What is the minimum DSCR ratio to qualify for a DSCR loan?

Most DSCR lenders require a minimum Debt Service Coverage Ratio of 1.0, meaning the property's monthly rental income must at least equal the monthly mortgage payment (PITIA). A DSCR of 1.25 or above typically unlocks the best rates and lowest down payment requirements. Some specialized programs allow ratios as low as 0.75 with a larger down payment (typically 30% or more) or strong compensating credit factors. Bonelli Financial Group works across the full DSCR spectrum and will match your deal to the right lender for your specific ratio.

Can I purchase a rental property in an LLC with a DSCR loan?

Yes. Most DSCR loan programs allow — and are specifically designed for — LLC or other entity titling. Investors can close in an LLC, trust, or other business entity to maintain liability protection for their portfolio. This is one of the key advantages of DSCR loans over conventional financing, which generally requires title to be held in an individual's name. Most programs require a personal guarantee from the managing member. Bonelli Financial Group has closed multiple DSCR deals in Mesa, Gilbert, Phoenix, Dallas, and other markets with LLC titling.

What credit score do I need for a DSCR loan?

Most DSCR loan programs have a minimum credit score requirement of 620. However, your credit score significantly affects your interest rate and terms. Borrowers with scores of 680 or above will qualify for meaningfully better rates, and those with 700 or above typically access the most competitive DSCR loan pricing available. A lower score does not automatically disqualify you — it may require a slightly larger down payment or result in a higher rate, but deals can still close.

Is there a limit on how many DSCR loans I can have at once?

No. Unlike conventional Fannie Mae and Freddie Mac loans, which cap most borrowers at 10 financed properties, DSCR loans have no portfolio limit. Each DSCR loan is evaluated on the individual property's cash flow, not your total number of financed properties. This makes DSCR loans the standard financing vehicle for active real estate investors scaling portfolios beyond 10 properties.

What states does Bonelli Financial Group offer DSCR loans in?

Bonelli Financial Group is a licensed mortgage broker offering DSCR loans in Arizona, California, Texas, Colorado, Idaho, Florida, Ohio, South Carolina, and New Mexico. The company is headquartered in Mesa, Arizona, with offices in Mesa and Prescott. Branch NMLS #2621584, Company NMLS #1211572.

What is the difference between a DSCR loan and a bank statement loan?

A bank statement loan qualifies you based on deposits in your personal or business bank accounts over the past 12 to 24 months — it is income-based but uses bank statements instead of tax returns. A DSCR loan qualifies you based entirely on the rental income the investment property generates — your personal income and deposits are not considered at all. For investment properties with strong rental income, DSCR loans are typically the faster and simpler option. Bank statement loans are often better suited for primary residence or second home purchases where no rental income is present.

Can I do a cash-out refinance with a DSCR loan?

Yes. DSCR cash-out refinances are one of the most common uses of this loan type. Investors pull equity from existing rental properties to fund the down payment on the next acquisition — without submitting income documentation. Most programs allow up to 75 to 80% LTV on cash-out refinances depending on credit score and DSCR ratio. Bonelli Financial Group has closed DSCR cash-out refinances in Texas, Arizona, and other markets for investors actively scaling their portfolios.

DSCR Loans for Real Estate Investors | Bonelli Financial Group

Q: Can I get a DSCR loan if I'm self-employed?

Yes — and self-employed investors are actually the ideal DSCR loan candidate. Because DSCR loans qualify you based entirely on the rental property's income rather than your personal tax returns, W-2s, or debt-to-income ratio, your business write-offs and complex income structure don't count against you. There is no personal income verification required. Bonelli Financial Group has closed DSCR loans for self-employed borrowers across Arizona, Texas, Florida, and six other states.

Q: Do DSCR loans work for Airbnb or short-term rentals?

Yes. Most DSCR lenders accept short-term rental income using a market rent analysis (Form 1007 or equivalent) rather than requiring an existing signed lease. This means you can qualify a vacant property or one listed on Airbnb or VRBO based on projected market rent. Bonelli Financial Group works with lenders who specialize in short-term rental properties across Arizona, Florida, Colorado, and South Carolina — including in markets like Scottsdale, Pensacola, and the Denver mountain corridor.

Q: How fast can a DSCR loan close?

DSCR loans typically close in 21 to 35 days from application. Because there is no personal income documentation to underwrite — no tax returns, W-2s, or employment verification — the process is significantly faster than conventional loans. The main variable is the appraisal, which averages 10 to 14 days in most Arizona markets. Bonelli Financial Group has closed DSCR loans in as few as 15 days for investors on tight contract deadlines.

A Debt Service Coverage Ratio loan qualifies you based on the income a rental property generates — not your personal W-2, tax returns, or debt-to-income ratio. Lenders look at one number: does the property's monthly rent cover the mortgage payment?

