DSCR Loans

Add properties to your real estate portfolio with one of our DSCR loans. DSCR investment property loans are perfect for income producing properties of all types, rental properties, and short term rentals (STRs). And qualifying for DSCR loans from High West Lending are based on the property income, and not your personal income. 

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Maximize Your Real Estate Investments with DSCR Loans

Specializing in mountain west region including the states of Utah, Colorado, Idaho,  Wyoming, Montana, and Nevada. We also lend in Arizona, and even Texas. We offer DSCR Loans that center on your investment property’s income to qualify.

  • Understanding DSCR Loans

    DSCR loans, stand for “Debt Service Coverage Ratio.” This is a loan that is primarily based on a property’s cash flow rather than solely on the borrower’s personal income. This type of loan is specifically for real estate investors seeking loans based on rental income.

  • The Benefits of DSCR Loans for Real Estate Investors

    DSCR loans are designed to offer real estate investors an opportunity to grow their real estate portfolio one property at a time. Using the BRRRR method, many real estate investors are using hard money loans to purchase properties and then later refinance them with DSCR Loans. Then they just repeat the same process, and do it all over again.

  • DSCR Loans for Different Properties 

Every investment property has a different purpose, and a different life cycle in your real estate portfolio. No matter the property type or property use, we have a DSCR loan to match up with it. 

  • DSCR Income-Based Qualification

    Want to make sure you qualify for a loan on your investment property? Our process is straightforward and we can run the numbers with you quickly to determine if your property will qualify. 

Streamlining Your Path to DSCR Financing

Because everyone is so busy these days, applying for a loan can be a time consuming process. But getting approved for a DSCR loan from us is quick and painless, we promise! At High West Lending, we give your loan request the personalized attention required to get your loan across the finish line.

  • A Simplified DSCR Loan Application

    Our DSCR loan application process is straightforward and fast, the makings for a good experience. Providing you with a good experience in the application process is our #1 goal.

  • Custom DSCR Loan Structuring

    Because there are so many different types of DSCR loans out there, we use our lending expertise to match you with the right DSCR loan for your investment property.

  • Swift DSCR Loan Approval Process

    We run the numbers quickly to make sure you qualify for a DSCR loan. Our goal is to make the fastest decision possible. 

  • Transparent DSCR Lending Terms

    Loan pricing and terms are at the forefront of every borrower’s mind when getting a loan. We are transparent about all of our loan terms upfront, so there are no surprises. 

  • Personalized DSCR Financing Information

    At High West Lending we provide personalized, lending advice to make sure a DSCR loan is right for you.

Fast Funding

Because DSCR loans aren't the fastest funding loans out there, but we use our expertise to move the process forward quickly.

Licensed and Accredited

We are licensed and accredited to give you a feeling of trust when you bring us your loans.

Borrower First

We provide a lending experience that is second to none by putting our borrower's needs first. Read our reviews to hear it straight from our borrowers.

DSCR Loans Frequently Asked Questions

DSCR means, “Debt Service Coverage Ratio,” This is a  loan based on the rental income of an income producing property, rather than based on the borrower’s personal income to qualify. The lender determines if the property income is sufficient to cover the loan payment and other expenses. 

Obtaining a DSCR loan can be challenging or it can be easy. It depends if the property income is high enough to cover the property expenses and the loan payments. If the property income is not high enough to cover them, then one can still get a DSCR loan but the loan may require a higher down payment.

Downsides of a DSCR loan tend to be the higher interest rates as compared with a bank loan. Also, DSCR loans may have higher down payment requirements with lower credit scores.

DSCR loans typically require a down payment of between 10% to 35%. The size of the down payment that is required on a DSCR loan depends primarily on the property income less expenses, the property location, and the borrower credit score.

Yes, an LLC can get a DSCR loan. It is common to see real estate held in the name of a business entity such as an LLC. 

DSCR loans are for investment properties only, they are not intended for owner occupied properties. Even if other tenants occupy the property, it still may not be eligible for a DSCR loan if the property owner occupies one of the units. 

Yes, a first-time investor can qualify for a DSCR loan as long as some credit history is there, for example, previous auto loans, student loans, credit card accounts, or other revolving accounts that show some credit history.

A DSCR loan can be worth it for investors who want to acquire a portfolio (group) of income producing properties, such as rental properties, and hold them long term.  This is because DSCR loans come with longer terms of 30 years. 

Yes, a DSCR loan can be used for Airbnb properties, (AKA short term rental properties, AKA STR properties). These are properties that are rented out by the day, week, or month and advertised on various online platforms like Airbnb, Booking.com, FRBO, and others. The property income generated must meet the lender’s specific requirements because each DSCR lender is different.

DSCR loans are much easier to qualify for as compared to traditional loans like bank loans because they are based on the property income, not on your personal income. And if you have bad credit, some DSCR lenders do NOT require a min credit score to qualify. 

The time to process and close a DSCR loan varies, but it is not a fast closing loan. This means you should not rely on it for purchases that have to be completed in 1-2 weeks. If you need to close on a purchase quickly, a private money/hard money loan is much better choice. This is because it takes between 3-4 weeks on average to close a DSCR loan. Why such a slow closing timeframe on a DSCR loan as compared with a private money/hard money loan? This is because most DSCR lenders require an appraisal on every loan and appraisers usually take at least a week to  turn around an appraisal. Also, if there are problems with the appraisal, or updates are required by the lender, it can take 4-6 weeks to close on a DSCR loan

Borrowers are qualified based on the level of income generated by the property as compared with the property expenses and monthly loan payment. Most DSCR lenders prefer that a property has a debt service coverage ratio of 1 or higher than 1. 

A bad DSCR is a Debt Service Coverage ratio that is far below 1. A DSCR significantly below 1  indicates that the property’s income after expenses is not sufficient to cover the loan payment. This doesn’t mean that the property won’t be able to qualify for a DSCR loan, it just means the loan amount may be lower than what you want.

A good DSCR for a rental property is typically any number higher than 1. This means that the income from the property, after expenses, is sufficient to make the loan payment.

DSCR is usually calculated on a monthly basis, to be able to determine the monthly payment.

DSCR loans do go on a borrower’s credit, and can negatively affect a borrower’s credit score if there are late payments made. 

Yes, the DSCR does include taxes and insurance, and they are included as part of the monthly payment calculation. This means that you must include property taxes and insurance in the calculation of the monthly payment amount. This also means you do not take these same expenses out of your income when determining your net income. 

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