• Skip to primary navigation
  • Skip to main content
  • MORTGAGE
  • CAREERS
Ark Mortgage Inc, NMLS# 103915

Ark Mortgage Inc, NMLS# 103915

Mortgage Advisors & Lending Services in New York & New Jersey

  • About
    • Why Ark
    • Team
    • Reviews
    • Learn
      • Blog
      • Glossary
      • FAQ
      • Mortgage Calculators
    • Contact
    • Careers
    • Legal
      • Disclosures and License Information
      • Lifetime Guarantee Disclaimers
      • Privacy Policy
      • Terms of Use
  • Purchase
    • New Home Purchase
    • First-Time Homebuyer
    • Buying a Vacation Home
    • Home Buying Guide
    • Buying an Investment Property
  • Refinance
    • 2nd Lien Loan
    • Lower Your Payment
    • Pay Off Your Home Faster
    • Consolidate Your Debt
    • Get Cash From Your Home
    • Refinance Investment Property
  • Programs
    • Certified Pre-Approval
    • Alt-Doc Loan
    • Lifetime Guarantee
    • Multiple-Property Discount
    • Investor’s Loan
    • Heroes Program
  • My Loan

DSCR Rental Property Investment

Unlocking Rental Property Investment with “no-doc” or “DSCR” Loans

If you’re a real estate investor—or just starting to explore the world of rental properties—you’ve probably heard the term DSCR loan floating around. But what is it exactly? And why are more and more investors using them to grow their portfolios?

What Is a DSCR Loan? DSCR stands for Debt Service Coverage Ratio. It’s a type of mortgage designed specifically for real estate investors. The big idea behind a DSCR loan is simple: instead of qualifying based on your personal income, the lender looks at how much money the property itself is expected to bring in.

So if you’re buying a rental house, duplex, or even a small apartment building, the lender asks: Can this property make enough rental income to cover the loan payments? If the answer is yes—or close to yes—you may be eligible for a DSCR loan.

Why Investors Like DSCR Loans. One of the biggest perks of DSCR loans is that they don’t rely on your personal income or tax returns. That’s why they’re also known as “No-Doc” loans. That’s a huge plus for self-employed investors or those with complex finances. All the focus is on the property’s potential to generate cash flow.

These loans also move faster than traditional mortgages in many cases, because there’s less paperwork around your personal finances. That can be a game-changer if you’re trying to close quickly on a great investment opportunity.

All DSCR loans are not created equal. Just because a particular lender or broker claims to offer DSCR loans doesn’t mean you will get the best loan. DSCR loans vary in interest rates, down payment requirements, and DSCR ratio (see below). Less obvious variables are loan terms and prepayment penalties which can lock you in to unfavorable loans as time goes on.

A “better” DSCR loan is the one that aligns with your investment strategy, cash flow needs, and long-term goals—not just the one with the lowest initial rate. Working with a lender who understands investment real estate—not just residential lending—is huge.

How the DSCR Is Calculated. The debt service coverage ratio is a simple formula:

DSCR = Rental Income ÷ Loan Payment

For example, if your rental income is $2,000 per month and your mortgage payment (including principal, interest, taxes, and insurance) is $1,600, then your DSCR is 1.25. Most lenders like to see a DSCR of 1.0 or higher, meaning the property at least breaks even. Some may accept slightly lower ratios if you have a strong credit score or a solid down payment.

Is a DSCR Loan Right for You? If you’re planning to live in the home, this loan isn’t for you—it’s strictly for investment properties. But if you’re looking to build or expand a rental portfolio, a DSCR loan could be a powerful tool. Just remember: lenders still care about your credit score, down payment (usually 20–25%), and the quality of the property. But the focus is on the deal, not your day job.

Want to Learn More? Whether you’re buying your first rental or your fifth, our team can walk you through how DSCR loans work—and how they could work for you. Let’s talk numbers, strategy, and how to turn rental income into real wealth.

Sign up for blog updates.

Blog Update List
First
Last
Enter Email

Posted: July 1, 2025 Last Modified: July 1, 2025Categories: Investments, Purchase

Explore more

About Us FAQ Call (833) 215-8500 Apply Now

Footer

Ark Mortgage, Inc. NMLS ID #103915

400 Rella Blvd, Suite 300 • Montebello, NY 10901 • (800) 247-4432

Serving California, Arizona, Colorado, Connecticut, Florida, New Jersey, New York,  Pennsylvania & Texas
For licensing information see our licensing page or visit the NMLS Consumer Access page.

For Texas consumers, learn how to file a complaint here. 

Equal Housing Opportunity

Rates, terms and programs are subject to change without notice. All loans are subject to appraisal and property condition requirements and underwriting approval. The information on this website does not represent an offer to enter into a loan agreement. Restrictions apply

Copyright © 2025 · Ark Mortgage, All Rights Reserved.

  • Email
  • Facebook
  • Instagram
  • LinkedIn
  • Vimeo
Ark Mortgage, Inc. BBB accredited business profile
BBB RATING: A+
  • Terms of Use
  • Privacy Policy
  • NMLS Consumer Access
  • Lifetime Guarantee Disclaimers
Online Application

START HERE:

I am looking to: *
logo acf-forms activecampaign authorize aweber bootstrap campaignmonitor constant_contact getresponse googlesheets highrise hubspot mailchimp mailpoet paypal icon polylang salesforce salesforcealt stripe stripealt twilio woocommerce Zapier required delete move drag clear noclear duplicate copy clone tooltip tooltip_solid forbid checkmark image checkmark circle checkmark square check check1 plus plus1 plus2 plus3 plus4 minus minus1 minus2 minus3 minus4 cancel cancel1 close report_problem_solid report_problem arrowup arrowup1 arrowup2 arrowup3 arrowup4 arrowup5 arrowup5_solid arrowup7 arrowup6 arrowup8 arrowdown arrowdown1 arrowdown2 arrowdown3 arrowdown4 arrowdown5 arrowdown5_solid arrowdown7 arrowdown6 arrow_left arrow_right filter download upload2 download2 hard_drive pencil_solid pencil pencil-message signature register account_circle_solid account_circle address_card paragraph checkbox_unchecked checkbox checkbox_solid dropdown caret_square_down radio_unchecked scrubber location_solid location toggle_on toggle_off shield_check shield_check_solid clock clock_solid email_solid mail_bulk code tag tag_solid price_tags search sitemap file file_text_solid file_text option option_solid more_horiz more_vert more_horiz_solid more_vert_solid calculator key key Filled Key Icon keyboard eye eye_solid eye_slash_solid page_break view_day attach_file printer header h1 repeat repeater save sliders code_commit star star_full star_half star_feedback linear_scale pie_chart stats_bars sms feed align_right align_left button browser cloud_upload_solid shuffle swap pallet fingerprint ghost heart_solid heart history import export label_solid label lock_open lock alt_lock dollar_sign percent notification external_link pageview_solid pageview settings stamp support text white_label building icontact sendinblue sendy wordpress credit_card credit_card_alt cc_amex cc_discover cc_mastercard cc_visa cc_paypal icon cc_stripe price product total quantity directory Preview
Find an Advisor
Contact Us (Investors)
First
Last
Please select a valid form