DSCR = Gross Monthly Rent ÷ Monthly Mortgage Payment (PITIA)

A DSCR of 1.0 means the rent exactly covers the payment. Most lenders approve at 1.0 or above. Some go as low as 0.75 with a larger down payment.

Example: A Mesa rental brings in $2,800/month. The mortgage PITIA is $2,200/month. DSCR = 1.27 — approved with strong terms.

Want to see this math on a real Arizona property? Our Tempe DSCR example walks through a 4-bedroom near ASU line by line, including why per-bedroom rents change the qualification.

Who DSCR loans are built for

• Self-employed investors with complex tax filings or significant write-offs

• Investors who've maxed out conventional loan limits (4–10 properties)

• LLCs and business entities buying rental properties

• Anyone who wants to close faster with less paperwork

• Short-term rental (Airbnb/VRBO) investors

Not sure if DSCR is right for you? Compare it to our bank statement loans or read our 2026 bank statement loan guide for self-employed buyers in Mesa & Gilbert.

Requirement Details

Minimum down payment ✓ 20–25% (varies by DSCR ratio and lender)

Minimum credit score ✓ 620+ (best rates at 700+)

DSCR ratio ✓ 1.0 minimum; 1.25+ for best pricing

Property types ✓ Single-family, 2–4 units, condos, STR

Mortgage insurance ✓ Not required

Income verification ✓ Not required — property income only

Max financed properties ✓ No limit

Loan amounts ✓ $100,000–$3.5M+

Closing timeline ✓ Typically 21–35 days

LLC titling ✓ Available with most programs

Conventional loans cap most borrowers at 10 financed properties and require full income documentation. DSCR loans remove both of those barriers — and in today's Arizona market, that matters.

Current DSCR loan rates range from approximately 6.0–7.5% depending on your credit score, DSCR ratio, and down payment. That's significantly improved from the 8–9% range investors faced in 2024, and it makes more deals pencil out.

• No income verification — the property qualifies you

• Close in 21–35 days — less documentation means faster timelines

• No property limit — use DSCR for every deal in your portfolio

• Works for LLCs — most programs allow entity-held title

• Short-term rental friendly — Airbnb and VRBO income counts

• Cash-out refinance available — pull equity to fund your next deal

State Why investors are active here

★ Home

Arizona

Our home market. Mesa, Gilbert, Chandler, Scottsdale, Phoenix, Tempe, Peoria, Surprise, Flagstaff.

California

High-value markets with strong long-term appreciation and rental income potential.

Texas

No state income tax, strong job growth, active investor markets across DFW, Austin, San Antonio, and Houston.

Colorado

Denver metro and mountain markets with strong short-term rental demand in ski and resort areas.

Idaho

Boise and surrounding areas experiencing rapid population growth and rising rental demand.

Florida

Top short-term rental markets including Orlando, Tampa, and Miami, plus strong long-term residential demand statewide.

Ohio

High-yield rental markets with lower entry prices and strong cash flow ratios ideal for DSCR qualification.

South Carolina

Coastal markets like Charleston and Myrtle Beach with strong vacation rental income and growing long-term demand.

New Mexico

Albuquerque and Santa Fe with improving investor fundamentals and lower competition than neighboring Arizona.

Arizona's East Valley is one of the strongest DSCR loan markets in the country right now. Here's why:

Mesa — Median home price around $448,000, with rental demand driven by healthcare, logistics, and ASU growth corridors. Strong rent-to-price ratios regularly produce DSCR above 1.0 at current rates.

Gilbert — Median around $575,000 with some of the highest household incomes in the Phoenix metro. Long-term rental demand is stable and short-term rentals perform exceptionally well near the Heritage District.

Chandler — Tech employment from Intel and other semiconductor employers drives strong long-term tenant demand. Mid-$400K price points with solid cash flow potential.

Scottsdale — Premium short-term rental market. Properties near Old Town and North Scottsdale generate some of the highest per-night rates in the state, making DSCR qualification straightforward with proper market rent analysis.

Tempe — University-adjacent rental demand is consistent year-round. Properties near ASU and the light rail corridor perform well for both long-term and short-term strategies.

We're based in Mesa. We know these markets. We've closed DSCR deals across the East Valley and can run a free preliminary DSCR analysis on any property you're considering. For detailed neighborhood-by-neighborhood analysis with real deal examples, see our Gilbert and Mesa market analysis with actual DSCR calculations at current rates.

Recent DSCR Deals We've Closed

AZ $1,160,000 Phoenix, AZ

Closed in 22 days

Rate-and-term refinance out of a hard money loan into a long-term DSCR. Investor needed to exit hard money before maturity — we moved fast, got them into permanent financing and locked in a stable monthly payment.

