DSCR Loans (Debt Service Coverage Ratio)

DSCR Loans (Debt Service Coverage Ratio loans) are built for real estate investors who want to qualify based on property income, not personal income. Lenders use the property’s rental income divided by its housing expenses (principal, interest, taxes, and insurance) to determine whether it can support the loan—typically aiming for a DSCR of 1.0 or higher. This makes DSCR loans ideal for investors expanding rental portfolios or buying through LLCs without needing full tax documentation. At Iris Mortgage, we help Michigan investors leverage DSCR financing to grow cash-flowing properties quickly and efficiently, without traditional income hurdles.

Other Non-QM Loan Types

P&L Only, 1099 Only, WVOE Only, and Asset Utilization programs are specialized Non-QM loan options designed to help borrowers with unique income situations qualify for a mortgage. A P&L Only loan uses a profit-and-loss statement prepared by a CPA to verify income—ideal for self-employed borrowers whose business expenses reduce their taxable income. A 1099 Only loan is for independent contractors who receive 1099 forms instead of W-2s, allowing qualification based on gross income shown on those forms. A WVOE Only loan relies solely on a written verification of employment from an employer rather than full tax documentation—perfect for borrowers with limited paperwork but consistent pay history. Finally, Asset Utilization loans qualify borrowers based on their liquid assets, such as bank, investment, or retirement accounts, by converting a portion of those assets into “income” for qualifying purposes. At Iris Mortgage, we help Michigan homebuyers and investors use these flexible documentation options to achieve financing when traditional guidelines don’t fit.