Quick Answer
DSCR loans are perfect for self-employed borrowers because they require NO tax returns, W-2s, or income verification.You qualify based on the rental property's income, not your business income. This means tax write-offs and business expenses don't hurt you. 620 credit minimum, rates start at 5.99%, approval in 24-48 hours.
DSCR Loans for Self-Employed Borrowers
Why Self-Employed Struggle with Traditional Loans
The Self-Employed Problem:
You make $200K/year, but after business write-offs, your tax returns show only $50K net income. Traditional lenders see you as a $50K earner and deny your loan.
✗ Traditional lender: "You don't make enough money. Denied."
How DSCR Loans Solve This
The DSCR Solution:
DSCR lenders don't care about your tax returns. They only care if the rental property makes enough money to cover its own mortgage.
✓ DSCR lender: "Property cash flows. Approved at 5.99%."
Your business income, tax returns, and write-offs are irrelevant. Only the property's income matters.
Who Benefits Most from DSCR Loans
Business Owners
Write off everything legally possible. Tax returns show minimal income but you actually earn well.
Independent Contractors
1099 income that fluctuates. Traditional banks can't figure out your "real" income.
Real Estate Agents
Commission-based income varies wildly. Plus you write off car, phone, marketing, etc.
Freelancers/Consultants
Project-based work. Traditional lenders want "stable" income for 2+ years.
E-commerce Sellers
Amazon/Shopify sellers with lots of business expenses reducing taxable income.
Multiple LLCs
Income spread across multiple entities. Too complex for traditional underwriters.
Requirements for Self-Employed
✓ What You NEED:
- • 620+ credit score
- • 20-25% down payment
- • Investment property with rental income
- • DSCR of 1.0+ (rent covers mortgage)
- • Government-issued ID
✓ What You DON'T NEED:
- • Tax returns (personal or business)
- • W-2s or 1099s
- • Profit & loss statements
- • Business bank statements
- • Employment verification
- • Debt-to-income calculation
- • Explanation of business expenses
- • CPA letter or financial statements
Real Example: Business Owner Approval
DSCR vs Bank Statement Loans
Bank Statement Loan
DSCR Loan (Better)
Apply as Self-Employed
No tax returns, W-2s, or income verification. Get pre-approved in 24-48 hours based purely on property income.