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With affordable home prices and an impressive 8% rental yield, Missouri is a prime market for investors looking to generate strong cash flow. But if traditional lenders are slowing you down with income verification roadblocks, you’re missing out on prime opportunities. What if you could secure financing based solely on your property’s rental income?
A lot of investors I’ve worked with ran into issues getting a traditional loan because of high debt-to-income (DTI) ratios, because they already had other mortgages. I helped them qualify for a mortgage with our DSCR loan.
A Debt Service Coverage Ratio (DSCR) loan lets you qualify for a rental property mortgage without W-2s, tax returns, or personal income verification. Whether you’re eyeing Kansas City’s booming short-term rental market or St. Louis’s steady cash flow properties, here’s how a DSCR loan can help you scale your portfolio in Missouri—faster and with fewer restrictions.
Apply today with HomeAbroad’s DSCR loans and take the next step toward your real estate investment goals!
Key Takeaways:
1. Tailored specifically for real estate investors, these loans allow you to qualify based on your property's rental income rather than personal income verification.
2. With DSCR loans, you can secure financing without W-2s, pay stubs, or tax returns, making them ideal for real estate investors.
3. You can finance single-family homes, multi-units, condos, and short-term rentals like Airbnb with DSCR loans, and there is no limit on the number of properties you can invest, making it ideal for portfolio growth.
Table of Contents
What is a DSCR loan?
A Debt Service Coverage Ratio (DSCR) loan is a type of real estate investment loan that allows you to qualify based on your property’s rental income rather than your personal income. Instead of requiring W-2s, tax returns, or pay stubs, lenders assess the rental income vs. mortgage payment ratio to determine eligibility.
For example, I recently worked with a Canadian couple who financed their rental property using our DSCR loan. Their expected monthly rental income was $15,750, while their mortgage payment was $9,282. They easily qualified for the loan and generated a positive cash flow of $6,468 after covering their mortgage.
In Missouri, where rental yields average around 8%, finding the right property with strong rental income could mean owning a property that pays for itself while generating profit. Whether you’re targeting Kansas City, St. Louis, or Springfield, we can help you find and finance the such rental property with a DSCR loan.
How to Calculate Your DSCR Ratio
The Debt Service Coverage Ratio (DSCR) is a key metric lenders use to determine whether a property’s rental income is sufficient to cover mortgage payments. A higher DSCR indicates strong cash flow, improving your chances of securing better loan terms and interest rates.
DSCR Loan Formula:
HomeAbroad offers a user-friendly DSCR Calculator to simplify your loan eligibility process in Missouri. By entering your key figures, you can quickly calculate your DSCR ratio, helping you understand your financing options.
Example
Calculating the DSCR Ratio for a Missouri Property:
A DSCR of 1.28 means the property generates 1.28 times its debt obligations, indicating positive cash flow. Most lenders require a minimum DSCR of 1.0, but HomeAbroad offers loans for DSCRs as low as 0.75.
For properties with a DSCR below 0.75, we offer “No Ratio DSCR Loans,” giving you access to funding even if your rental income doesn’t fully cover your debt obligations. However, this may involve a larger down payment and slightly higher interest rates.
DSCR Loan Interest 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.
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. For more details on DSCR loans and how they work, visit HomeAbroad’s DSCR loan hub.
Requirements for DSCR loans in Missouri
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.
Whether you’re a first-time investor or an experienced buyer expanding your portfolio, our straightforward and efficient qualification process makes securing a DSCR loan easier.
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
Areas We Lend in Missouri
Branson
Osage Beach
Lake Ozark
Columbia
Camdenton
Sunrise Beach
Hollister
Kimberling City
Springfield
Columbia
Kansas City
St. Louis
Chesterfield
Springfield
Wentzville
Let’s evaluate a case study of our past client to understand how profitable investing in the Missouri real estate market is.
Case Study: James Carter, A Self-Employed Investor Secured a DSCR Loan in Missouri
Property Details:
Location: St. Louis, Missouri Property Price:$500,000 Monthly Rent:$5,800
Loan Details:
Loan Amount:$400,000 Down Payment: 25% Monthly PITIA:$4,500
DSCR Calculation:
DSCR Ratio = Gross Rental Income ÷ PITIA DSCR = $5,800 / $4,500 DSCR = 1.29
Client Profile
Investor: James Carter, Real Estate Investor
Location: St. Louis, Missouri
Property Type: 4-Unit Multi-Family Rental
Loan Type: DSCR Loan
The Challenge
A self-employed investor, James wanted to acquire a high-yield rental property but struggled to qualify for a traditional mortgage due to fluctuating income.
The Solution
Rachel Spaccarotelli, Senior Customer Loan Manager at HomeAbroad, recommended a DSCR loan, allowing James to qualify based on property cash flow instead of personal income.
In St. Louis, Missouri, where traditional mortgage approvals can be challenging for self-employed investors with fluctuating income, we empower clients like James Carter to unlock high-yield opportunities by focusing on the true value of their properties. With our innovative DSCR loan solutions, we transformed James’ financing challenge into a seamless investment experience—allowing him to qualify based on his property’s cash flow rather than personal income. Now, he enjoys positive cash flow, property appreciation, and steady equity growth—all without the hurdles of traditional income verification.
James successfully closed on his investment property without income verification and now enjoys the following: ✅ Positive Cash Flow:$1,300/month ($15,600/year) ✅ Annual Property Appreciation:5% (Estimated $25,000/year) ✅ Equity Growth:Over $40,600/year (Cash Flow + Appreciation + Loan Paydown)
With HomeAbroad’s DSCR loan, James secured a hassle-free investment, generating both monthly income and long-term wealth.
Top Places to Invest in Missouri with DSCR Loan
Missouri offers a strong real estate market with attractive rental yields, making it a prime investment opportunity. With an average home price of around $250,000—well below the national average of $355,328—investors can enter the market at a lower cost while still benefiting from steady property appreciation and rental demand.
Thanks to top universities and growing industries, cities like Kansas City, St. Louis, and Columbia attract long-term demand from students and professionals. Meanwhile, Branson, Lake of the Ozarks, and St. Charles thrive on tourism, creating excellent short-term rental potential.
With Missouri’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
Branson
Long-Term
10.4%
Osage Beach
Short-Term
9.7%
Lake Ozark
Short-Term
9.3%
Hollister
Long-Term
9.5%
Kimberling
Short-Term
9.1%
Get a DSCR Loan in Missouri with HomeAbraod
At HomeAbroad, we’re dedicated to helping investors find and finance cash flow-generating properties in Missouri. As a leading PropTech and FinTech platform, we make it easy for both seasoned investors and first-time buyers to secure DSCR loans that align with their investment goals.
With HomeAbroad, you can:
✅ Buy a property that pays for itself – Our DSCR loans focus on property cash flow, not your personal income. ✅ Leverage advanced tools & expert support – Use AI-powered property searches, get personalized advice, and enjoy end-to-end concierge assistance. ✅ Tap into a powerful network – Connect with 500+ real estate professionals and explore specialized mortgage solutions for investors.
Find and finance a property in Missouri that generates positive cash flow with HomeAbroad. Apply for DSCR loans today and start unlocking your investment potential!
FAQs
Can foreign nationals apply for DSCR loans in Missouri?
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 Missouri?
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.
Steven Glick is the Director of Mortgage Sales at HomeAbroad and has over a decade of experience in the mortgage industry. As a licensed mortgage originator (NMLS# 1231769), Steven brings deep expertise in loan processing, sales operations, and non-traditional mortgages.
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