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- October 2, 2025
- News
For many real estate investors, the biggest limiter isn’t deal flow, it’s financing.
You spot a great SFR. The cash flow is solid. The fundamentals check out. But then the lender starts asking for tax returns, calculating DTI, and tying up the process in conventional red tape.
This is where so many promising deals fall through.
That’s why Encore Finance offers DSCR loans: to help borrowers finance based on the property’s income potential, not just personal credit metrics.
If you’re trying to scale a rental portfolio and running into walls, this might be the tool you’ve been looking for.
What Is a DSCR Loan?
DSCR stands for Debt Service Coverage Ratio, a simple formula that compares the property’s monthly rental income to its monthly debt obligations.
Instead of focusing on your W-2s or tax returns, a DSCR loan is underwritten to the deal itself. If the rent more than covers the loan payment, you’re in the game.
That opens up a new path forward for investors in many different circumstances, including those who:
- Are self-employed or have complex income structures
- Have maxed out their conventional borrowing capacity
- Want to build a larger portfolio through an entity or LLC
- Are scaling faster than the pace of traditional financing
And unlike consumer mortgage products, DSCR loans are built for investor speed. That means less paperwork and a much more streamlined path to getting the deal closed.
Designed For Investors Who Are Ready to Grow
DSCR loans are built for real estate investors who are ready to take the next step, but find themselves boxed in by conventional lending.
Maybe you’ve hit your personal borrowing limit with the bank. Maybe your tax returns don’t reflect your full income picture. Maybe you’re self-employed, investing through an entity, or scaling a portfolio that traditional lenders just don’t know how to handle.
If the deal works on paper and the property’s rent covers the debt, a DSCR loan can get it done when others can’t.
Encore Finance works with experienced investors across a range of rental strategies, from short-term single-family rentals to multi-property portfolios. And because we focus on small-to-mid-market deals, we know how to structure loans that meet your goals without slowing you down.
Real Growth Happens When You Remove the Limits
DSCR lending removes many of the constraints that make it hard to scale with traditional loans.
Because the loan is underwritten to the property’s cash flow, not your W-2, you’re not penalized for building your business through an entity or reinvesting your income. You can borrow in an LLC, avoid stacking debt on your personal credit, and move more quickly from one acquisition to the next.
Instead of asking, “Will a bank approve me?” you can ask, “Does the deal make sense?”
And if it does, Encore Finance helps you move forward.
Ready to Scale Your Rental Portfolio With a Smarter Loan Strategy?
A DSCR loan can open up a whole new growth avenue for your business.
Click here to connect with an Encore Finance originator and discuss DSCR options for your next deal.
