Arizona DSCR Loans for STR Financing

Grow Your Portfolio with DSCR Loans

Whether you're investing in short-term rentals in Scottsdale, long-term properties in Phoenix, or multifamily units in Tucson, our DSCR loans  provide the flexibility and competitive rates Arizona investors need to scale confidently. These loans are ideal for qualifying based on property income rather than W-2s or tax returns. We focus entirely on your property's cash flow and its ability to cover the loan — not your personal credit profile.

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How to qualify

To obtain a quote, we will need the following information:

Property Value and

 Purchase Price


Down Payment

Amount


Credit Score



 Asset Types

  • Single Family Homes
  • Townhomes
  • Condos
  • 2 - 4 Units (Duplex, Triplex, Quadplex)
  • Multi-Family: 5 - 8 Units
  • Mixed-Use: 2 - 8 Units
  • Multi-Family: 9+ Unit



Loan Terms


  • Loan Sizes: $100k up to $3.5 Million (Larger loan sizes available on a case by case basis)
  • Purchase LTV: Up to 85%
  • Rate & Term Refinance LTV: Up to 80% 
  • Cash Out Refinance LTV: Up to 80%
  • Amortization: 30 Year % 40 Year Amortization Options Available
  • Term Lengths: 5/6 ARMs, 7/6 ARMs, 10 Year Interest Only, 30 Year Fixed & 40 Year Fixed
  • Floor Rate: 5.50% (subject to change daily due to market volatility)
  • Full Recourse with personal guarantee required for all borrowers with majority ownership (typically 20%+ or 25%+ if closing in an Entity)
  • DSCR Requirement: 1.00x or greater depending on loan size and property type. Sub-1.00x DSCR and NO DSCR options available.
  • Vesting: Lending to Individuals, LLCs, and Corporations. Trusts Allowable on a Case by Case Basis.
  • Average Time to Close: 14 to 35 days

Wondering if you qualify for investment property financing in your area?


We offer lending services in all 50 states!

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Frequently Asked Questions

What is a DSCR loan and how does it work for Arizona real estate investors?

A DSCR loan (Debt Service Coverage Ratio loan) lets real estate investors qualify for financing using the rental income produced by a property, rather than relying on tax returns or credit scores. As long as the property generates enough income to cover its monthly debt obligations, borrowers may be approved—even without traditional documentation. This makes DSCR loans ideal for scaling a portfolio or investing through an LLC. In Arizona, where cities like Phoenix, Tucson, and Scottsdale offer strong STR and long-term rental performance, this type of financing offers flexibility and speed for serious investors.

How is DSCR calculated in a typical loan scenario?

Arizona real estate investors calculate DSCR by dividing a property's net operating income (NOI) by its annual debt service—covering mortgage, taxes, and insurance. For example, if a property in Arizona earns $84,000 in NOI and its total debt service is $70,000, the DSCR would be 1.20. This indicates the asset generates more than enough income to cover loan costs. While Arizona lenders often accept a 1.00 ratio, most prefer 1.15 or above for better loan terms. Understanding DSCR is essential in competitive Arizona markets like Phoenix, Tucson, and Scottsdale. A stronger DSCR gives you more leverage when seeking flexible, investor-friendly financing in Arizona.

What is considered a good DSCR ratio for Arizona investors when applying for financing?

For Arizona real estate investors, a strong DSCR ratio typically begins at 1.20. Although lenders may approve loans at a 1.00 DSCR, higher ratios reduce risk and improve approval speed. A DSCR of 1.20 or above signals that your Arizona property is generating more than enough income to cover the mortgage and other obligations. This is especially important in STR-heavy markets like Phoenix and Scottsdale. Understanding what DSCR means in Arizona helps you structure offers, predict financing outcomes, and protect your bottom line in a competitive investment landscape.

Can I qualify for a DSCR loan if my personal income is limited?

Yes, you can qualify for a DSCR loan even if your personal income is limited. DSCR loans, often referred to as Airbnb loans when used for short-term rental properties, are designed to approve borrowers based on the income the property generates—not personal W-2s, tax returns, or debt-to-income ratios. Lenders calculate the property's debt service coverage ratio to determine if the income is sufficient to support the loan. As long as the DSCR meets the required threshold—usually 1.00 or higher—you can often be approved regardless of personal income. This makes Airbnb loans ideal for self-employed investors, business owners, or anyone scaling a rental portfolio without relying on traditional underwriting standards.

How does a lender evaluate rental income when approving a DSCR loan?

In Arizona, lenders assess rental income for DSCR loans by evaluating the property's financial performance rather than the borrower’s income. Arizona investors can present signed leases, short-term rental income history, or market rent analysis to demonstrate the property's earning potential. The income is then used to calculate the DSCR by comparing it to the property's annual debt obligations. If the DSCR meets Arizona lender requirements—usually 1.00 or higher—the loan may be approved without personal income verification. DSCR loans in Arizona are ideal for scaling rental portfolios. Understanding how rental income is evaluated in Arizona helps investors qualify quickly and confidently.

What’s the minimum debt service coverage ratio required for approval?

In Arizona, the minimum DSCR required for loan approval is generally 1.00, which ensures the property generates enough rental income to cover its debt payments. Some Arizona lenders may accept a DSCR as low as 0.75, though this typically requires higher reserves or borrower experience. A DSCR of 1.20 or higher is considered strong in Arizona and can help investors secure better rates, especially in active markets like Phoenix, Scottsdale, or Tucson. DSCR loans in Arizona allow for flexible qualification, but higher ratios give lenders more confidence in property performance. Understanding the DSCR minimums in Arizona helps investors structure deals that not only qualify but also yield more favorable terms in today’s competitive rental landscape.

Who should consider using a DSCR instead of a traditional loan?

These loans are perfect for self-employed individuals, LLCs, and investors managing multiple properties. Arizona borrowers often choose DSCR loans to avoid personal income verification, using property cash flow to qualify instead. In markets like Phoenix and Scottsdale, Arizona investors appreciate the ability to scale quickly without traditional loan restrictions. DSCR lending in Arizona supports long-term and STR-focused portfolios alike.

Expanding your rental portfolio beyond Arizona? We also offer financing in California and New Mexico , making it easy to scale across the Southwest with the same asset-based approval process.