Scale Your Real Estate Portfolio with a DSCR Loan from the HHL Group.

No Tax Returns. No Income Verification. Just Cash-Flow-Based Lending.

Whether you’re a first-time investor or growing your rental empire, the DSCR loan gives you a smarter way to finance investment properties—based entirely on rental income.

✅ What is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. Instead of qualifying based on your personal income, this loan qualifies you based on the income from the property itself.

If the rental income covers the mortgage payment, you’re in business.

✅ Why Investors LOVE DSCR Loans

✔ No tax returns or W-2s required
✔ Qualify based on the property’s rental income
✔ Purchase or cash-out refinance
✔ Close in your LLC, Trust, or personal name
✔ Fast approvals and simplified documentation
✔ Perfect for both long-term and short-term rentals

✅ How it works

We evaluate the property’s rental income
Compare it to the monthly loan expenses
If the DSCR ratio is 1.00 or higher, you likely qualify
Close the deal—and start collecting rent

”The HHL Group helped me buy my first Investment Property, which I scaled to a portfolio of over $2M!
Mike M.DSCR Success Story

✅ Download our free DSCR Playbook

We’ve created a free DSCR Playbook to walk you through how the strategy works, how to use it, and how to start building or scaling your portfolio.

📘 What’s inside:

Step-by-step breakdown of the DSCR loan
Purchase and refinance examples
A sample scenario of how one investor scaled to 5 properties
Pro tips for using equity to fund future deals

🎯 Whether you own one rental or ten—this guide will give you an edge.

1 Step 1

What is a DSCR loan?

A DSCR loan (Debt Service Coverage Ratio loan) is a type of real estate investment loan that qualifies the borrower based on the property’s rental income—not personal income, tax returns, or employment history. If the property’s rental income covers the monthly expenses, you’re typically eligible.

How is DSCR calculated for a rental property loan?

DSCR is calculated by dividing the property’s gross rental income by its monthly debt obligations (mortgage, taxes, insurance, HOA fees).
Example:
$2,000 monthly rent ÷ $1,800 expenses = 1.11 DSCR

A DSCR of 1.00 or higher is ideal for approval and best rates.

What is the minimum DSCR to qualify for a loan?

At HHL Group, we typically start qualifying borrowers at a 1.00 DSCR ratio, meaning the property’s income covers the loan payment. In some cases, we can approve loans down to 0.75 DSCR, though pricing may be higher.

Who can use a DSCR loan?

DSCR loans are available to real estate investors purchasing or refinancing non-owner-occupied properties.
You can qualify as:

An Individual Investor
Trust
LLC

This loan is ideal for both new investors and seasoned pros looking to scale.

Can I use a DSCR loan to refinance a rental property?

Yes! DSCR loans can be used for cash-out refinances as well as rate-and-term refis. Many investors use them to access equity and fund future investments—without needing to show tax returns or W2s.

Can I buy a rental property with a DSCR loan in an LLC?

Absolutely. One of the biggest benefits of a DSCR loan is that you can close in your LLC or Trust, allowing you to protect your assets and keep your investing business separate from personal finances.

What types of properties are eligible for a DSCR loan?

DSCR loans typically work for:

Single-family rentals (SFR)
Condos and townhomes
2–4 unit properties
Some short-term rentals (Airbnb/VRBO) — based on actual or market rent

Note: Vacation or second homes generally do not qualify.

What are the credit score and loan limits for DSCR loans?

At HHL Group, we offer:

Minimum credit score: 660
Loan amounts: $75,000 to $3,000,000
Max LTV: 80% for purchases, 75% for cash-out refinances
Prepayment penalty options: 0 to 5 years

How fast can I close a DSCR loan?

Most DSCR loans can close in 3–4 weeks, depending on appraisal timing and documentation. They’re typically faster than conventional investment loans since there’s no income verification process. An extended closing time may be necessary for unique or rural properties, due to appraisal timeframes.

Is a DSCR loan good for first-time investors?

Yes! DSCR loans are a great way for first-time real estate investors to start building a portfolio—especially if they don’t qualify for traditional financing based on W2 income or self-employment documents.

Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Rate for current rates and for more information. Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Rate for current rates and for more information. All information provided in this publication is for informational and educational purposes only, and in no way is any of the content contained herein to be construed as financial, investment, or legal advice or instruction. HHL Group does not guarantee the quality, accuracy, completeness or timelines of the information in this publication. While efforts are made to verify the information provided, the information should not be assumed to be error free. Some information in the publication may have been provided by third parties and has not necessarily been verified by HHL Group, Rate, Inc., and/or its affiliates and subsidiaries. We do not assume any liability for the information contained herein, be it direct, indirect, consequential, special, or exemplary, or other damages whatsoever and howsoever caused, arising out of or in connection with the use of this publication or in reliance on the information, including any personal or pecuniary loss, whether the action is in contract, tort (including negligence) or other tortious action. HHL Group does not provide tax advice. Please contact your tax adviser for any tax related questions.

Using funds from a Cash-out Refinance to consolidate debt may result in the debt taking longer to pay off as it will be combined with borrower’s mortgage principle amount and will be paid off over the full loan term. VA Cash-out Refinance not available in Texas. HHL Group has no affiliation with the US Department of Veterans Affairs. Contact HHL Group for more information.