Frequently Asked Questions
Does a DSCR loan require me to show my income or tax returns?
Quick Answer: No. A DSCR loan qualifies the rental investment property on its own rental income â not your personal income. No W-2, tax return, Schedule C, or pay stub is required for income qualification. Your credit score and down payment are the primary personal factors.
What DSCR ratio do I need to get approved?
Most programs prefer a DSCR of 1.0 or above â meaning rental income covers 100% of the mortgage payment. Programs that accept DSCR below 1.0 exist with compensating factors: typically 700+ credit score and 30% or more down payment. No-ratio programs that skip the calculation entirely are available with 720+ credit and 35%+ down.
Can I use a DSCR loan for a property Iâll also live in?
No. DSCR loans are for investment properties â properties the borrower does not occupy as a primary residence. For a primary residence, a bank statement or 1099 loan is the appropriate Non-QM product. For a 2â4 unit property where the borrower occupies one unit, special programs exist â discuss with a Non-QM loan officer.
Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.
Mbanc NMLS #38232 | Equal Housing Opportunity Lender
About the Author
Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.
Contact: sales@mbanc.com | mbanc.com/non-qm-trades