Quick Answer
NO! DSCR loans do NOT require tax returns. No 1040s, Schedule E, W-2s, pay stubs, or income verification needed. You qualify based solely on the property's rental income. This makes DSCR loans perfect for self-employed borrowers, business owners, and anyone who doesn't want to share tax returns with lenders.
Do DSCR Loans Require Tax Returns?
NO TAX RETURNS REQUIRED
This is the #1 benefit of DSCR loans. Zero tax documentation needed.
- • Personal tax returns (1040)
- • Business tax returns
- • Schedule E (rental income)
- • W-2 forms
- • Pay stubs
- • 1099 forms
- • Government-issued ID
- • Credit check authorization
- • Property address
- • Rent amount/lease
- • Down payment proof
- • That's it!
Why DSCR Loans Don't Need Tax Returns
Traditional mortgages qualify you based on your personal income (proven through tax returns). DSCR loans qualify you based on the property's income (proven through rent analysis).
Traditional Mortgage Logic:
DSCR Loan Logic:
Who Benefits Most?
Self-Employed with High Write-Offs
You make $200K but tax returns show $50K after business deductions. DSCR loan doesn't care - only property income matters.
Multiple Business Entities
Income spread across 3 LLCs and S-corps. Too complex for traditional underwriters. DSCR simplifies everything.
Privacy-Focused Investors
You don't want lenders seeing your personal or business finances. DSCR respects your privacy.
Recent Income Changes
Switched from W-2 to 1099 recently. Traditional lenders want 2 years history. DSCR doesn't care.
Real Estate Professionals
Commission-based income varies monthly. Hard to show "stable" income. Property income is stable.
Complete Documentation List
NOT Required
- ✗ Personal tax returns (1040)
- ✗ Business tax returns (1065, 1120, 1120S)
- ✗ Schedule E (rental income schedule)
- ✗ W-2 forms
- ✗ Pay stubs
- ✗ Employment verification letter
- ✗ 1099 forms
- ✗ Bank statements
- ✗ Profit & loss statements
- ✗ CPA letter
- ✗ Business financial statements
- ✗ Income verification of any kind
Actually Required
- ✓ Government-issued ID (license/passport)
- ✓ Credit check authorization
- ✓ Property address
- ✓ Purchase contract (if buying)
- ✓ Current lease (if refinancing)
- ✓ Market rent analysis (we can provide)
- ✓ Down payment bank statement
- ✓ Property insurance quote
That's it! 8 items vs. 20+ for traditional loans.
Real Example: No Tax Returns
- • Driver's license
- • Property at 123 Main St, LA
- • Current lease showing $4,000/month
- • $100K down payment proof
Common Questions
What if I WANT to show my tax returns for a better rate?
DSCR loans don't work that way. Rates are based on credit score, down payment, and DSCR ratio - not income. Showing tax returns won't improve your rate.
Will the lender ever ask for tax returns later?
No. DSCR loans are no-doc by design. The lender will never request tax returns during the process or after closing.
What if I have multiple rental properties?
Still no tax returns needed. Each property is evaluated independently based on its own rental income.
Do I need Schedule E to show existing rental income?
No. We use current leases or market rent analysis - not Schedule E from tax returns.
Get Approved Without Tax Returns
Apply today and skip the tax return hassle. Pre-approval in 24-48 hours with zero income documentation.