Refinance Hard money exit Jumbo DSCR

TX $220,000 Odessa, TX

Closed in 23 days

First-time investor purchase. Strong rental market in the Permian Basin made the numbers work — property income qualified the loan without a single pay stub or tax return submitted.

Purchase First-time investor No income docs

AZ $408,000 Phoenix, AZ

Closed in 15 days

First-time investor on a tight contract deadline. Fifteen days from application to close — our fastest DSCR deal to date. Qualified entirely on rental income, no personal income docs required.

Purchase First-time investor 15-day close

TX $285,000 Dallas, TX

Cash-out refinance

Investor pulled equity out of an existing Dallas rental to fund their next acquisition. No income verification — the property's cash flow qualified the refinance. Proceeds went straight into the next deal.

Cash-out refi Portfolio scaling No income docs

FL $350,000 Pensacola, FL

Purchase

Condo purchase in Pensacola. Many lenders won't touch condos for DSCR — we found the right program. Gulf Coast rental demand made the income numbers strong, and the deal closed without personal income documentation.

Purchase Condo Florida STR market

Loan examples shown are representative of actual closed transactions. Individual scenarios vary. Not a commitment to lend.
Bonelli Financial Group | Branch NMLS #2621584 | Licensed in AZ, CA, CO, FL, ID, NM, OH, SC, TX

Can I get a DSCR loan if I'm self-employed?

Yes — that's exactly what DSCR loans are designed for. Because qualification is based on the property's rental income rather than your personal income, your tax write-offs and business structure don't factor into approval.

Do DSCR loans work for Airbnb or short-term rentals?

Yes. Most lenders accept short-term rental income using a market rent analysis (Form 1007 or equivalent). We work with lenders who specialize in STR markets across Arizona, Florida, Colorado, and South Carolina.

What's the minimum DSCR to qualify?

Most lenders require 1.0 (break-even). Some allow as low as 0.75 with a larger down payment or stronger credit. We work with lenders across the full range — if your deal makes sense, there's usually a path.

Can I purchase in an LLC?

Yes. Most DSCR programs allow LLC or entity titling. This is one of the main reasons investors prefer DSCR — you can keep your portfolio in LLCs for liability protection without triggering conventional due-on-sale issues.

How is a DSCR loan different from a bank statement loan?

A bank statement loan qualifies you based on your personal or business deposits. A DSCR loan qualifies you based solely on the property's rental income — your deposits don't matter. For investment properties with solid rent, DSCR is almost always the faster and cleaner option.

How fast can a DSCR loan close?

Typically 21–35 days. With minimal income documentation to underwrite, the main variable is appraisal turnaround — which averages 10–14 days in most Arizona markets.

What credit score do I need?

Most programs start at 620. You'll get meaningfully better rates at 680+ and the best pricing at 700+. A lower score doesn't automatically disqualify you — it just affects your rate tier and may require a slightly larger down payment.

Can I use a DSCR loan to refinance?

Yes. Cash-out refinances are one of the most common uses. Investors pull equity from existing rentals to fund the next acquisition — all without income documentation. Rate-and-term refinances are also available.

Is there a limit on how many DSCR loans I can have?

No — unlike conventional financing, DSCR loans don't cap the number of financed properties. This makes them the standard vehicle for investors scaling beyond four to ten properties.

Do you lend in my state?

Bonelli Financial Group is licensed in Arizona, California, Texas, Colorado, Idaho, Florida, Ohio, South Carolina, and New Mexico. If your state isn't listed, contact us — we can often refer you to a trusted partner.

Travis Erickson | Licensed Mortgage Broker | NMLS #1193479

Travis Erickson is a Mesa-based mortgage broker with over 10 years in the lending industry and a specialty in DSCR, bank statement, and non-QM investment property loans. He started his career as a loan officer at Desert Financial Credit Union, built his way up to Vice President at AmeriSave Mortgage, and joined Bonelli Financial Group in 2024 to build a faster, more transparent mortgage experience for borrowers that traditional lenders often overlook.

His expertise in non-conforming and investor financing has been recognized nationally — including a citation in Bankrate's Non-Conforming Loans Guide, one of the most widely read mortgage resources in the country.

Travis has helped investors across Arizona, Texas, Florida, and six other states close DSCR deals that conventional lenders couldn't structure — often in under 30 days. He lives and works in Mesa, knows the East Valley market firsthand, and believes the best loan is the one that actually closes.

Learn more about Travis and the full Bonelli team on our Meet the Team page

Bonelli Financial Group | Branch NMLS #2621584 | Licensed in AZ, CA, CO, FL, ID, NM, OH, SC, TX

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