Rental property financing based on property cash flow, not personal income. Scale your portfolio without tax return scrutiny.
A DSCR loan — Debt Service Coverage Ratio loan — is a type of financing designed specifically for real estate investors. Instead of qualifying based on your personal income, tax returns, or employment history, the loan qualifies based on the rental income that the property generates relative to the debt service it carries.
This is a game-changer for investors who are self-employed, have complex tax situations, or simply want to scale their portfolios without each new acquisition requiring a deep dive into their personal finances. If the property cash-flows, it qualifies — regardless of what your Schedule E looks like.
Renegade Capital offers DSCR financing for rental properties across Montana. Whether you are purchasing your next rental, refinancing an existing property, or executing a BRRRR strategy after completing a renovation, our DSCR program lets you focus on the deal rather than the paperwork.
Strong coverage. Rental income exceeds debt service by 25%. Best rates and terms available.
Break-even. Rental income exactly covers the debt payments. Minimum threshold for qualification.
Negative coverage. Rental income does not fully cover debt service. May still qualify with compensating factors.
DSCR loans qualify based on the property cash flow, not your personal tax returns, W-2s, or employment history. Ideal for self-employed investors and business owners.
Scale your rental portfolio without each new acquisition triggering personal income scrutiny. Add properties based on their individual cash flow performance.
Borrow through your LLC or corporation. Keep your investment properties in the proper entity structure for liability protection and tax planning.
Unlike bridge and fix-and-flip loans, DSCR financing supports buy-and-hold investors with terms that match your rental income strategy.
DSCR loans are designed for rental property investors. The property must generate income that supports the debt. General guidelines include:
Provide property details, rental income (actual or projected), and your acquisition or refinance plan. No tax returns needed.
We calculate the DSCR based on verified rental income vs. proposed debt service and issue a term sheet.
We complete appraisal, title, and closing. You start (or continue) collecting rental income from day one.
A DSCR (Debt Service Coverage Ratio) loan qualifies based on the rental income of the property rather than the borrower personal income. The DSCR is calculated by dividing the property gross rental income by the total debt service (principal, interest, taxes, insurance). A DSCR of 1.0x means the property income exactly covers the debt payments. Most lenders require a minimum of 1.0x to 1.25x.
No. That is the primary advantage of DSCR lending. We do not require personal tax returns, W-2 forms, or pay stubs. The loan qualifies on the property cash flow, not your personal income. We will review your credit, verify the rental income (through leases or market rent analysis), and evaluate the property — but we do not underwrite your personal employment or income.
We finance single-family rentals, duplexes, triplexes, fourplexes, small apartment buildings, and small commercial properties with rental income. The property must be in Montana, must be non-owner occupied, and must generate (or be projected to generate) sufficient rental income to cover the debt service at the required DSCR ratio.
Yes. DSCR loans are available for both purchases and refinances. If you currently own a rental property with equity and want to refinance into better terms, pull cash out for portfolio expansion, or simply replace a maturing bridge loan, a DSCR refinance can accomplish that without personal income documentation.
For occupied properties, we review the existing lease agreements and verify current rent payments. For vacant properties or new acquisitions, we use a third-party market rent analysis or appraisal rent schedule to determine the fair market rent. The documented rental income is then compared to the proposed debt service to calculate the DSCR.
Stop letting tax returns hold back your investment strategy. If the property cash-flows, let's talk about financing it.