DSCR loans & Tools

Qualify on Cash Flow, Not Credit

With DSCR financing, we underwrite based on your property’s net operating income—so strong rental cash flow, not personal W-2s, drives approval. Enjoy terms up to 30 years (with interest-only options), LTVs to 80%, and streamlined documentation to grow your rental portfolio with confidence.

DSCR loans & Tools

Qualify on Cash Flow, Not Credit

With DSCR financing, we underwrite based on your property’s net operating income—so strong rental cash flow, not personal W-2s, drives approval. Enjoy terms up to 30 years (with interest-only options), LTVs to 80%, and streamlined documentation to grow your rental portfolio with confidence.

DSCR LOANS

The Debt Service Coverage Ratio (DSCR) helps real estate investors gauge whether a property’s rental income is sufficient to cover monthly mortgage payments. Many DSCR loans require a minimum ratio—often around 1.2—to ensure the property’s cash flow can handle the debt.

Why a DSCR Loan?

  1. Cash‑Flow–Based Approval

    1. Qualification focuses on the property’s Debt Service Coverage Ratio—your rental income vs. mortgage payment—rather than W‑2 income or tax returns.

  2. Easier Portfolio Scaling

    1. Because approval is property‑centric, you can hold multiple DSCR loans without the conventional “cap” that traditional lenders impose.

  3. 30‑Year, Fixed or Interest‑Only Terms

    1. Lock in long‑term stability or choose an interest‑only option to maximize monthly cash flow.

  4. Fast, Streamlined Underwriting

    1. Minimal personal documentation: typical closings in 2–3 weeks once appraisal is in.

  5. Refi or Cash‑Out Friendly

    1. Tap built‑up equity for the next acquisition without resetting an entire conventional loan process.

  6. LLC & Non‑Recourse Options

    1. Title can remain in your business entity, and certain structures offer limited personal liability (subject to underwriting).

  7. Nationwide Availability

    1. Available in most states we lend, so you can invest where the numbers work best.


In short: A DSCR loan lets real‑estate investors leverage the income potential of the property itself—keeping personal finances in the background—so you can build or refinance rental portfolios with speed and flexibility.

Commercial Loan

“Stable Funding for Multi-Family and Office Properties.”

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DSCR CalCulator

Curious about monthly payments or your DSCR?

Our quick estimators have you covered.

Estimate your monthly costs in seconds.

DSCR Calculator

Estimate your Debt Service Coverage Ratio. Enter income, expenses, and loan details below.

Email DSCR Results

Check rental income vs. mortgage obligations at a glance.

How the DSCR

CalCulator Works

  • DSCR Formula: DSCR=Monthly Net Operating Income (NOI)Monthly Debt Service\text{DSCR} = \frac{\text{Monthly Net Operating Income (NOI)}}{\text{Monthly Debt Service}}

  • Monthly NOI typically means Rental Income minus Operating Expenses (property taxes, insurance, maintenance, etc.).

  • Monthly Debt Service is your projected principal + interest payment (or interest-only if applicable).

    Disclaimer: The calculations here are estimates only. Actual loan terms and ratios may vary based on full underwriting, credit profile, and property details.

  1. Monthly Rental Income: Enter the total rent you collect (or expect to collect) from tenants each month.

  2. Monthly Operating Expenses: Include property taxes, insurance, maintenance, HOA fees, and any other routine costs.

  3. Loan Amount: The principal you plan to borrow.

  4. Interest Rate: Input the annual rate for your mortgage, e.g., 5.5.

  5. Loan Term: The number of years (e.g., 30) for which you’ll repay the loan.

Upon clicking “Calculate DSCR,” the code estimates your monthly mortgage payment (based on a standard amortization formula), subtracts your operating expenses from your rental income to get Net Operating Income (NOI), and then divides NOI by the monthly mortgage payment. The resulting ratio (e.g., 1.20) indicates whether the property’s cash flow sufficiently covers its debt.

Important: DSCR thresholds vary by lender and loan product. Many investors aim for a minimum of around 1.20–1.25, meaning the property’s net income is 20–25% higher than the monthly payment.

3 Steps to Get Funded

Apply

Fill out our quick online form to detail your project and timeline.

Get Approved

Our team reviews your submission, verifying property and strategy.

Close & Fund

Sign documents, receive funds, and leverage our ongoing support.

Have a Deal in Mind?

Let’s Chat.

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  • 3379 N Lakeharbor Ln, Boise, ID

    83703, United States

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Alpha Lending LLC’s rates and loan terms are subject to change without notice and may vary based on factors such as creditworthiness, loan amount, and applicable regulations. Loan availability is not guaranteed and depends on qualification requirements, with certain products and services not available in all states or jurisdictions. Alpha Lending LLC adheres to all relevant federal, state, and local laws, including the Truth in Lending Act (TILA) and the Equal Credit Opportunity Act (ECOA), ensuring compliance with lending and consumer protection standards. All loan offers are contingent on approval and subject to change.

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