A DSCR (Debt Service Coverage Ratio) loan is the perfect solution for real estate investors in Virginia who want to qualify for financing without personal income verification. Instead of tax returns or pay stubs, lenders assess the property’s rental income to determine eligibility, making the process faster and more flexible.
Whether you’re purchasing a rental property or refinancing an existing one, a DSCR loan helps you secure funding with ease.
Ready to invest? Get a DSCR loan in Virginia with HomeAbroad today!
Table of Contents
Key Takeaways:
➡️ DSCR loans focus on the property’s cash flow rather than the borrower’s earnings, making real estate investment more accessible.
➡️ Unlike traditional loans, DSCR loans do not require income verification, tax returns, or extensive financial documentation.
➡️ HomeAbroad offers tailored mortgage solutions for both domestic and foreign investors, ensuring flexible financing options to meet your investment goals.
What Is a DSCR Loan?
A Debt Service Coverage Ratio (DSCR) loan is a type of loan designed for real estate investors. Unlike conventional loans that rely on personal income, DSCR loans assess a property’s ability to generate enough rental income to cover monthly mortgage payments.
With Virginia’s average rental yield at 7.3%, the market presents strong opportunities for generating steady cash flow. A DSCR loan allows investors to acquire properties that not only cover their mortgage expenses but also build long-term wealth through rental income.
Since DSCR loans prioritize rental income over personal financials, they typically have interest rates 1-2% higher than traditional mortgages. This accounts for the flexibility they offer in qualification. You can check the latest DSCR loan interest rates here.
DSCR loans provide a seamless way to expand portfolios without the hassle of income verification. As long as the property meets the DSCR criteria, securing financing becomes a straightforward process.
How to Calculate the DSCR Ratio?
The Debt Service Coverage Ratio is calculated by dividing a property’s gross rental income by its total monthly debt obligations, including principal, interest, taxes, insurance, and association fees (PITIA).
This ratio helps lenders determine if a property generates enough income to cover its mortgage payments.
DSCR Formula:
A DSCR of 1.54 means the property earns 54% more than its total monthly loan obligations, showing strong cash flow and making it a great candidate for DSCR Loan.
While most lenders require a DSCR of 1 or higher, HomeAbroad offers DSCR loans even for properties with a DSCR as low as 0.75, providing more flexibility for investors.
At HomeAbroad, our team of experts brings deep knowledge and years of experience to help investors secure DSCR loans with confidence. Whether you’re a domestic or global investor, our trusted guidance and proven strategies make obtaining a DSCR loan in Virginia seamless and hassle-free.
Requirements of DSCR Loans in Virginia
Getting a HomeAbroad DSCR loan in Virginia is simple for both domestic and global investors. Here’s a breakdown of the key requirements for each:
| Features | Domestic Investors | Foreign Investors |
|---|---|---|
| DSCR Ratio | 1 or Higher (No Ratio DSCR Program Available) | >= 1 for best terms, <1 eligible with higher down payment |
| Credit Score | Minimum 620 | No US credit needed |
| Down Payment | 20% | 25% |
| LTV Ratio | Up to 80% for Purchase and Rate/Term Refinance, Up to 75% for Cash Out Refinance | Up to 75% for Purchase and Rate/Term Refinance, Up to 70% for Cash Out Refinance |
| Cash Reserves | 2 months | 6 months |
| Property Use | Investment properties (residential and commercial) | Investment properties (residential and commercial) |
| Loan Amount | $75K – $10M | $75K – $10M |
Where We Lend DSCR Loan in Virginia
- Norfolk
- Virginia Beach
- Richmond
- Alexandria
- Danville
- Chesapeake
- Newport News
- Lynchburg
- Hampton
- Portsmouth
- Harrisonburg
- Suffolk
- Manassas
- Arlington
- Winchester
- Roanoke
Let’s see how a self-employed investor secured a DSCR loan in Virginia without income verification with HomeAbroad’s expert support.
Case Study: Securing a Profitable Rental in Virginia with a DSCR Loan
Samuel, a self-employed first-time buyer, wanted to purchase a rental property in Virginia without the hassle of income verification.
