Finance Rentals on Cash Flow — Not Personal Tax Returns
Phoenix · Scottsdale · Tucson · and statewide · no credit impact to start the conversation
Understanding Debt Service Coverage Ratio (DSCR) loans
A Debt Service Coverage Ratio (DSCR) loan is a business-purpose loan for a rental property. Lenders look at whether the rent covers the payment — usually gross rents divided by principal, interest, taxes, insurance, and association dues (PITIA) — instead of your personal W-2 income and debt-to-income (DTI) ratio. It is built for Arizona investors buying or refinancing 1–4 unit rentals, not primary residences.
If you own or are buying a rental in Phoenix, Scottsdale, Tucson, or elsewhere in Arizona, a conventional investment mortgage often still wants your personal tax returns, W-2s, and a debt-to-income ratio that treats you like a homeowner — even when the property itself covers the payment.
A Debt Service Coverage Ratio (DSCR) mortgage flips that. Underwriters look at whether the rental’s rent supports the loan payment. That can matter when you are self-employed, own several rentals, write off a lot on taxes, or simply do not want to show personal job income on a business-purpose investment loan.
Mortgage Brothers LLC is a Phoenix-based brokerage. We match Arizona investors to DSCR programs — including long-term rental (LTR) and short-term rental (STR) paths — and explain the guideline tables in plain English before anyone dumps product codes on you.
Approval centers on rental income versus the property payment. Fully amortizing loans use gross rents ÷ principal, interest, taxes, insurance, and association dues (PITIA). Interest-only options use gross rents ÷ interest, taxes, insurance, and association dues (ITIA). Your job income is usually not used to qualify on these business-purpose programs.
Separate guideline bands exist for traditional leases and short-term stays. Short-term rental (STR) tables usually allow a bit less loan-to-value (LTV) than long-term rental (LTR) tables at the same loan size. We map your Phoenix or vacation-market scenario to the right table before you lock an offer plan.
Use a Debt Service Coverage Ratio (DSCR) loan to buy a new rental, refinance an existing investment mortgage, or take business-purpose cash out when the property and credit support it. Loan amounts commonly start around $100,000 and reach up to published table maximums (including rows up to $2,000,000 on strong credit).
Common structures include 30-year fixed fully amortizing loans plus interest-only fixed and adjustable-rate mortgage (ARM) options (such as 5/6, 7/6, and 10/6). That helps cash-flow-focused investors match the payment shape to how long they plan to hold.
Debt Service Coverage Ratio (DSCR) programs differ on minimum ratio bands, credit score (FICO) floors, cash reserves, and short-term rental (STR) paperwork. As independent brokers, we compare investor guidelines and match your Arizona rental to a fit — instead of forcing one in-house product.
Debt Service Coverage Ratio (DSCR) calculator
Enter monthly rent and payment pieces to see a simple DSCR estimate. Fully amortizing loans divide rent by PITIA. Interest-only loans divide rent by ITIA. This is an educational tool — not an approval.
Interactive tool
Educational estimate only. Not an approval, rate quote, or loan commitment. Actual Debt Service Coverage Ratio (DSCR) uses lender-accepted rents, paperwork (leases, market rents, or short-term rental (STR) reports as applicable), and the investor guideline table for your file. Figures can change; talk to a Mortgage Brothers broker before relying on any number.
Ready to move from estimate to a real file?
Start my preapprovalWho this fits
DSCR loans are for investors financing 1–4 unit investment properties for business purposes — long-term leases or short-term rentals — who want approval tied to property cash flow rather than personal W-2 debt-to-income (DTI).
Investment use only. Eligible property types commonly include 1–4 unit residential rentals. Primary residences and second homes are outside this product’s purpose — the loan is certified as business-purpose.
Experienced landlords and first-time investors may both be eligible. First-time investor credit floors often start around a 680 Fair Isaac credit score (FICO). Some DSCR programs publish foreign-national rows on long-term rental (LTR) tables with a ratio of 1.00 or higher — paperwork differs.
Minimum loan amounts are often around $100,000. Purchase, rate-and-term refinance, and cash-out refinance are available when the guideline table and cash-out rules allow. Cash-out proceeds must be used for a business purpose under these guides.
Loans are reviewed by people, not just a computer. Cash reserves are commonly required (for example, about 6 months of PITIA on many loans of $1 million or less). Exact credit score (FICO), loan-to-value (LTV), and reserve rules follow the investor table for your DSCR band.
These are investment / business-purpose loans. Many business-purpose DSCR loans sit outside some consumer mortgage rules (ability-to-repay, qualified mortgage, and higher-priced loan protections) — that depends on the program; this is not legal advice. We will not overclaim consumer protections that do not apply; ask us what disclosures and certifications your file needs.
Guideline highlights
On common long-term rental (LTR) bands with a DSCR of 1.00 or higher, purchase and rate-and-term rows can reach up to $2,000,000 at stronger credit score (FICO) and lower LTV combinations. Short-term rental (STR) and lower-ratio bands exist with tighter leverage. All figures are “up to,” not guarantees.
