How To Invest In Real Estate With No Income Or Employment Verification (Using DSCR Loans!)

Introduction to Real Estate Investing Without Income Verification

Welcome to our session on investing in real estate without the need for personal income or employment verification. This means you don’t have to show how much money you make from your job to invest. Today, we’ll explore using DSCR loans to start or grow your real estate investment portfolio.

What Are DSCR Loans?

DSCR stands for Debt Service Coverage Ratio. This is a type of loan where the money the property makes from things like rent should be enough to cover the loan payments. You don’t need to prove your personal income, which is great for people who work for themselves and can write off a lot of their taxes.

The Three Pillars of Qualifying for a DSCR Loan

There are three main things you need to qualify for a DSCR loan:

Pillar One: Income from the Property

The first pillar is all about the property’s income. This can be the actual rent it’s already making or the expected rent. There are two ways to show this: either through a current lease agreement or a form called the ‘107’, which is used to estimate how much rent the property could make.

Pillar Two: Credit Score

The second pillar is your credit score. Lenders usually look for a credit score of at least 620, but some may accept as low as 575. Your credit score helps determine how much money you need to put down and the terms of your loan.

Pillar Three: Down Payment and Loan-to-Value Ratio

The third pillar involves your down payment and the loan-to-value (LTV) ratio. Depending on your credit score, you might need to put down anywhere from 15% to 35%. The better your credit, the less you might need to put down.

Using DSCR Loans in the Real World

Let’s talk about some real examples of how people use DSCR loans:

Buying New Properties

One common use is to buy investment properties, like apartment buildings or houses, without needing to show personal income. This is handy for investors wanting to grow their property portfolio quickly.

Refinancing Existing Properties

Another use is refinancing properties to get better loan terms. For example, if you already own a property with a high-interest loan, a DSCR loan could offer a lower rate and better conditions.

Finding Properties for DSCR Loans

We can also look at properties that might qualify for DSCR loans. By logging into the MLS (a database of available properties), we can find homes that could be a good investment and fit the criteria for a DSCR loan.

How Real Estate Agents Can Use DSCR Loans

If you’re a real estate agent, DSCR loans can help you create more business opportunities. By understanding how these loans work, you can help clients find and finance properties more easily, even if they don’t have traditional proof of income.

Creating Content for Social Media

Sharing information about DSCR loans on social media can attract potential investors. You can post examples of properties that would make good investments with DSCR loans, helping draw interest from people looking to invest in real estate.


Today we’ve learned how DSCR loans can help you invest in real estate without needing to show income from a job. These loans focus on the income a property makes, not your personal income. This can be a great tool for growing your investment portfolio, especially if you’re self-employed or don’t have a steady job.

Ready to Start Investing?

If you’re interested in real estate investment or want to help your clients invest without traditional income verification, start exploring DSCR loans today. Check out more resources, reach out for advice, and take the first step towards your real estate investment journey!

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