DSCR Loans
DSCR with Action Funding
At AFI Private Lenders, we offer DSCR loans (Debt Service Coverage Ratio loans) to help real estate investors qualify for financing based on rental income — not personal income. Whether you're acquiring a new rental property or refinancing an existing one, our DSCR loan program allows you to unlock funding based on the cash flow potential of the asset itself.
With minimal documentation and fast approvals, DSCR loans are ideal for landlords, property managers, and investors who want to expand their portfolios without traditional income verification. Let your property qualify for the loan — not your tax returns.
Why Choose A DSCR Loan
Unlike conventional mortgages, DSCR loans are based on the income-generating potential of the property — not your job history or W-2s. That means no complicated tax returns, no employment verifications, and no debt-to-income (DTI) ratios.
If your rental income can cover the property’s debt payments, you may qualify. This makes DSCR loans perfect for investors with multiple properties, self-employed borrowers, or anyone who earns income primarily from real estate.
How DSCR Loans Work
DSCR loans measure how well a property’s monthly rental income covers its monthly debt obligations. For example, a DSCR of 1.25x means the property earns 25% more income than the mortgage payment — a healthy buffer for lenders and a solid sign of a profitable investment.
Rather than verifying your personal income, AFI evaluates the rental income, market rents, and property expenses. The higher the DSCR, the better the terms you're likely to receive — but we also work with lower DSCRs on a case-by-case basis if you bring strong equity or reserves to the table.
Loan Features
DSCR vs Traditional
Why Choose Action Funding?
At Action Funding, we take pride in delivering a personalized approach to real estate investment financing. As a family-owned company, we focus on building genuine relationships with every client. When you partner with us, you’ll work directly with real people who understand your goals and provide expert guidance through each step of the loan process. Our mission is to make your investment experience smooth, transparent, and stress-free.
Action Funding offers fast, flexible, and transparent financing solutions designed specifically for real estate investors. From the beginning, you’ll receive a clear, upfront breakdown of all loan costs — with no surprises or hidden fees. Our team is dedicated to supporting you from application to closing and beyond. Ready to take advantage of new investment property opportunities? Action Funding is your trusted partner in turning your vision into reality. Contact us today for immediate support!
Frequently Asked Questions
A DSCR loan, or Debt Service Coverage Ratio loan, is a type of real estate investment loan that qualifies borrowers based on a property’s income rather than personal income. It’s ideal for investors who want to qualify using the property’s cash flow.
DSCR is calculated by dividing a property’s net operating income (NOI) by its annual debt obligations (principal and interest payments).
Most lenders look for a minimum DSCR of 1.0 to 1.25, meaning the property generates at least enough income to cover its debt payments. However, Action Funding offers flexible programs that can accommodate lower ratios depending on the deal.
Loan amounts depend on the property’s appraised value, cash flow, and your credit profile. Action Funding offers competitive loan sizes ranging from $100,000 to $5,000,000 depending on the deal.
We specialize in fast, efficient closings. Most DSCR loans close within 2–4 weeks, depending on the property and documentation required.