A DSCR loan in Oregon allows real estate investors to secure financing based on rental income rather than personal income verification. This makes it an ideal option for those looking to grow their investment portfolio without the hurdles of traditional mortgage qualifications.
With DSCR loans, investors can access flexible financing tailored to their property’s cash flow, making it easier to acquire rental properties or refinance existing ones. Whether you’re a domestic or foreign investor, these loans provide opportunities to invest in Oregon’s real estate market without needing to pay stubs, tax returns, or W-2s.
Follow this guide to learn more and apply for an Oregon DSCR loan today!
Key Takeaways:
➡️ With HomeAbroad’s DSCR loan options, you can refinance multiple investment properties, maximizing cash flow and optimizing your portfolio.
➡️ The approval process depends on your property’s debt service coverage ratio, meaning strong rental income can help secure better loan terms.
➡️ DSCR loans allow you to skip the extensive documentation process and get approved quickly, allowing you to focus on the property's cash flow instead of personal financials.
➡️ HomeAbroad provides DSCR loans tailored to various property types, including single-family homes, multifamily units, and short-term rentals.
Table of Contents
What are DSCR Loans?
A DSCR (Debt Service Coverage Ratio) loan is a type of real estate financing that qualifies borrowers based on a property’s rental income rather than personal income. It is commonly used by investors who want to expand their portfolio without providing W-2s, tax returns, or personal debt-to-income verification.
In Oregon, where rental yields average around 5-6%, DSCR loans allow investors to secure properties that generate positive cash flow and cover mortgage obligations. The approval process is based on the property’s ability to meet or exceed debt payments, making it an attractive option for investing in high-demand rental markets.
How to Calculate Your DSCR Ratio
If you’re a real estate investor in Oregon, understanding the Debt Service Coverage Ratio (DSCR) is crucial for securing favorable loan terms. The DSCR helps lenders determine if their rental property generates enough income to cover its mortgage payments.
The formula for DSCR is:
Let’s apply the DSCR formula using a real-world example of a rental property in Portland, Oregon.
Example
Calculating the DSCR Ratio for an Oregon Property:
Since the DSCR ratio meets the lender’s requirement of 1.25, the property qualifies for financing under standard loan terms.
However, HomeAbroad offers No Ratio DSCR loans for properties with a DSCR as low as 0.75, allowing investors to secure financing even if rental income doesn’t fully cover mortgage payments. This option may require a larger down payment and higher interest rates to mitigate risk.
Want to calculate your DSCR instantly? Use HomeAbroad’s DSCR calculator to check your DSCR ratio and loan eligibility today without any mathematical hassle!
DSCR Loan Interest Rates
Due to the unique nature of DSCR loans and the associated increased risk for lenders, these rates are typically 1% to 1.5% higher than conventional mortgage rates.
Understanding these rates is crucial for investors as they significantly impact the profitability of investment properties. Before investing, follow our DSCR loan interest rate guide to learn about current DSCR loan interest rates and their influencing factors. For more details on DSCR loans and how they work, visit HomeAbroad’s DSCR loan hub.
How to Qualify for a DSCR Loan in Colorado: The Requirements
At HomeAbroad, we make qualifying for a DSCR Loan simple and flexible, whether you’re a domestic investor or a foreign national. Now, let’s learn about our tailored DSCR loan requirements to provide domestic and foreign investors with flexible financing solutions.
| 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 | 620 or higher | No US credit history required |
| Down Payment | 20% | 25% |
| Loan-to-Value (LTV) | Up to 80% for purchase/refinance Up to 75% for cash-out refinance | Up to 75% for purchase/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 |
⚠ No Ratio DSCR Loans available for properties with DSCR <1, requiring a higher down payment but allowing financing for underperforming or transition properties.
Areas We Lend in Oregon
Investing in Oregon’s real estate market with a HomeAbroad DSCR loan can be highly beneficial, especially in cities with strong rental demand and steady property appreciation. Here are some of the best places for real estate investors looking to leverage DSCR loans to invest.
- Portland
- Hillsboro
- Salem
- Medford
- Klamath Falls
- Bend
- Eugene
- Corvallis
- Springfield
- Redmond
Let’s evaluate a case study of our past client to understand how profitable investing in the Oregon real estate market is.
