Investor Loans — DSCR & Cash Flow Programs
Investor Financing Based on Property Cash Flow, Not Just Tax Returns
Programs designed for real-estate investors with multiple properties. Rental income and property cash flow review for borrowers whose tax returns show high write-offs that reduce qualifying income on paper.
- DSCR loans — qualify on rental income, not personal income
- No personal income or tax return requirement on select programs
- Single-family, multi-unit, and small commercial properties
- Investors with multiple financed properties
- Purchase and cash-out refinance options
Options Home Loans LLC offers DSCR investor mortgage loans in California for real estate investors. DSCR (Debt Service Coverage Ratio) loans qualify based on the rental income of the property, not the borrower's personal tax returns. This makes them ideal for investors with multiple properties or significant write-offs. NMLS #2221613.
The Tax Return Problem for Real Estate Investors
Real estate investors typically write off depreciation, mortgage interest, repairs, management fees, and other expenses against their rental income. This is sound tax strategy — but it creates a significant problem when applying for a traditional mortgage. After deductions, the net rental income shown on a tax return may be minimal or even negative, even when properties generate strong positive cash flow.
What Is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan qualifies the borrower based on the income-generating ability of the investment property itself — not the borrower's personal income or tax returns. The DSCR is calculated by dividing the property's gross rental income by its total monthly debt obligations. A DSCR of 1.0 means the property breaks even; above 1.0 means it generates positive cash flow.
No Personal Income Requirement
On DSCR programs, the lender does not review your W-2s, tax returns, or personal income documentation. Qualification is based entirely on the property's rental income relative to its debt obligations. This makes DSCR loans particularly well-suited for investors who have significant write-offs, multiple properties, or complex personal income situations.
Investors with Multiple Financed Properties
Conventional guidelines limit the number of financed properties a borrower can hold. DSCR and investor cash flow programs do not carry the same restrictions, making them a practical option for investors who are building a portfolio and have already reached conventional financing limits.
Eligible Property Types
DSCR and investor cash flow programs are available for single-family rental properties, 2–4 unit properties, condos, townhomes, and in some cases small multi-family and mixed-use properties. Short-term rental income (Airbnb, VRBO) may also be considered on select programs with appropriate documentation.
You May Qualify If…
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