSCR loan after a bankruptcy or late payments?
Some equity-based DSCR programs may consider recent credit events, including a recent bankruptcy or mortgage lates, when there's enough equity in the property. Expect a lower loan-to-value. Program guidelines apply.
Can I refinance a hard money loan into a DSCR loan?
Often, yes. Many investors use a DSCR or equity-based DSCR loan to replace a short-term hard money loan with long-term financing. Subject to credit approval.
Do you finance 5–8 unit buildings with DSCR?
Yes. Some DSCR programs cover small multifamily buildings of 5 to 8 units, usually with higher credit and lower loan-to-value requirements than 1–4 unit properties.
Talk to North Star
Tell us about your next rental and we'll run the numbers with you. Call 904-880-6741, get a rate quote, or apply online.
North Star Mortgage Network, Inc. | Company NMLS #356789 | Nathan Young NMLS #325206 | 12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 | 904-880-6741 | Equal Housing Opportunity. Business-purpose loans for non-owner-occupied rental property only. Rates, payments and terms are estimates based on the information provided and are subject to change. All loans subject to credit approval. Available for qualified borrowers; program guidelines apply. This is not a commitment to lend.
DSCR loans are business-purpose loans for non-owner-occupied rental property. If you want to qualify on rental income instead of tax returns, call North Star Mortgage Network at 904-880-6741 or request a quote. All loans subject to credit approval.