How to read this: The primary table is long-term rental (LTR) with a DSCR of 1.00 or higher. Full STR tables follow for DSCR ≥ 1.00 and lower-ratio STR bands.
| Transaction | Up to loan amount | Min FICO (illustrative) | Up to LTV / CLTV |
|---|---|---|---|
| Purchase / R&T | Up to $2,000,000 | 740 | 70% |
| Purchase / R&T | Up to $1,500,000 | 720 | 80% |
| Purchase / R&T | Up to $1,000,000 | 720 | 85% |
| Purchase / R&T | Up to $1,000,000 | 660 | 75% |
| Purchase / R&T | Up to $1,000,000 | Foreign national | 70% |
| Cash-out | Up to $1,500,000 | 720 | 65% |
| Cash-out | Up to $1,000,000 | 720 / 700 / 680 | 75% / 70% / 60% |
1–4 units. First-time investor minimum credit score often 680. Condos/condotels and cash-out can carry additional LTV caps. Source: published investor STR / LTR tables as of August 2026 investor summaries — verify with the investor before publish.
| Transaction | Up to loan amount | Min FICO (illustrative) | Up to LTV / CLTV |
|---|---|---|---|
| Purchase / Rate & Term | Up to $2,000,000 | 740 | 65% |
| Purchase / Rate & Term | Up to $1,500,000 | 720 | 75% |
| Purchase / Rate & Term | Up to $1,000,000 | 720 | 80% |
| Purchase / Rate & Term | Up to $1,000,000 | 660 | 70% |
| Cash-out | Up to $1,500,000 | 720 | 60% |
| Cash-out | Up to $1,000,000 | 720 | 70% |
| Cash-out | Up to $1,000,000 | 700 | 65% |
| Cash-out | Up to $1,000,000 | 680 | 55% |
Published investor STR table. First-time investor min FICO often 680. Subject to change — verify with the investor before publish.
| Transaction | Up to loan amount | Min FICO (illustrative) | Up to LTV / CLTV |
|---|---|---|---|
| Purchase / R&T | Up to $2,000,000 | 740 | 55% |
| Purchase / R&T | Up to $1,500,000 | 720 | 65% |
| Purchase / R&T | Up to $1,000,000 | 720 | 70% |
| Cash-out | Up to $1,500,000 | 720 | 50% |
| Cash-out | Up to $1,000,000 | 720 | 60% |
Published investor STR table for lower DSCR bands. Leverage is typically tighter than the ≥1.00 STR table. Verify with the investor before publish.
Some DSCR programs set a 1.00 minimum ratio. A limited path around 0.80 DSCR may exist on purchase/rate-and-term when credit, LTV, reserves, and mortgage history overlays are met — we map that only when it fits your file. No rates quoted.
Conventional investment loans typically approve you on personal income and DTI using tax returns and job paperwork. A DSCR loan looks mainly at the rental’s cash flow versus PITIA — or ITIA on interest-only.
Personal DTI, W-2s/tax returns, and often tighter limits on how many financed properties you can hold. Strong fit when your personal income story is straightforward.
Business-purpose approval on rents ÷ payment. Job income is usually not used to qualify. Guideline tables price leverage off FICO, LTV, and DSCR band instead of consumer DTI grids.
A DSCR loan still needs leases, rent evidence, appraisals, credit, cash/reserves, and entity docs when applicable — it is not “no docs,” just a different income lens.
Self-employed write-offs, multiple rentals, STR income, or foreign-national scenarios often deserve a side-by-side before you assume conventional is cheaper or DSCR is automatic.
Compare options
Hard money is usually short-term capital for buying or fixing up a property. A DSCR loan is longer-term investment financing for a cash-flowing Arizona rental once the property can support a lasting payment.
Short timeline tool for flips, rehabs, or properties that do not yet cash-flow to a DSCR band.
Longer-term purchase, refinance, or cash-out structured around rents for landlords who plan to hold.
Many Arizona investors use short-term capital first, then refinance into a DSCR loan once rents stabilize.
Want the full hard-money vs DSCR story? Read our deeper guide: DSCR as an alternative to hard money.
See a fit in the tables? Start a DSCR preapproval.
Start my preapprovalThe process
You share the property and rent picture. We estimate the DSCR and map the guideline table, then shop investor programs and manually underwrite a full business-purpose file through closing.
Tell us city, unit count, purchase vs refinance, long-term vs short-term use, and rough rent or booking history.
We estimate rents ÷ PITIA — or ITIA on interest-only — and flag whether you are in a common ≥1.00 band or a program-specific lower band.
Credit, leverage, and reserve months determine which guideline-table row is realistic — including first-time investor floors.
As brokers, Mortgage Brothers compares DSCR investors rather than forcing a single portfolio product.
Expect a thorough business-purpose file: appraisal, rent docs, credit, cash/reserves, entity paperwork when needed — not an automated consumer shortcut.
Fund the purchase or refinance and run the rental under the term structure you chose (fixed or interest-only).
Ready for the next step? Start a preapproval — soft pull only when you ask us to.
Start my preapprovalWhy Mortgage Brothers
Mortgage Brothers LLC is an independent Phoenix brokerage. We help Arizona investors compare DSCR programs, LTR vs STR paths, and takeouts from hard money — in plain language, with licenses and Equal Housing Opportunity standards on every file.
We match your rental to investor guidelines instead of selling one in-house DSCR product.
Separate tables, paperwork, and leverage rules — we say which table applies before you bid.
Phoenix-based team familiar with Valley and statewide rental markets, HOAs, and investor entities.
DSCR vs conventional vs hard money — so you pick the tool that fits how long you plan to hold.
Frequently asked questions
Questions answered? Start my preapproval when you are ready.
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