Nationwide DSCR Mortgage Lender
DSCR Mortgage Lender Serving Investors Across the USA
Total Quality Lending (TQL) is a direct DSCR mortgage lender operating in 43 U.S. states. Real estate investors finance rentals on the property’s cash flow — not personal income — with loan amounts to $3.5M and 15-day closings.
A DSCR loan is an investment-property mortgage that qualifies on the rent the property produces versus its monthly PITIA — principal, interest, taxes, insurance, and HOA — with no W-2s, tax returns, or employment verification. Standard terms: up to 80% LTV, FICO from 640, loan amounts from $100K to $3.5M, non-owner-occupied only. Total Quality Lending (TQL) writes DSCR loans nationwide.
What is a DSCR loan?
A DSCR (Debt-Service Coverage Ratio) loan is a mortgage product for real estate investors that qualifies on the subject property’s rental income instead of the borrower’s personal income. The lender divides the property’s gross monthly rent by its monthly PITIA (principal, interest, taxes, insurance, and HOA) to get the DSCR. A ratio of 1.00 means the rent exactly covers the debt service; above 1.00 means the property cash flows.
Unlike a conventional Fannie Mae investor loan, DSCR underwriting does not look at W-2s, tax returns, pay stubs, employment letters, or debt-to-income (DTI) ratios. The file is approved on the strength of the property’s cash flow, the borrower’s FICO, the LTV, and reserves. That trade-off is why DSCR is the default option for self-employed investors, foreign nationals, and anyone scaling past Fannie Mae’s 10-financed-property cap.
DSCR loans are non-owner-occupied only — they cannot be used to buy or refinance a primary residence or a second home. They are a business-purpose product, written against the rental cash flow of an investment asset.
How DSCR loans work
From quote to keys, a DSCR file moves through four steps. None of them involve a tax-return transcript request.
1. Lender analyzes the property's market rent
Underwriting uses either the executed lease or an appraiser's 1007 market-rent schedule (and a 12-month STR average for Airbnb / VRBO properties). The borrower's W-2s, tax returns, and pay stubs are not requested.
2. Calculate the DSCR
Gross monthly rent is divided by PITIA — principal, interest, taxes, insurance, and any HOA. A DSCR of 1.00 means the rent equals the debt service. Total Quality Lending qualifies down to a 1.00 threshold and offers reduced LTV tiers for sub-1.00 properties that still cash flow with reserves.
3. Set LTV and pricing by FICO tier
Higher credit scores unlock higher LTV and better pricing. At 740+ FICO, purchase LTV runs up to 80%. At 640 FICO the cap drops and cash-out becomes unavailable until 660+. Reserves scale with loan size, typically 3–6 months of PITIA.
4. Close in 15 days
Because there are no employment verifications, tax-return transcripts, or DTI calculations to chase, TQL targets a 15-day close on DSCR files versus the 30–45 day industry average.
DSCR loan requirements
The qualifying parameters TQL uses on a standard DSCR file. State overlays in CT, FL, IL, NJ, and NY can reduce LTV.
Minimum FICO
640 for purchase and rate/term refinance. Cash-out refinance requires 660+.
Maximum LTV
Up to 80% on purchase at 740+ FICO. Rate/term refinance and cash-out scale down by FICO and loan size — see tier table below.
Minimum DSCR
1.00 standard. The DSCR < 1.00 reduced-LTV tier is also eligible (660+ FICO floor, lower maximum LTV per the matrix).
Reserves
Typically 3–6 months of PITIA in liquid reserves at close, scaling with loan size and FICO.
Occupancy
Investment / non-owner-occupied only. Owner-occupied homes are not eligible.
Loan amounts
$100K to $3.5M per property.
Eligible property types
SFR, 2–4 unit, condos (incl. non-warrantable), condotels, STR-zoned, rural up to 5 acres.
Vesting
Individual, LLC, LP, S-corp, or revocable trust. Personal guarantees required on entity vesting.
| FICO | Max purchase LTV | Notes |
|---|---|---|
| 740+ | 80% | to $2.5M · cash-out to 80% |
| 720 | 80% | to $1.5M · cash-out to 80% |
| 700 | 80% | to $1.5M · 70% to $3.5M |
| 660 | 75% | cash-out to 70% |
| 640 | 75% | to $1M · no cash-out |
DSCR loan benefits
What makes DSCR the workhorse product for U.S. real-estate investors.
- Qualify on the property’s rental cash flow — no personal income, W-2s, or tax returns
- Up to 80% LTV on purchase at the top tier (740 FICO); higher scores unlock higher LTV
- Credit scores from 640 — cash-out available at 660+
- Loan amounts from $100,000 to $3,500,000
- Short-term rentals (Airbnb, VRBO, FlipKey) eligible up to 80% LTV on purchase
- First-time investors eligible (restrictions apply)
Who DSCR loans are for
DSCR is the right product when the property cash flows but the borrower’s tax returns don’t tell the full story.
Rental-property investors
The core DSCR audience — buy-and-hold investors growing a long-term rental portfolio. Loans are written per property, so 10 doors can mean 10 separate DSCR files.
