Business-purpose loan program

DSCR Rental Loans for New Jersey Investors

A DSCR loan qualifies on the property's rental income instead of your personal income, so you can buy or refinance rentals in your LLC without tax returns or pay stubs.

Get a loan quote Call 609-488-6300

What is a DSCR loan?

DSCR stands for debt service coverage ratio. For a rental loan to be approved, the property's rent has to cover its monthly payment: principal, interest, taxes, insurance and any association dues (PITIA). Lenders divide the rent by that payment, and the result is the DSCR. There's no requirement to submit pay stubs, W-2s or tax returns.

Who it's for

Investors who buy and hold, self-employed borrowers whose tax returns show heavy write-offs, and anyone scaling past the limits of conventional financing. Each property qualifies on its own cash flow, so the fifth or fifteenth rental doesn't depend on your debt-to-income ratio.

Ways to use it

New purchases, rate-and-term refinances, cash-out refinances, and BRRRR refinances out of a fix and flip or bridge loan. It works for single-family homes, 2–4 unit properties, townhomes and condos, short-term rentals, and portfolio loans that combine several rentals.

Program terms

We publish only confirmed terms. Pricing depends on your credit, experience, leverage and the property, so ask a loan officer for current terms.

Term / amortization	[CONFIRM: DSCR term and amortization (current site: 30-year fixed)]
Minimum credit score	[CONFIRM: DSCR minimum FICO (current site shows both 680 and 650)]
Maximum LTV, purchase	[CONFIRM: DSCR max LTV purchase (current site shows both 80% and 75%)]
Maximum LTV, cash-out	[CONFIRM: DSCR max LTV cash-out]
Minimum DSCR	[CONFIRM: DSCR minimum ratio (current site: rent at least 120% of PITIA)]
Loan amount range	[CONFIRM: DSCR min/max loan amount]
Minimum property value	[CONFIRM: DSCR minimum property value (current site: $100,000)]
Eligible units	[CONFIRM: DSCR eligible unit counts (current site: single-family and 2–9 units)]
Prepayment	[CONFIRM: DSCR prepayment structure (current site: declining)]
Recourse	[CONFIRM: DSCR recourse / non-recourse options]

What you'll need

One-page application
Executed lease, or market rent from the appraisal if vacant
Purchase contract or current settlement statement
Two months of bank statements for reserves
LLC certificate of formation, operating agreement, EIN letter and certificate of standing
W-9 for the entity and government ID for each guarantor
Proof of hazard insurance, plus flood insurance if required

Quick DSCR calculator

Estimate a property's debt service coverage ratio. This is an illustration, not a quote, and every lender sets its own minimum.

New Jersey notes

Before closing on a New Jersey rental, plan for the landlord registration statement, the town's certificate of occupancy or rental inspection, and lead-safe certification for many pre-1978 units. Many DSCR loans carry a prepayment schedule, and New Jersey treats business-purpose loans to entities differently from residential loans to individuals. That's one reason investors close in an LLC. Ask your attorney how it applies to your deal.

For more detail, read our guide: How DSCR Loans Work in New Jersey: A Plain-English Guide for Rental Investors.

DSCR Loans across New Jersey

We make DSCR loans in all 21 counties. Choose a county to see local considerations.

Local markets

DSCR Loans: frequently asked questions

Do I need tax returns or pay stubs for a DSCR loan?

No. DSCR loans don't use personal income documentation. The lender reviews the property's lease or market rent, your credit, your reserves and your LLC documents.

Can I close a DSCR loan in my LLC?

Yes. DSCR loans are made to business entities such as LLCs. Members usually sign a personal guarantee.

Do you lend on short-term rentals?

Yes, subject to the program and the town's short-term rental rules. Some programs use the appraiser's long-term market rent, and others can consider short-term rental income with supporting history.

What's the difference between a DSCR loan and a conventional loan?

A DSCR loan qualifies on the property's cash flow and your credit, with less documentation. A conventional loan follows Fannie Mae and Freddie Mac rules, uses your personal income and debt-to-income ratio, and is usually made to an individual. Conventional loans can cost less if you qualify, while DSCR loans are easier to scale in an entity.

Can I refinance out of a hard money loan with a DSCR loan?

Yes. That's the refinance step in BRRRR. Once the property is renovated and leased, a DSCR loan can pay off the short-term loan. Ask about seasoning requirements for cash-out refinances.

Ready to talk about a deal?

Send the basics on a property and a loan officer will follow up. You'll hear back from a person, not a call center.

Start your application Call 609-488-6300