Real Estate Investor Hub

A financing partner that understands rental-property economics.

Debt Service Coverage Ratio (DSCR) loans evaluate the subject property’s monthly cash flow rather than your personal W-2 income or complex tax return schedules. Scale your rental portfolio with speed and entity flexibility.

Submit Rental Scenario Direct Online Application

Loan officer responds within 1 business hour

M–F, 8:30a–6p ET · No call center, no lead farms

How Simple Mortgage Solutions Evaluates DSCR

Debt Service Coverage Ratio (DSCR) loans are designed for real estate investors who want to scale their portfolio efficiently. Instead of relying on personal tax returns, W-2s, or complex debt-to-income (DTI) calculations, qualification is centered on the gross monthly rental income generated by the subject property relative to its proposed PITIA debt service.

Program Guidelines Matrix

Maximum Leverage

Up to 80% on Purchases; up to 75% on Cash-Out Refinance

Minimum Credit Score

Typically 620-660 minimum FICO score depending on program

Loan Limits

$100,000 up to $3,500,000+

Documentation Required

Entity docs (if LLC), 2 months bank statements for down payment/reserves, appraisal with Form 1007 rent schedule or existing lease.

Key Investor Advantages

No personal W-2s or personal tax returns required for qualification
Qualify based on actual market rent (Form 1007 appraisal) or executed lease agreements
Available for 1-4 unit residential properties, condos, and eligible short-term rentals (Airbnb / VRBO)
Financing available in personal name or business entity (LLC, Corp, Partnership)
Cash-out refinance options up to 75-80% LTV for portfolio expansion
Interest-only payment options available for qualifying investors to maximize monthly cash flow

Instant DSCR Ratio Estimator

Calculate Deal Viability

Formula: Gross Monthly Rent ÷ Proposed Monthly PITIA Debt Service

Gross Monthly Rent ($): 3,200

Estimated Total Monthly PITIA Payment ($): 2,450Includes Principal + Interest + Property Taxes + Insurance + HOA

Estimated Coverage Ratio

1.31x

Strong Coverage • Best Rates & Max LTV Available

Request Custom Scenario Review with this Ratio →

Documented Execution

Recent DSCR Investor Case Studies

Real financing challenges solved for portfolio builders across our licensed states.

Smoky Mountains Short-Term Rental Acquisition

Tennessee · DSCR RentalReviewed 2024

Borrower GoalAcquire and finance a vacation rental cabin under an LLC.

Financing ChallengeAn experienced investor with multiple LLCs showed write-offs on federal tax returns, making conventional agency DTI exceed 50%.

Structure UsedStructured a DSCR loan using AirDNA / 1007 market rental projections for a cabin in Sevierville, TN, funding under the investor's LLC.

Why This StructureAsset-based qualification ignored the investor's personal tax write-offs and kept the debt inside the LLC, which is how this client holds every rental.

Verified OutcomeClosed in 21 days with 20% down, zero personal tax return analysis, and clear entity vesting.

Limitations & NotesDSCR approval depended on the 1007 market rent supporting a qualifying ratio; a lower projected rent would have required a larger down payment.

Quadplex BRRRR Cash-Out in Tampa, FL

Florida · DSCR Cash-Out RefinanceReviewed 2024

Borrower GoalExtract equity from a stabilized 4-unit to fund the next acquisition.

Financing ChallengeBorrower completed a full cosmetic rehab on a 4-unit building and needed to pull out capital to fund the next deal.

Structure UsedApplied a 75% LTV DSCR Cash-Out loan based on newly signed leases generating a 1.28 DSCR ratio.

Why This StructureCash-out at 75% LTV maximized tax-free equity while the signed leases satisfied the qualifying-rent documentation the program required.

Verified OutcomeExtracted $185,000 in equity with fixed 30-year terms to scale the portfolio further.

Limitations & NotesCash-out was capped at 75% LTV; a higher payout would have required a lower-leverage program or additional reserves.

DSCR Frequently Asked Questions

Clear answers to common questions about rent calculations, LLCs, and vacation rentals.

How is the DSCR ratio calculated?

DSCR = Gross Monthly Rental Income divided by Monthly PITIA (Principal, Interest, Taxes, Insurance, and HOA dues). A ratio of 1.0 means the property breaks even. Most programs prefer 1.15 to 1.25, while specialized programs can accommodate ratios below 1.0 or no-ratio options with compensating factors.

Do you require tax returns or employment verification?

No. DSCR programs are asset-based business-purpose mortgages. Qualification is based on the cash flow of the property and the borrower's credit/liquidity profile, not personal taxable income.

Can I close in an LLC?

Yes. In fact, most investors prefer closing under a single-member or multi-member LLC. We review the Operating Agreement, Certificate of Good Standing, and EIN letter during processing.

Are short-term rentals (STRs) like Airbnb permitted?

Yes, select DSCR programs permit short-term rental properties. Qualification can be based on 1007 market rent, 12-month historical statements, or specialized AirDNA rental market analyses depending on the program.