Apply Now

DSCR Loans

A DSCR Loan (Debt Service Coverage Ratio loan) is a type of non-qualified mortgage (non-QM) for real estate investors where loan approval is based on the cash flow generated by the investment property, rather than the borrower's personal income. People get them to bypass the strict income and employment verification of traditional loans, allowing for easier qualification and faster portfolio expansion.

A photorealistic image of a confident business owner standing in front of a modern commercial building. The owner is holding a clipboard, symbolizing strategic planning and decision-making. In the background, the building's sleek glass facade reflects a bustling cityscape, emphasizing the business environment. Nearby, a parked delivery truck and a forklift moving inventory highlight the commercial nature of the setting. The scene conveys a sense of professionalism and readiness, capturing the essence of business growth and financial strategy. The lighting is natural, with a clear blue sky, creating a realistic and inviting atmosphere.

Document Requirments

  • Completed application
  • Last 3 years of Business Tax Returns (BTRs)
  • Last 3 years of Personal Tax Returns (PTRs)
  • Debt schedule
  • 2025 Year-to-Date Profit & Loss statement
  • 2025 Balance Sheet
  • Personal financial statement
  • Last 12 months of business bank statements
  • Voided business check
  • Color copy of driver’s license for all owners

If investment real estate is owned: Current mortgage statements or recent appraisals

If investment real estate has tenants: Copies of leases and monthly rental income

If applicable:
2024 W-2
Last two months of pay stubs
2024 K-1s

Funding Amount

The actual loan amount you qualify for depends on several factors:

  • Property cash flow & DSCR: The core underwriting metric — your net operating income must cover the proposed debt service.
  • Loan-to-Value (LTV) caps: Commonly around 75%–80% of the property value for purchase/refinance.
  • Credit score & reserves: Higher scores and more reserves can often unlock higher loan amounts or better terms.
  • Lender program type: Banks, non-QM lenders, and private lenders all have different program limits.
Download pdf now

Interested Hearing More About DSCR Loans

Working with TwoSmith Capital means having a trusted partner dedicated to your financial success.

Our expert team is ready to assist you in securing or refinancing your commercial real estate loan.

Contact us today and take advantage of our tailored solutions and professional guidance.

Fill Out The Form and we'll be in touch with an answer within 2 hours!

Get Started Today

Privacy Policy

Terms of Service