DSCR loans let real estate investors in North Carolina and South Carolina qualify based on the property’s rental income — not personal W-2 or tax returns. If the property cash-flows, you can close.
What is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio. Lenders divide the property’s monthly rent by the total mortgage payment (PITIA). A ratio of 1.0 means rent exactly covers the payment. Most DSCR lenders want 1.0–1.25+.
Key Benefits
- No tax returns, W-2s, or pay stubs required
- Close in LLC or personal name
- Unlimited financed properties
- 20–25% down typical
- 30-year fixed or interest-only options
- Short-term rentals (Airbnb/VRBO) accepted with AirDNA/market rent
DSCR Loan Requirements
- Minimum credit score: 660 (680+ for best pricing)
- Down payment: 20–25%
- Property types: SFR, 2–4 unit, condo, townhome, short-term rental
- Reserves: 3–6 months PITIA
- Appraisal with Form 1007 rent schedule
Who Should Use a DSCR Loan?
- Self-employed investors with write-offs that reduce qualifying income
- Investors scaling past 10 financed properties (Fannie cap)
- Airbnb/STR operators in Charleston, Myrtle Beach, Asheville, Wilmington
- BRRRR investors refinancing out of hard money
NC & SC DSCR Markets We Serve
Charleston SC, Summerville SC, Mount Pleasant SC, Myrtle Beach SC, Greenville SC, Columbia SC, Charlotte NC, Raleigh NC, Asheville NC, Wilmington NC, Durham NC, Greensboro NC.
Use our DSCR Calculator to estimate your ratio and eligible loan amount. Ready to scale your rental portfolio? Call (843) 478-5223 or apply online.