Purchase or refinance a rental property—
without personal income docs
- Rates have moved down—it’s a good time to compare DSCR pricing.
- 20% down options, no‑reserves options, and No‑DSCR/No‑Ratio programs are available through select lenders.
- Refi boost: qualify using the higher of market rent or lease (program‑dependent).
- Cash‑out on rehab? Many lenders now allow no seasoning.
- Want a stronger approval? See “Boost Your DSCR with Asset Depletion” below.
Quick refresher: What is a DSCR loan?
A Debt Service Coverage Ratio (DSCR) loan qualifies investment properties using the property’s cash flow—not your personal W‑2s/tax returns.
-
DSCR = Gross Rent ÷ PITIA
(PITIA = Principal + Interest + Taxes + Insurance + HOA, if any)- If DSCR ≥ 1.00: Gross rent covers the payment.
- Many lenders price better at 1.10–1.25+.
- No‑DSCR/No‑Ratio programs may approve even when the ratio is <1.00, based on credit, LTV, property profile, and overall risk.
What’s new (and why that matters for rates)
Recent program updates across multiple DSCR lenders mean fewer hurdles and more ways to price:
Minimum 20% down
options now widely available.
No-Reserves options
exist with select lenders (varies by profile).
Refinances
Some programs let you use the higher market rent or the lease to qualify.
Rehab Cash-out
Increasingly common to see no seasoning requirements.
No-DSCR/No-Ratio Programs
Approvals with no cash‑flow requirement—great for transitional properties or high‑potential STRs.
Quick wins to explore with your advisor
- Push credit to the next tier (e.g., 679 → 680).
- Nudge LTV down to the next breakpoint (80 → 75%).
- Choose a prepay term that balances flexibility and price (3‑year is a common middle ground).
- Consider interest‑only if it improves DSCR and overall ROI.
- Validate market rent carefully (appraisal 1007; STR data where allowed).
Boost Your DSCR with Asset Depletion
Need to increase “qualifying income” to help the numbers pencil?
Some lenders allow Asset Depletion as a supplemental qualifying income source. In plain English: You can convert a portion of your liquid assets into monthly income for underwriting—helping more properties meet DSCR requirements or achieve better pricing.
How it generally works (varies by lender):
Eligible liquid assets (e.g., checking/savings, marketable securities) are divided by a set number of months (often 60) to calculate a monthly income figure.
That additional income can be used to improve your coverage or satisfy program minimums where allowed.
Great fit for high‑asset investors, seasonal income, or transitional properties.
Fast checklist: What to have ready for a quick DSCR quote
- Property city/state (or address if you have it)
- Purchase price or payoff (for refi) and desired loan amount
- Estimated market rent (or current lease terms)
- Credit score range (ballpark is fine)
- Property type (SFR, condo, 2–4 unit)
- Purpose (purchase, rate/term refi, cash‑out)
- Any key preferences (interest‑only, prepay term)
The takeaways
Rates are easing
it’s a good time to see where your property prices.
More flexible rules
(no‑reserves options, higher‑of market rent or lease, no‑seasoning cash‑out, No‑Ratio) create more paths to approval.
Asset depletion
can boost qualifying when rental coverage is close.
A great broker
will shop multiple DSCR lenders, so you get the right mix of price, terms, and speed.
About the Author
Darrin J. Seppinni is President of HomeLife Mortgage and a published author with more than forty years in the mortgage industry. He specializes in non-traditional programs—including Bank Statement Loans, DSCR Loans, and No-Doc Loan solutions—that serve self-employed borrowers and real-estate investors.
Contact
Email: darrin@homelifemtg.com | Phone: 949-681-7280
Call HomeLife Mortgage now and let us help you get pre-approved now!
Our Commitment to Excellence
At HomeLife Mortgage, our dedication to excellence is evident in the success stories of our clients. We pride ourselves on delivering top-tier service and financing solutions that meet our clients' needs. But don’t just take our word for it—hear it from those who matter most: our clients. Our Trustpilot reviews reflect our unwavering commitment to helping you achieve your homeownership and investment goals.
If you’re hungry for more insights, be sure to check out our other blog posts and subscribe to our YouTube channel for even more tips and tricks.
More Content For You:
Bank Statement Loan Refinance Cash-Out: Reap the Benefits
Bank Statement Loans for Florida's Self-Employed: Rates just Dropped
#1 Trusted Source for Bank Statement Loans in California
Questions?
Click the live chat window on our site or call (888) 677-2526. Our team is ready to assist you!
About HomeLife Mortgage
For more than 25 years, HomeLife Mortgage has built a strong reputation in California and Florida as a leading mortgage broker, servicing the needs of borrowers who have been unable to obtain conventional financing. HomeLife Mortgage is at the forefront of non-bank lending offering the next generation of mortgages including Jumbo Loans, Real Estate Investor Loans, and Bank Statement Loans.
