Finance on the property's income, not yours

DSCR loans qualify the property, not you personally. Independent validation that the investment math works, with closings in as few as 13 days.

See How It Works

85%

of investors use Lineage Lending

13 days

fastest time to close

$75K–$3M+

loan amounts

What is DSCR

The property qualifies itself

DSCR stands for Debt Service Coverage Ratio. Instead of proving your income with tax returns and pay stubs, the lender evaluates whether the property's rental income covers its debt payments. If the numbers work, you're approved.

Why smart investors choose DSCR

Our investors can qualify for traditional mortgages. They choose DSCR because it's faster, simpler, and provides something conventional loans don't: independent validation of the investment itself.

A conventional loan tells you the bank trusts your paycheck. A DSCR loan tells you the property's income covers its costs, which is what actually matters when you're building a rental portfolio.

Scales with your portfolio

Each property is evaluated on its own merits. Your fifth property is no harder to finance than your first. No stacking debt-to-income ratios, no submitting tax returns for every deal.

DSCR lending protects you, not just the lender

When a DSCR lender approves your loan, they're putting $150,000+ of their own capital behind the property. They don't make money from foreclosures. They make money by holding performing paper. So they underwrite aggressively: independent appraisal, rental income verification, expense analysis, and a cash flow test that confirms the property can service its own debt.

That's your canary in the coal mine. If a DSCR lender won't approve the deal, the numbers don't work, and you should walk.

Conventional mortgages don't do this. They underwrite you, your income, your credit, your debt-to-income ratio, but they don't underwrite the deal. An inexperienced loan officer can get you approved for a property that will never cash flow, as long as your personal finances can absorb the loss. DSCR won't let that happen.

Example: $175K property

Monthly rent$1,400

Annual rental income$16,800

Operating expenses$4,200

Net operating income$12,600

Annual debt service$10,080

DSCR Ratio1.25

This property generates $1.25 in net income for every $1 of debt. Most lenders approve at 1.0 or higher.

Illustrative example. Actual DSCR will depend on property financials and lender terms.

“Throughout the entire process, he made us feel genuinely taken care of and supported. Whenever something needed additional attention, he didn't hesitate to escalate it to his supervisor and kept us informed every step of the way.”

Rodney O.

Lineage Investor

Compare

DSCR vs. conventional mortgages

Both finance rental properties. They work very differently.

DSCR Loan

Qualifies the property

Qualifies onProperty's rental income

DocumentsLease, rent rolls, operating statements

Credit680+ typically

DTI ratioNot a factor

Multiple propertiesEach evaluated independently

Closing speed13 days with Lineage

Best forInvestors building a rental portfolio

Conventional Mortgage

Qualifies you personally

Qualifies onPersonal income, credit, DTI

DocumentsTax returns, W-2s, pay stubs, bank statements

Credit680+; better rates above 740

DTI ratioStrict 43% cap

Multiple propertiesHarder with each; debts stack

Closing speed30–45 days typical

Best forOwner-occupants with full documentation

Process

How Lineage lending works

Fast and transparent. Four steps from application to closing table.

Step 1

Pre-approval

Brief application. Credit check and investment profile review. Pre-qualification takes hours, not days.

Step 2

Property selection

Submit the property. We provide preliminary analysis and estimates before you commit.

Step 3

Underwriting

3–5 business days. Appraisal, title, rental income verification, final terms.

Step 4

Sign and fund. As few as 13 days from application to closing table.

Terms

Typical DSCR loan terms

Terms vary by property, profile, and market conditions.

Down Payment

20–25%

Some programs as low as 15% with strong DSCR.

Interest Rate

1–2 pts above conventional

Varies by credit, DSCR, down payment, market. Get a personalized quote during pre-qualification.

Loan Term

30yr fixed

Also 20yr and 15yr. All fixed, no ARMs.

Loan Amount

$75K–$3M+

Portfolio construction varies by situation.

Property Types

1–8 units

Single-family through small multifamily.

Prepayment

5-year declining

Standard structure is a 5-year declining prepayment penalty. This is how we secure better rates for you. Opt-out is available at a higher rate.

All rates, terms, and programs are illustrative. Actual rates depend on property, location, DSCR ratio, credit, down payment, and market conditions.

“Should I wait for rates to drop?”

You marry the property, you date the rate. If rates drop, you can refinance after your prepayment period or opt out of the penalty upfront at a slightly higher rate. Most investors take the lower rate and plan to hold. The investment starts generating returns from day one, and every month you wait is a month of cash flow, appreciation, and principal paydown you don't get back.

The math works at today's rates on every property in our inventory. If it didn't, we wouldn't list it.

Tax strategy

DSCR loans and tax benefits

Rental properties offer tax advantages that conventional financing doesn't address. DSCR loans align with how those benefits work, making it easier to scale your portfolio and layer in deductions property by property.

Depreciation is the big one: deduct a portion of the property's value each year, even as it appreciates. Mortgage interest, taxes, insurance, repairs, and management fees are all deductible on top of that.

A sophisticated investor might use DSCR to acquire multiple properties in a single year, each generating deductions. That strategy requires flexible financing. DSCR delivers it.

Read our tax strategy guide →

This is educational content, not tax advice. Consult your tax advisor.

Common deductions

Mortgage interest
Property taxes
Insurance premiums
Repairs and maintenance
Property management fees
Utilities (if landlord-paid)
Depreciation (non-cash)
Capital expenditures

FAQ

Common questions

Do I need excellent credit?

No. Most DSCR lenders work with 680+. Your credit affects rate and terms, but the property’s cash flow is the primary factor. If your credit is below 640, we can still discuss options.

What down payment do I need?

20–25% typical. Some programs allow 15% with a strong DSCR ratio and desirable location.

Can I finance multiple properties?

Yes. Each property is underwritten independently. Many investors build portfolios of 10+ properties with DSCR.

Do I have to use Lineage Lending?

No. Many investors use Lineage for everything else while financing through their own lender. 85% choose us, mostly for speed and integration.

Will my rate change?

No. All DSCR loans through Lineage are fixed-rate. 30-, 20-, or 15-year terms. No ARMs.

What if rental income drops?

Your payment stays the same, locked in at close. You cover any shortfall. This is why conservative projections matter at underwriting.

What if I already have a lender I trust?

That’s fine. We encourage you to compare terms, rates, and timelines. Closings in as few as 13 days through New American Funding, one of the most experienced DSCR lenders in the market.

Is there recourse to Lineage if something goes wrong?

No. Lineage is the servicer. New American Funding is the lender of record — the loan is between you and them.

Understand your financing before you buy

Get clarity on rates, terms, and what you qualify for — before you start evaluating properties.

Talk to an Investment Consultant