— NON-QM LOAN PROGRAMS
DSCR / Investor Cash Flow
Loan Programs
Qualify based on what the property earns – not what you report on your taxes. Pacific Home Loans has been closing DSCR loans for real estate investors since 2018, including complex short-term rental and condotel transactions other lenders won’t touch.
— ABOUT NON-QM LOANS
DSCR / Investor Cash Flow
Loan Programs
Pacific Home Loans offers DSCR (Debt Service Coverage Ratio) loan programs for real estate investors. DSCR loans are a type of alternative documentation (Non-QM) financing that allows borrowers to qualify based on the income generated by the property, rather than personal income or tax returns. These programs are commonly used by investors purchasing or refinancing income-producing properties, including long-term rentals and short-term vacation rental properties.
If you’re growing a rental portfolio or acquiring your first investment property, we know how to make it happen.
— PROGRAM DETAILS
How DSCR
Loans Work
DSCR qualification is built around a single core question: does the property generate enough income to cover its debt obligations? The calculation is straightforward:
- Gross rental income divided by total monthly housing expense (principal, interest, taxes, insurance, and HOA where applicable)
- A DSCR ratio above 1.0 means the property generates more income than it costs to carry
- Minimum DSCR thresholds vary by program and investor guidelines
- Some programs allow qualification below a 1.0 DSCR depending on borrower profile and property type
No personal income documentation. No tax returns. No traditional debt-to-income ratio. The property qualifies itself.
— PROGRAM DETAILS
Who DSCR Loans
Are Designed For
DSCR loans are built for investors at every stage:
- First-time investment property buyers who want clean separation from personal income qualification
- Experienced investors scaling a rental portfolio across multiple properties
- Self-employed investors who prefer not to use personal tax returns for investment financing
- Short-term rental operators in vacation and resort markets
- Borrowers with multiple financed properties who have hit conventional lending limit
Eligible Property Types
DSCR loans may be used for investment properties, long-term rental properties, short-term and vacation rental properties, and condominium units subject to project eligibility.
For condominium projects requiring additional review:
→ PrimeResort™ Condo Financing
Short-Term Rental & Vacation Property Considerations
In markets such as Hawaii, California, and Nevada, many investors purchase properties for short-term rental use. These transactions may require evaluation of zoning compliance, rental eligibility, property type classification, and income calculation methodology. In some cases, additional project review may be required.
— PROGRAM DETAILS
DSCR Condotel &
Short-Term Rental Expertise
DSCR financing may be available for certain condotel and short-term rental properties depending on project eligibility and underwriting guidelines. Pacific Home Loans has experience structuring DSCR financing for condotel and short-term rental properties, including scenarios where traditional rental documentation may not be available.
In eligible cases, income used for qualification may be derived from multiple sources, including:
- AirDNA market data and projected rental income
- Existing rent rolls or documented rental history
- Appraiser-supported rental income analysis, including market rent estimates supported by local property management data
These approaches allow for a more comprehensive evaluation of a property’s income potential, particularly in resort and vacation rental markets.
For properties with additional project complexity or non-warrantable characteristics:
→ PrimeResort™ Condo Financing
When Additional Structuring May Be Needed
Some transactions may require additional flexibility due to higher loan amounts, complex ownership structures, portfolio expansion strategies, or timing of acquisitions or refinances. In these cases, structured capital solutions may be appropriate.
— SPECIALIZED FINANCING
DSCR vs.
Other Non-QM Options
DSCR loans are one of several alternative documentation solutions. Other programs include Bank Statement Loans for income-based qualification, Asset-Based Loans for asset qualification, 1099 Income Loans, and Foreign National Loans. Each program is designed for a different borrower profile.
Compliance & Qualification Notes
DSCR loans are non-agency mortgage products that require full underwriting review. They are subject to investor guidelines and overlays, may include reserve requirements, and may require minimum DSCR thresholds. Qualification depends on property income, documentation, and program guidelines.