Self-employed and 1099 borrowers
Business owners whose tax returns understate true cash flow. DSCR removes personal income from the equation entirely, so write-offs don't hurt qualification.
Foreign nationals and visa holders
Non-U.S. citizens, ITIN borrowers, and H-1B / E-2 visa holders who can't qualify on U.S. tax returns. Eligible up to 75% LTV with international or No Credit Score paths.
First-time investors
Most national DSCR lenders require prior landlord experience. TQL doesn't. If the property's cash flow works, the deal works — purchase is your entry point.
LLC and entity-vested investors
Closing in the name of an LLC, LP, or revocable trust is standard on DSCR — recommended for liability separation and easier portfolio scaling.
Eligible property types
Standard 1–4 unit residential and condo collateral. Larger multifamily routes to a separate program.
- Single-family residences (attached and detached)
- 2–4 unit residential properties
- Condominiums (warrantable and non-warrantable)
- Townhomes and PUDs
- Condotels and condo-hotels
- Short-term-rental-zoned properties (Airbnb, VRBO, FlipKey)
- Rural properties up to 5 acres
Properties with 5–8 units route to Multi-Unit DSCR Loans — a separate program for larger residential and mixed-use multifamily.
DSCR loan scenarios
The most common DSCR file types Total Quality Lending closes each month.
Purchase
The most common DSCR scenario. Investor buys a non-owner-occupied rental and qualifies on the appraiser’s market-rent estimate or an executed lease. Down payment is 20% at the top FICO tier, 25% at lower tiers. Close in 15 days.
Rate/term refinance
Refinance an existing investor mortgage at a better rate or to swap from a bridge / hard-money loan into long-term DSCR financing. No cash out beyond closing costs and any escrow rollover.
Cash-out refinance
Pull equity from a stabilized rental to fund the next acquisition. Requires 660+ FICO; top tier reaches 80% LTV on loans up to $2.5M. See DSCR cash-out refinance for full guidelines.
Airbnb / short-term rental
STR properties qualify using a 12-month average of gross receipts from Airbnb, VRBO, or FlipKey statements (AirDNA acceptable for projection-only files). Up to 80% LTV on purchase. See Airbnb DSCR loans.
LLC / entity vesting
Close in the name of an LLC, LP, S-corp, or revocable trust for liability separation. Personal guarantees from the principals are required. See LLC mortgage for entity-vested DSCR specifics.
Foreign national
Non-U.S. citizens, ITIN borrowers, and visa holders qualify with international credit, alternate credit references, or No Credit Score paths. Up to 75% LTV. See Foreign National DSCR loans.
First-time investor
No prior landlord experience required. If the subject property’s cash flow works and FICO and reserves are in range, first-time investors close on the same terms as portfolio buyers.
DSCR loan pros and cons
A clear-eyed view. DSCR is the right tool for most investor files — but it’s not always the cheapest tool.
Pros
Speed
15-day target close — half the time of a conventional investor loan.
No personal income docs
No W-2s, no tax returns, no pay stubs, no employment verification.
Scalable
Each loan stands on its own property cash flow — no Fannie Mae 10-financed-property cap.
Short-term rentals eligible
Airbnb and VRBO income qualifies up to 80% LTV on purchase using a 12-month average.
Cons
Investment-only
Owner-occupied homes are not eligible — DSCR is strictly for non-owner investment property.
Rate premium vs. conforming
Pricing is typically 0.75–1.50% higher than a conventional Fannie Mae investor loan because the file isn't agency-eligible.
Possible prepayment penalty
Most DSCR loans carry a 3- or 5-year prepay (often step-down). State overlays in KS, MI, MN, MS, and NM prohibit prepay; ask before you lock.
Reserve requirement
Plan on 3–6 months of PITIA in liquid reserves at close. Cash-out can be used to satisfy this on refinance.
DSCR loans by state
Total Quality Lending writes DSCR loans across 43 U.S. states. The most-searched investor markets:
California DSCR loans, Texas DSCR loans, Florida DSCR loans, Arizona DSCR loans, Tennessee DSCR loans, Georgia DSCR loans, North Carolina DSCR loans, Colorado DSCR loans.
DSCR loans by U.S. region
Total Quality Lending operates in 43 states across every major U.S. investor region.
West Coast
- California
- Washington
- Oregon
- Arizona
- Nevada
- Colorado
- Idaho
Southwest & Mountain
- Texas
- New Mexico
- Utah
- Wyoming
- Montana
Southeast
- Florida
- Georgia
- North Carolina
- South Carolina
- Tennessee
- Alabama
Midwest
- Ohio
- Indiana
- Michigan
- Wisconsin
- Minnesota
- Missouri
- Iowa
- Kansas
Northeast & Mid-Atlantic
- Pennsylvania
- Virginia
- Maryland
- New Jersey
- Connecticut
- Massachusetts
Why investors nationwide choose Total Quality Lending
- Qualify on the property’s rental cash flow — no personal income, W-2s, or tax returns
- Up to 80% LTV on purchase at the top tier (740 FICO); higher scores unlock higher LTV
- Credit scores from 640 — cash-out available at 660+
- Loan amounts from $100,000 to $3,500,000
- Short-term rentals (Airbnb, VRBO, FlipKey) eligible up to 80% LTV on purchase
- First-time investors eligible (restrictions apply)
Related loan products
DSCR is one of several investor and non-QM programs at Total Quality Lending. Explore the other product hubs that may fit your scenario.
