DSCR Loans (Debt Service Coverage Ratio)

DSCR Loans in Florida and 45+ States: Smart Financing for Real Estate Investors with Ferrari Lending

Summary:
Debt Service Coverage Ratio (DSCR) loans are designed for real estate investors who prefer qualifying based on rental income rather than personal income. At Ferrari Lending, we help investors across Florida and in over 45 approved states acquire or refinance income-producing properties without the need for tax returns, pay stubs, or traditional employment verification. As an experienced mortgage broker, we work with a variety of wholesale lenders to offer the most competitive terms and flexible guidelines for each unique scenario. Whether you’re expanding your portfolio or optimizing cash flow, DSCR loans are a powerful solution—fast, streamlined, and built for growth.

What Is a DSCR Loan?

A DSCR loan allows real estate investors to qualify for financing based on the income generated by the subject property, rather than their personal financial documents. DSCR stands for Debt Service Coverage Ratio, a simple calculation that measures whether the property's income can cover its debt obligations.

DSCR = Gross Monthly Rent ÷ PITIA (Principal, Interest, Taxes, Insurance, HOA)

For instance, if a property generates $2,000 in rent and the monthly mortgage payment (PITIA) is $1,500, the DSCR is 1.33. A DSCR of 1.0 or higher generally qualifies, though we also offer solutions for investors with slightly lower DSCRs when other strengths—such as good credit or strong reserves—are present.

At Ferrari Lending, we make DSCR financing seamless. We match your loan scenario with the ideal lender from our network to ensure competitive pricing, quick turnarounds, and minimal paperwork.

Key Benefits of DSCR Loans at Ferrari Lending

• No Income or Employment Documents Required
  No tax returns, pay stubs, or W-2s. Approval is based entirely on the property’s rental income.
• Fast Closings – 10 to 14 Days Typical
  Streamlined underwriting and experienced investor-friendly teams help you close fast, even in competitive markets.
• Loan Amounts from $100K to $3M+
  Fund rental properties ranging from single-family homes to 2–4 unit dwellings, condos, and townhomes.
• Lower DSCRs Accepted
  Qualify with DSCRs as low as 0.75, depending on credit, reserves, and other compensating factors.
• Cash-Out Options Up to 75% LTV
  Refinance and pull equity out of your rental properties to reinvest or pay off higher-cost debt.
• Short-Term and Long-Term Rentals Eligible
  Whether your investment property has a traditional lease or earns income via Airbnb or VRBO, we have solutions.

Ferrari Lending DSCR Loan Guidelines

We offer a wide array of investor-friendly DSCR products. The below reflects typical DSCR loan standards available through our network:

RequirementDetailMin. Credit Score660 (better terms at 700+)Loan Amounts$100,000 to $3,000,000+Max LTV80% for purchase/rate-term; 75% for cash-outMin. DSCR0.75+ accepted; 1.0+ preferredProperty TypesSFR, 2–4 units, condos, townhomesLease or Rent Documentation12-month lease, Form 1007, or short-term rental historyOwnership TypeTitle in personal name or LLC allowed (verify state LLC registration)Reserves3–6 months PITIA typically requiredPrepayment PenaltiesOptional – many investors opt for 3-year or 5-year prepay for better rates

Who Should Use a DSCR Loan?

DSCR loans are tailored for real estate investors who want simplicity and speed. Ideal candidates include:

• Self-Employed Investors – Avoid the complexity of documenting fluctuating business income.
• Foreign Nationals – Non-U.S. citizens can often qualify based on property performance alone.
• Retired or Passive Income Borrowers – You don’t need traditional income to qualify.
• Airbnb/Short-Term Rental Hosts – Use short-term rental revenue to qualify with proof of income.
• LLC Investors – Loans can be placed in an entity for asset protection and tax planning.

If your goal is to build long-term wealth through real estate, a DSCR loan is a tool that removes the common roadblocks of conventional financing.

DSCR Loan Calculation Example

Let’s say you’re looking to purchase a rental property with:

• Gross Rent: $2,500/month
• Estimated PITIA: $2,000/month

The DSCR = $2,500 ÷ $2,000 = 1.25
This is above the 1.00 threshold and would qualify with ease. If DSCR is slightly below 1.00, we may still qualify you with other strengths, such as a high credit score or liquidity reserves.

The Ferrari Lending DSCR Loan Process

1. Loan Scenario Review
   Send us the property address, expected rent, purchase price, and credit estimate.
2. Pre-Approval Within 24 Hours
   We issue a loan estimate and match your file with the right investor program.
3. Appraisal and Rent Schedule
   A standard appraisal and Form 1007 (market rent schedule) are ordered.
4. Lease Review or Rental History
   Provide a lease agreement or Airbnb income summary for income validation.
5. Underwriting & Final Conditions
   We assist in satisfying final lender conditions—usually simple due to limited doc requirements.
6. Closing
   Once cleared, we move to closing, typically within 10–14 business days.

Why Work with Ferrari Lending?

As a mortgage broker licensed in over 45 U.S. states, Ferrari Lending offers nationwide access to investor-friendly financing. We work with multiple DSCR lenders to find the best pricing, fastest turn times, and most flexible terms available based on your unique situation.

📍 Not sure if your state is approved?
Contact us and we’ll confirm if your location is eligible for DSCR financing through our network.

Let’s Talk About Your Next Investment

If you’re an investor looking to finance a new property, refinance your portfolio, or extract equity without the red tape, a DSCR loan through Ferrari Lending is the solution.

📞 Call: (561) 571-2552