Qualify on the property
Underwriting compares rent to the full PITIA payment. No tax returns, W-2s or pay stubs. Assets are verified for down payment, closing costs and reserves.
DSCR Loan Program
DSCR Loans for Investors: Qualify on Rent, Close in Your LLC
Finance rental properties based on the property's cash flow, not your personal income. No tax returns or W-2s. Buy, refinance or cash out, with title held in your LLC.
- $125K–$3MLoan amounts
- Up to 85% LTVBased on DSCR tier
- 1.25 · 1.00 · <1.00DSCR options
- LLC VestingNew LLCs generally OK
The Basics
What Is a DSCR Loan?
A DSCR (debt service coverage ratio) loan is a business-purpose mortgage for investment property that qualifies on the property's rental income instead of the borrower's personal income. The lender asks one question: does the rent cover the payment?
DSCR = Monthly Rent ÷ Monthly PITIA
- 1.25+Rent exceeds the payment by 25% or more. Strongest tier for leverage.
- 1.00Rent covers the full payment. Break-even cash flow.
- Below 1.00Rent covers less than the payment. Options may still be available; ask a loan officer.
Quick DSCR Check
Estimate a property's ratio in seconds.
1.25+ tier
Estimate only. Final DSCR is set by the appraiser's rent schedule and underwriting.
How It Works
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Why Investors Choose DSCR Financing
The property qualifies the loan. That makes DSCR the go-to for self-employed investors, portfolio builders and anyone whose tax returns don't show their real buying power.
Close in your LLC
The LLC takes title and signs the note. Members sign a personal guaranty and credit is pulled on the guarantors. Newly formed LLCs are generally accepted.
Buy, refi or cash out
Purchase, rate-and-term refinance or cash-out refinance. Pull equity from one rental to fund the next and keep the portfolio growing.
- Great for
- Rental property buyers
- Investment property refinances
- Portfolio investors
- Self-employed / complex income
- First-time investors*
- Realtors with investor clients
Programs
You're Here
DSCR Below 1.00
Up to 85% LTV
Seasoned Investors
TAG DSCR Programs
Four DSCR options, matched to your experience and how much leverage the deal needs. Open any program for full details.
DSCR Program
The core option. Qualify on rental income potential with streamlined documentation.
- Purchase, rate-and-term, cash-out
- No personal income documents
- LLC vesting
DSCR Investor Program
Leverage tied to your DSCR tier, including below-1.00 scenarios.
- $125,000 – $3,000,000
- DSCR 1.25, 1.00 or below 1.00
- First-time investor & foreign national options*
DSCR Investor Loan – 85% LTV
Higher leverage for eligible borrower and property scenarios, qualified on rental income and cash flow.
- Up to 85% LTV
- Rental income qualification
- Purchase and refinance
DSCR MAX
Built for seasoned investors seeking maximum leverage and portfolio growth.
- Purchase, refinance, cash-out
- Cash-flow qualification
- Portfolio expansion
*Availability varies by program, property and borrower profile. Confirm eligibility with a loan officer.
For Realtors & Referral Partners
Share the DSCR program with investor clients. Download the full program sheet or grab a co-branded version with your name and logo.
Closing in an LLC
How to Start an LLC in Florida for a DSCR Loan
DSCR loans are business-purpose loans, so most investors hold title in an LLC. Form it before you make an offer to avoid closing delays.
- Title vests in the LLC, not your personal name
- Rents, repairs and payments stay separate from personal finances
- Easier to add partners and scale a portfolio
- $125State filing fee
- SunbizFile online
- Jan 1–May 1Annual report
Fees as of October 2026; verify on Sunbiz. TAG is not a law or CPA firm. Reference only; ask an attorney about liability protection.
1Search your LLC name on Sunbiz
The name must be distinguishable and end in LLC, L.L.C. or Limited Liability Company. Search Sunbiz
2Appoint a Florida registered agent
Needs a physical Florida street address and must be available during business hours. You can be your own agent if you have a Florida address.
3File Articles of Organization ($125)
$100 filing fee plus $25 registered agent designation. List every member or manager who will sign loan documents. File on Sunbiz
4Get a free EIN from the IRS
Apply after Florida approves the LLC. Save the CP 575 letter; if it's lost, request a 147C verification letter. Apply at IRS.gov
5Sign an Operating Agreement
Not filed with the state, but DSCR lenders require it. It must set ownership percentages, signing authority and authority to borrow and pledge real estate.
6Open a business bank account
Open it in the LLC's name with the Articles, EIN letter and Operating Agreement. Keep statements showing any down payment funds moved into the LLC.
7File the annual report every year
Due Jan 1–May 1, starting the year after formation ($138.75). Missing May 1 adds a $400 late fee, and unfiled LLCs are administratively dissolved in September. A dissolved LLC can't close until it's reinstated.
Closing Checklist
Documents to Close a DSCR Loan in Your LLC
Have these ready before the closing is scheduled. Most investors finish LLC setup (steps 1–6) within a couple of weeks.
- Filed Articles of Organization
- Operating Agreement signed by all members
- EIN confirmation (CP 575 or 147C)
- Active Sunbiz status, verified near closing
- W-9 for the LLC, signed by a member
- Unexpired photo ID for each guarantor
- Borrowing resolution (multi-member LLCs)
- Personal guaranty, signed at closing
FAQ
DSCR Loan FAQs
What is a DSCR loan?
A business-purpose mortgage for investment property that qualifies on the property's rental income compared to its monthly payment (PITIA), instead of the borrower's personal income.
How is DSCR calculated?
Divide the monthly rent by the monthly PITIA payment. Example: $2,500 rent ÷ $2,000 PITIA = 1.25 DSCR. Lenders use the lease or the appraiser's market rent schedule.
Do I need tax returns for a DSCR loan?
No. Rent qualifies the loan, so tax returns, W-2s and pay stubs aren't required. You'll verify assets for down payment, closing costs and reserves.
Can I get a DSCR loan in a Florida LLC?
Yes. The LLC takes title and signs the note, and members sign a personal guaranty.
Can a brand-new LLC close a DSCR loan?
Usually, yes. Underwriting focuses on the property's rent and the guarantors' credit, not the LLC's history.
Can I buy in my name and move the property to an LLC later?
It's possible, but deeding a financed property can raise due-on-sale and title insurance issues. Closing in the LLC from the start avoids both. Talk to an attorney first.
How much does it cost to form a Florida LLC?
$125 in state fees to form, then $138.75 per year for the annual report, due between January 1 and May 1.
Do I need an attorney or CPA?
Not to file, but it's worth consulting one on the Operating Agreement, liability and tax. TAG Lending Group does not provide legal or tax advice.
Need Help Structuring a DSCR Loan?
Send us the property and the plan. We'll match the right program and map the LLC closing.
Business-purpose loans on non-owner-occupied investment property only. This page is general information, not legal, tax or accounting advice; consult an attorney or CPA. State fees and deadlines may change. Not a commitment to lend. Programs, LTV, loan amounts, DSCR tiers and eligibility vary and are subject to underwriting approval. TAG Lending Group, LLC | NMLS #2329372 | Equal Housing Opportunity.