DSCR rental loans in Phoenix, 2026

• DSCR means debt service coverage ratio. It's the expected monthly rent divided by the full monthly payment.
• The full payment includes principal, interest, property taxes, homeowners insurance, and HOA dues.
• A ratio of 1.00 means rent equals the payment. Each lender sets its own minimum.
• DSCR loans are for rentals only. If you'll live in the home, start with conventional, FHA, or VA.

Who it fits

You're buying or refinancing a rental in the Phoenix area, and the rent needs to carry the payment. Living there yourself? buy a home

How it works

Expected rent divided by principal, interest, taxes, insurance, and HOA. Try the DSCR calculator for an estimate. Then we review the property, the lease, and how the home will be used.

What it costs

Investor loans are often priced differently from a loan on your own home. Some have a prepayment penalty, a fee for paying the loan off early. Leaving taxes or HOA out of the math is how a deal looks fine until the lender reviews it.

A rental is judged differently than your home

On the home you live in, the lender looks mostly at your personal income and debts. On a rental, many DSCR lenders look first at the property: can the rent carry the payment? If it can't under that lender's rules, a strong paycheck may not save the loan.

I'm Paige Martinez, a mortgage broker at Home Loans by Paige in Phoenix. This is education, not an approval or a rate quote.

How the DSCR math works

• Write down the expected monthly rent.
• Write down the full monthly payment: principal, interest, taxes, insurance, and HOA.
• Divide the rent by the payment.

Example only: rent of $2,400 and a payment of $2,000 gives a ratio of 1.20. Rent of $2,000 and a payment of $2,000 gives 1.00.

Each lender sets its own minimum. Some want rent above the payment. Some accept less than 1.00 when the rest of the application is strong, like extra savings. I'll tell you which rules apply to your deal.

Leave out taxes, insurance, or HOA, and the ratio looks better than any lender will accept. I use a real insurance quote and the tax for that exact parcel. Run your own numbers first. DSCR calculator

How DSCR differs from a loan on your own home

On your own home, the lender looks at your debt-to-income ratio (monthly debts compared with income), credit, and savings. On many DSCR loans, the rent math comes first. That can help a self-employed buyer whose tax return shows lots of write-offs. It can also block a buyer when the rent won't cover a high-HOA townhome.

DSCR isn't FHA for landlords. If you'll live in the home, it's the wrong tool. conventional vs FHA

What goes into the payment

• Principal and interest
• Property taxes for that Arizona parcel, not a national average
• Homeowners insurance you can actually buy, with the roof and pool included
• HOA or condo dues
• A vacancy allowance, on some lenders' versions of the math

Townhomes in Gilbert and Chandler can carry dues that sink the ratio even when the rate looks fine.

An Arizona tax detail: a seller who lived in the home may have received the Homeowner Rebate, a tax credit only for primary residences. Once the home becomes a rental, it moves to a rental tax class without that credit, so your bill can be higher than the seller's. Arizona also requires rental owners to register the property with the county assessor.

When DSCR is the wrong place to start

• You'll live in the home.
• The rent can't cover the payment, even before a vacancy allowance.
• The condo project doesn't meet the lender's investor rules.
• You want the lowest possible payment on your own home.

Short-term rentals: Airbnb-style income isn't the same as a 12-month lease. Some lenders won't use it. Others will, with a track record and a reduced figure. A great peak-season weekend isn't the monthly rent a lender will use.

Where the property is changes the ratio

Insurance in Mesa isn't insurance in North Scottsdale. A Chandler community with an HOA isn't a 1970s Phoenix ranch with none. I also help investors in Prescott and northern Arizona, where taxes and insurance tell a different story.

Two to four units? That uses a rent roll (the rent for each unit) and often different down payment rules. Tell me the unit count on our first call.

What to bring

• The listing or address
• The current lease, or a note that the home is vacant
• HOA dues and an insurance quote, if you have them
• LLC paperwork, if you're buying in a business name
• How much cash you have for the down payment and savings left over (reserves)

Investor loans usually ask for more down and more in reserves than a loan on your own home. Rules vary by lender, so I'll give you the real number for your deal.

More: DSCR loans · investors

Call or text (602) 448-4470 with the listing, the rent, and the HOA dues.