After connecting with HomeAbroad, our expert mortgage officer, Rachel Spaccarotelli, guided Samuel through every step—from selecting the right loan terms to ensuring his property met the DSCR requirements for financing.
Property Details:
Location: Richmond, Virginia
Property value: $359,900
Monthly Rent: $3,552
Loan Details:
Loan Amount: $269,925 (75% LTV)
Down Payment: $89,975 (25%)
Loan Term: 30 years fixed
Interest Rate: 6.8%
Mortgage Payment (PITIA): $2,605
DSCR Calculation:
DSCR = Gross Rental Income ÷ PITIA
DSCR = $3,552 ÷ $2,605
DSCR = 1.36
With a DSCR of 1.36, Samuel secured financing and ensured a positive cash flow of $947/month, making his investment profitable.
At HomeAbroad, we help investors like Samuel find the best DSCR loan options tailored to their needs. Our AI-driven property search engine makes it easy to discover high-yield investment properties, while our mortgage experts ensure a smooth and hassle-free financing process.
With years of experience in DSCR lending, I always emphasize the importance of choosing the right loan terms. A well-structured DSCR loan can make the difference between a cash flow-positive investment and a missed opportunity
Rachel Spaccarotelli, (Sr. Customer Loan Manager,HomeAbroad)
Top Places to Invest in Virginia with DSCR Loan
Virginia offers strong investment potential with a 5.9% annual rental yield, making it a great choice for investors seeking steady returns. The state’s diverse economy and high rental demand create opportunities for both short-term and long-term rentals.
With DSCR loans, investors can qualify for financing based on rental income, making it easier to scale their portfolios without traditional income verification.
Here are some top investment cities in Virginia:
City | Rental Type | Rental Yield |
|---|---|---|
Virginia Beach | Short-Term | 18.6% |
Richmond | Short-Term | 9.4% |
Norfolk | Long-Term | 6.5% |
Arlington | Short-Term | 6% |
Chesapeake | Long-Term | 5.8% |
Need help finding the right investment property? Our AI-driven investment property search platform can help you discover high-performing rentals in Louisiana or anywhere in the US
Get a HomeAbroad DSCR Loan in Virginia
HomeAbroad is a one-stop PropTech and FinTech platform that helps both global and US investors secure tailored DSCR loans with competitive rates and flexible terms to maximize investment returns. Here’s what sets us apart:
- Flexible Loan Options – DSCR loans available even for properties with a DSCR as low as 0.75.
- No US Credit History Required – Perfect for foreign nationals and international investors.
- AI-Driven Investment Property Search Platform – Discover cash flow positive properties that pays for themselves and generates additional income.
- Expert Guidance – Our team simplifies complex processes, ensuring you understand every step.
- Fast Processing – We value your time and strive for quick approvals and closings.
With HomeAbroad, you get tailored DSCR loans, expert guidance, and smart tools to help you find and finance profitable properties. Whether you’re a local investor or a global investor, we’re here to support your journey every step of the way.
Get a DSCR loan with HomeAbroad today and start building your real estate portfolio!
Pre-qualify for a DSCR Loan in a Few Clicks.
No Paystubs, W2s, or Tax Returns Required.
FAQs
Are DSCR loans hard to get in Virginia?
DSCR loans in Virginia are generally easier to qualify for compared to conventional loans because they focus on the rental income of the property rather than your personal income documents like bank statements, tax returns, or credit history.
How much do you need down for a DSCR loan in Virginia?
At HomeAbroad, domestic investors typically need a 20% down payment, while foreign investors require 25%. The down payment may vary based on the DSCR ratio—if the ratio is low, a higher down payment might be needed.
What is the maximum DSCR loan amount?
HomeAbroad offers DSCR loans with a maximum amount of up to $10 million, depending on the property’s rental income and eligibility criteria. This allows investors to finance high-value properties with ease.
At HomeAbroad, we ensure the reliability of our content by relying on primary sources such as government data, industry reports, firsthand accounts from our network of experts, and interviews with specialists. We also incorporate original research from respected publishers when relevant. Discover more about our commitment to delivering precise and impartial information in our editorial policy.
AirDNA: https://www.airdna.co/vacation-rental-data/app/us/illinois
Zillow: Housing Data – Zillow Research
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