For real estate investors looking to scale their portfolios across multiple markets, access to reliable, flexible, and consistent financing is crucial. Enter the DSCR loan—a financing solution that prioritizes property cash flow over personal income. Even better, many lenders now offer DSCR loans in all 50 states, giving investors the ability to acquire or refinance rental properties from coast to coast.
In this guide, we’ll break down what DSCR loans are, why they’re perfect for out-of-state investing, and how you can leverage them to expand your rental portfolio across state lines.
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A DSCR loan (Debt Service Coverage Ratio loan) is a type of non-QM (non-qualified mortgage) loan designed specifically for real estate investors. Unlike conventional loans, DSCR loans do not require tax returns, W-2s, or DTI calculations. Instead, the loan is approved based on the property’s net operating income (NOI) compared to the proposed debt payment.
DSCR = Net Operating Income / Annual Debt Service
If your rental generates $36,000 per year in NOI and the total annual loan payments are $30,000:
DSCR = $36,000 ÷ $30,000 = 1.20
Most DSCR lenders require a minimum DSCR of 1.20 to 1.25 for approval.
Many real estate investors grow their portfolios by investing in multiple markets—often outside their home state. However, conventional lenders may not offer consistent underwriting criteria or investment property financing across states.
DSCR lenders that operate nationwide provide:
This makes DSCR loans one of the most scalable and accessible financing tools for investors focused on geographic diversification.
DSCR loans are available in all 50 U.S. states, including:
Note: Loan terms, max LTVs, and licensing requirements may vary slightly by state. Some lenders may be exempt from state-level licensing while others operate through lending partners.
| Loan Feature | Typical Range |
|---|---|
| Minimum DSCR | 1.20 – 1.25 |
| Maximum Loan-to-Value (LTV) | Up to 80% |
| Credit Score Requirement | 660 – 700+ |
| Loan Amount Range | $100,000 – $5,000,000+ |
| Eligible Properties | SFRs, 2–4 units, condos, STRs, small multifamily |
| Ownership Types | Individual, LLC, LP, S-Corp |
| Loan Terms | 30-year fixed, ARM, interest-only options |
| Prepayment Penalty | Yes (3–5 year step-down or flat) |
| Reserve Requirements | 6–12 months of PITIA |
DSCR lenders across the country will typically finance:
While DSCR loans are available nationwide, certain states are particularly attractive due to rental demand, landlord-friendly laws, and appreciation potential.
No need for W-2s, pay stubs, or tax returns—perfect for self-employed investors or those using write-offs.
LLCs, S-Corps, and partnerships can take title and secure financing—ideal for asset protection and scaling.
DSCR lenders don’t cap the number of financed properties, unlike conventional lenders.
Nationwide DSCR lenders are streamlined, offering approvals and funding in as little as 2–4 weeks.
Many DSCR lenders allow Airbnb/Vrbo income in their underwriting—opening up STR-friendly markets across the U.S.
Pro Tip: Some lenders offer DSCR calculators to pre-qualify based on your expected rental income and loan terms.
Investor Profile: Sarah owns three long-term rentals in Texas and is now expanding into Florida and Tennessee. She acquires two STRs using DSCR loans, held in separate LLCs.
For real estate investors seeking to grow portfolios across state lines, DSCR loans in all 50 states offer the ultimate flexibility. These loans eliminate the need for personal income documentation and instead focus on what matters most: property performance.
Whether you’re building long-term wealth with single-family rentals or targeting high-cash-flow STRs in vacation markets, DSCR financing provides a scalable and efficient way to invest nationwide.
Sponsored Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
