Are DSCR loans good for self-employed real estate investors?
Yes — self-employed investors are one of the main reasons DSCR loans exist, because the loan qualifies on the property's rent rather than on income shown on tax returns. A business owner whose returns show low taxable income after deductions can be declined for a conventional mortgage even with strong cash flow; a DSCR file never reads those returns. Silt sizes the loan on the ratio of rent to payment, with a 1.00 floor, up to 80% loan-to-value on a purchase and loans to $10M. What the underwriter still reviews is credit (a 660 minimum FICO), reserves held in bank or brokerage accounts, the down payment's source, and the property and its appraisal. The loan can close in your LLC, and it does not count against the number of conventional mortgages you hold. The trade-off is price: DSCR rates are usually higher than an owner-occupied conventional mortgage.
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Last reviewed 19 October 2026 · Terms are illustrative, not a commitment to lend; every loan is subject to underwriting.