Case Study: Michael Reynolds, a seasoned real estate investor, expands a Rental Portfolio in Oregon
Property Details:
Location: Portland, Oregon
Property Price: $550,000
Monthly Rent: $4,600
Loan Details:
Loan Amount: $440,000
Down Payment: 25%
Monthly PITIA: $3,792
DSCR Calculation:
DSCR Ratio = Gross Rental Income ÷ PITIA
DSCR = $4,600 / $3,792
DSCR = 1.21
Client: Michael Reynolds
Advisor: Steven Glick, Director of Mortgage Sales, HomeAbroad (NMLS# 1231769)
Michael Reynolds, a seasoned real estate investor from Washington, sought to expand his rental portfolio by acquiring a single-family rental property in Portland, Oregon. He aimed to secure a high-yield investment while keeping his personal income separate from his real estate finances.
Michael partnered with Steven Glick, an expert in Debt Service Coverage Ratio (DSCR) loans, to achieve this, who structured a financing solution based entirely on the property’s income potential. This eliminated the need for traditional income verification, allowing Michael to secure financing efficiently.
A DSCR of 1.21 indicates that the rental income exceeds debt obligations by 23%, ensuring a positive cash flow of $808 and strong investment potential.
Why does this matter?
Steven Glick highlights the importance of this financing approach:
By structuring financing around the property’s income rather than the investor’s personal earnings, DSCR loans provide a streamlined, scalable approach for real estate growth. Portland’s strong rental demand made this strategy ideal for Michael, allowing him to expand his portfolio while maintaining financial independence.
Steven Glick, Director of Mortgage Sales, HomeAbroad
This case highlights how DSCR loans empower real estate investors to scale efficiently, bypassing traditional income verification hurdles. With the right expertise and a tailored financing strategy, Michael successfully entered one of Oregon’s most promising rental markets, ensuring a profitable and sustainable investment.
Top Places to Invest in Oregon with DSCR Loan
Oregon offers a dynamic real estate market with strong rental demand, making it a compelling investment opportunity. With an average home price of around $450,000—moderately above the national average—investors can benefit from steady property appreciation and robust rental income.
Thanks to top universities and thriving industries, cities like Portland, Eugene, and Corvallis attract long-term demand from students and professionals. Meanwhile, Bend, the Oregon Coast, and Hood River flourish with tourism, providing excellent short-term rental potential.
With Oregon’s solid rental yields and access to DSCR loans, investors can secure properties that cover their mortgage and generate positive cash flow.
City | Rental Type | Rental Yield |
|---|---|---|
Lincoln City | Long-Term | 10.9% |
Seaside | Long-Term | 9.5% |
Rockaway Beach | Short-Term | 8.8% |
Pacific City | Short-Term | 8.1% |
Sunriver | Short-Term | 11.3% |
Get a HomeAbroad DSCR loan in Oregon
HomeAbroad makes real estate investment simple for international buyers with tailored DSCR loans. Whether investing in short-term rentals in Portland, multifamily properties in Eugene, or single-family homes in Bend, our flexible financing helps you scale faster.
As a leading PropTech and FinTech platform, we offer foreign national mortgages, AI-powered property searches, and access to 500+ expert agents. Our concierge services cover LLC formation, US bank accounts, insurance, and property management—giving you a seamless investment experience.
Take advantage of Oregon’s thriving real estate market with expert-backed DSCR loans and full-service support. Apply now to secure your DSCR loan in Oregon with HomeAbroad!
FAQs
Can foreign nationals apply for DSCR loans in Oregon?
Foreign nationals can apply for DSCR loans through HomeAbroad Loans without needing a US credit score, making it a flexible financing option for international investors.
What are the interest rates for DSCR loans?
DSCR loan interest rates vary depending on market conditions, borrower profiles, and property types, but they are typically higher than conventional loan rates. However, HomeAbroad Loans offers competitive rates that allow investors to leverage property cash flow for better returns.
How long does it take to get a DSCR loan in Oregon?
At HomeAbroad Loans, we streamline the application process, ensuring a smooth experience from loan application to closing. We guarantee that the closing will happen within 30 days.
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: Rental Data
Zillow: Home Prices
How Does HomeAbroad Help?
"Unlocking US real estate for the international buyers with our tailored products."
US Newcomer Mortgages
Global Investor Mortgages 
DSCR Loans
Real Estate Agents 