Foreign National DSCR
Investment property loans for non-U.S. citizens. Up to 75% LTV, 680+ credit or No Credit Score, loans to $1.5M.
DSCR 5–8 Units
Larger residential and mixed-use multifamily. Up to 75% LTV, loans $400K–$2M for experienced investors.
All Non-QM Programs (Prime Time)
Standard Doc and 6 alt-doc paths — bank statements, P&L, 1099, written VOE, asset utilization. Up to 90% LTV, loans to $4M.
Conventional Mortgages
Agency Fannie Mae and Freddie Mac loans. FICO from 620, down payments from 3%, up to the FHFA conforming limit.
Reviews and trust
Total Quality Lending holds a 4.9-star average across 500+ verified Google reviews from real estate investors and homeowners. Reviews are pulled directly from Google’s Business profile — no curation, no cherry-picking. The two themes that come up most often are close speed (15-day target on DSCR files) and communication (direct access to the underwriter). Read all reviews on the TQL reviews page →
U.S. DSCR mortgage lender — FAQs
Is Total Quality Lending a nationwide DSCR mortgage lender?
Yes. Total Quality Lending (TQL) is a DSCR mortgage lender licensed to operate in 43 U.S. states. NMLS #1933377, Total Quality Financial, Inc. DBA Total Quality Lending, California DFPI License No 60DBO-108369.
Which states have DSCR loans available?
DSCR loans are available in 43 states including California, Texas, Florida, Arizona, Tennessee, Georgia, North Carolina, Colorado, and most major investor markets. State-specific overlays apply in CT, FL, IL, NJ, and NY.
What is a DSCR loan in the United States?
A DSCR (Debt-Service Coverage Ratio) loan is a U.S. mortgage product for real estate investors. The loan qualifies based on the property's rental income relative to its monthly debt service — not the borrower's personal income, tax returns, or employment. Standard for investor financing nationwide.
Can foreign nationals get a DSCR loan in the USA?
Yes. Total Quality Lending offers Foreign National DSCR loans in 43 states for non-U.S. citizens — no SSN required, ITIN accepted, no U.S. tax returns needed. Up to 75% LTV.
How long does a DSCR closing take in the US?
Total Quality Lending typically closes DSCR loans in 15–21 days. The industry average across most U.S. DSCR lenders is 30–45 days. In-house underwriting and direct funding drive the speed difference.
What credit score do I need for a DSCR loan?
Minimum FICO is 640. Higher scores unlock higher LTV and better pricing — 740+ qualifies for the top 80% LTV purchase tier and the lowest rate band. Cash-out refinance requires 660+. Foreign nationals can qualify with international credit or No Credit Score paths.
What is the minimum DSCR ratio?
TQL qualifies DSCR loans down to a 1.00 ratio (rent equals PITIA). Properties with a DSCR below 1.00 may still be eligible at reduced LTV with stronger compensating factors — additional reserves, higher FICO, or larger down payment.
Are DSCR loan rates higher than conventional?
Yes. DSCR pricing typically runs 0.75–1.50% above a comparable conventional Fannie Mae investor loan, because DSCR is a non-QM product that isn't agency-eligible. The trade-off is no income documentation, no DTI cap, and a higher financed-property limit.
Can I close a DSCR loan in an LLC?
Yes — and it's the most common vesting on DSCR. LLCs, LPs, S-corps, and revocable trusts are all permitted. Closing in an entity provides liability separation and simplifies scaling a rental portfolio. Personal guarantees from the principals are still required.
What is the maximum cash-out on a DSCR refinance?
TQL allows cash-out on DSCR refinances at 660+ FICO. At 740+ credit, cash-out LTV reaches 80% on loans up to $2.5M. There is no dollar-amount cap on cash proceeds — distributions are governed by the LTV tier and the property's appraised value.
How is short-term rental (Airbnb / VRBO) income calculated?
A 12-month trailing average of gross rental receipts is used (typically pulled from AirDNA, Airbnb / VRBO statements, or the platform host dashboard). STR properties qualify up to 80% LTV on purchase — no need for a long lease in hand to finance the next deal.
Which states have DSCR overlays?
Five states carry overlays on TQL's standard DSCR program: Connecticut, Florida, Illinois, New Jersey, and New York apply a declining-market cap of 75% LTV on purchase and 70% on refinance. Illinois and New York additionally exclude 2–4 unit DSCR. Several states (KS, MI, MN, MS, NM) prohibit prepayment penalties. Pennsylvania excludes Philadelphia County and Maryland excludes Baltimore City for investor occupancy.
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