DSCR Loans in Idaho: How Investors Qualify With No Income Docs

Getting approved for a mortgage as a real estate investor used to mean jumping through hoops—W2s, tax returns, pay stubs, and endless underwriting questions. But if you’re buying a rental property in Idaho, there’s a better option: DSCR Loans.

These are no-income-documentation loans built specifically for investors. Instead of looking at your personal income, lenders only care if the property can cover the monthly payment.

Let’s break it down.

What Is a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. It’s a fancy way of saying: “Does the rent cover the mortgage?”

Here’s the formula:

DSCR = Gross Rental Income ÷ Monthly Mortgage Payment

If that number is 1.0 or higher, you qualify.

Why Investors Love DSCR Loans

• No W2s, no tax returns, no DTI calculations

• Great for cash-flowing short-term and long-term rentals

• Many allow title in an LLC

• No hard cap on financed properties

DSCR Loan Requirements in Idaho

Here’s what you’ll typically need to qualify:

• Minimum FICO Score: 620+ (some lenders prefer 640+)

• Down Payment: 20%–25% depending on the lender

• DSCR Threshold: 1.0 or higher (some go lower with rate adjustment)

• Property Type: 1–4 units, long-term or short-term rental

• Ownership Options: Can be titled in LLC or personal name

• Eligible Uses: Purchase, refinance, or cash-out

No tax returns. No pay stubs. No employment verification.

Example: How DSCR Works

Let’s say you’re buying a duplex in Coeur d’Alene.

• Your total monthly mortgage payment is $1,900

• Your projected rental income is $2,200

DSCR = 2,200 ÷ 1,900 = 1.15 → You qualify.

Now flip it:

• Mortgage payment is $2,000

• Rent is $1,800

DSCR = 0.90 → You may still qualify with a rate bump or more down.

Use DSCR Loans for Refinance or Cash-Out

These loans aren’t just for purchases. A lot of investors use DSCR to refinance out of:

• Hard money loans

• All-cash purchases

• Expensive private money

If your property is leased and cash-flowing, you can refi and lock in a fixed 30-year loan—some even allow interest-only options.

Where DSCR Loans Work Best in Idaho

They work well in any rental-heavy market:

• Coeur d’Alene – Great for vacation rentals

• Post Falls / Hayden – Strong long-term tenant demand

• Boise / Meridian – Growing rental markets

• Idaho Falls / Twin Falls – Solid cash flow and affordability

Whether you're local or out-of-state, this is one of the most flexible loan types you can use.

Common Misconceptions

“DSCR loans are hard money.”
Nope. These are 30-year fixed mortgages—often with no prepay penalty.

“I need perfect credit.”
You don’t. Most lenders work with 620–640+ credit scores.

“I have too many mortgages already.”
That doesn’t matter. DSCR loans don’t look at your personal DTI.

Who This Loan Is For

• Airbnb/STR buyers

• Out-of-state investors

• Borrowers buying in an LLC

• People maxed out on traditional mortgage limits

• Anyone who doesn’t want to show tax returns or income

Ready to Buy Your Next Rental?

If the rent covers the mortgage, you're in the game.

I help investors across Idaho get approved without the usual income docs, tax returns, or red tape.

DM me your deal or reach out today—let’s make it happen.