How To Buy Rentals with NO Income Verification

Buy Rental Properties With No Income Verification

You can buy investment properties without proving your income — even if you're self-employed or your DTI is maxed out.
✅ No W2s
✅ No tax returns
✅ No income verification at all
💰 Instead, we look at one thing: can the rent cover the mortgage?

🏠 And here's the thing: you don't even need a renter yet.

  1. You write an offer on the property
  1. The appraiser provides a rent schedule showing what the property could rent for based on the local market
  1. That future market rent is what we use to qualify you
notion image
[splash teal]
📊
It's called a DSCR loan and it's how investors are buying rental properties without ever proving their income.

How The DSCR Ratio Works

DSCR stands for Debt Service Coverage Ratio. The math is simple:

Gross Rent ÷ Mortgage Payment = DSCR

$3,000$2,447=1.22\frac{\$3{,}000}{\color{red}\$2{,}447} = {\color{green}1.22}
  • PITIA = Principal, Interest, Taxes, Insurance, Association dues
DSCR Ratio
What It Means
Above 1.0
Property cash flows, and you get better pricing
1.0
Rent exactly covers the payment
0.75 to 1.0
Still eligible, but expect higher rates
Below 0.75 or no ratio
Some lenders still allow it, with trade-offs

Basic Requirements

Credit

Credit Score
What To Expect
620
Minimum score
680+
Recommended, especially for first-time investors
Higher scores
Better rates
  • Credit is based on personal credit history, even if closing in a business entity

Property Types

✅ Single-family homes
✅ 2-4 unit properties
✅ Condos
✅ Short-term rentals (Airbnb/VRBO)
❌ Owner-occupied (no house hacking)
❌ Primary residences or second homes

Other Eligibility

  • Must have an established primary residence for the past 12 months (cannot live rent-free)
  • First-time investors are allowed
  • First-time homebuyers are allowed (as long as the DSCR property is investment)

Who Is This For?

🏗️ Self-employed: Your tax returns show deductions, not your real income. DSCR doesn't care.
💼 W2 earners with side rentals: Already maxing out your DTI? DSCR has no DTI calculation.
🏘️ Full-time investors: No limit on how many DSCR properties you can have.
🏢 LLC and entity buyers: Close in an LLC, Trust, or Corporation. Credit is still based on your personal score.
🌴 Short-term rental investors: Airbnb and VRBO properties qualify with the right documentation.

Pros & Cons

Pros
Cons
🚫 No income or employment verification
📈 Higher interest rates (1-2% more than conventional)
⚡ Fast, simplified process
💰 Larger down payments (20%-30%)
♾️ No limit on property count
🏠 Investment properties only (no owner-occupied)
🏢 Close in LLC, Trust, or Corporation
⏳ Often has prepayment penalties
📊 No DTI calculation
🌴 Short-term rentals eligible

🏡 Ready To Get Started?

Our team helps investors in 49 states get pre-approved
[states legend:off]
all
- New York
💳 Soft credit pull: Get pre-approved without impacting your credit score
🏘️ No property limit: Scale your portfolio without income constraints
⚡ Simplified process: No chasing down tax returns or pay stubs
👉 Get pre-approved today: winthehouseyoulove.com/dscr

Financial Requirements

Down Payment

Scenario
Down Payment
Sweet spot (with prepayment penalty)
30% down (70% LTV)
High credit scores
As low as 20% down

Example Home

notion image
 
🔎 $205,000 in Dayton, OH
  • 1,441/mo Rent Zestimate
  • $1,335/mo PITIA
  • 1.08 DSCR ✅

Reserves

  • 3-6 months of mortgage payments required in liquid assets
  • Example if 3 mo reserves is required:
  • $200k house | $1,500/mo PITIA
Reserves:
$1,500×3=$4,500\$1{,}500 \times 3 = \$4{,}500
Funds Needed for 20% Down:
Down Payment$40,000Closing Costs$5,000Reserves+ $4,500Funds Needed$49,500\begin{array}{lr} \text{Down Payment} & \$40{,}000 \\ \text{Closing Costs} & \$5{,}000 \\ \text{Reserves} & + \ \$4{,}500 \\ \hline \text{Funds Needed} & \$49{,}500 \end{array}

Gift Funds

  • Gifts are allowed for the down payment and closing costs
  • Gifts are not allowed for reserves (those must be your own funds)

Loan Features

Term Options

Option
Details
30-year fixed
Standard amortization
40-year fixed
Lower monthly payment
Interest-only
10 years IO, then 30-year fixed amortization

Short-Term Rental Income

If you're buying an Airbnb or vacation rental, lenders can qualify income using:
📊 AirDNA report: Market rental data for STR properties
📋 STR 1007 appraisal: Appraiser estimates short-term rental income
📈 12-month earning history: If the property already has STR income on the books

Closing In An Entity

  • Close in an LLC, Trust, or Corporation
  • Personal credit still applies
  • Great for asset protection and portfolio organization

Seller Concessions

  • Sellers can contribute up to 6% toward your closing costs

🏡 Get Pre-Approved With Our Team

We help investors in 49 states build their portfolios with the right loan.
💳 Soft credit pull
🏘️ No property limit
⚡ Fast turnaround
👉 Start at winthehouseyoulove.com/dscr