Financing and funding
May 13, 2025
5
min

How to Use a DSCR Loan for a Rental Property

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If you're a foreign national looking to invest in U.S. real estate, you likely already know the struggle.

Traditional lenders often turn you away due to a lack of U.S. credit history or residency. About 50% of international buyers purchase U.S. properties in cash, compared to just 28% of American buyers. This isn't by choice, but because financing seems out of reach.

Here's the good news: there's a loophole that you can exploit. 

Debt-service-coverage-ratio (DSCR) loans offer a way to acquire U.S. rental property without the bureaucracy. DSCR loans help you qualify based on the property's rental income potential rather than your personal financial credentials. In this guide, we'll walk you through how DSCR loans work and why they’re particularly beneficial for foreign nationals. 

Key takeaways:

  • DSCR loans unlock access to financing U.S. real estate for foreign investors: Qualification is based on rental income, not U.S. credit or personal income history.
  • Waltz streamlines the entire investment process: From LLC formation to banking setup, everything is handled in one place.
  • Foreign nationals can invest with confidence: With faster closings, minimal paperwork, and no residency requirements, DSCR loans offer a clear path to building a U.S. rental portfolio.

How DSCR loans work and why that matters

At its core, a debt-service-coverage-ratio loan measures how comfortably the rental income from your property covers your loan payments. If your property generates enough rental income to pay the mortgage, you’ll likely qualify.

For example, if your rental property brings in $2,000 per month and your monthly loan payment is $1,500, your DSCR would be 1.33—meaning you earn 33% more than what you owe each month.

Unlike traditional loans, DSCR financing doesn't rely on your personal income, tax returns, or U.S. credit history, making it uniquely suited for foreign nationals. Instead, lenders focus entirely on the property's rental potential. In many cases, a DSCR above 1 is considered acceptable.

The biggest advantage for international investors? No U.S. credit history required. This removes a major hurdle that often blocks foreigners from traditional financing options. Whether you're navigating complex visa statuses, have income from international sources, or lack U.S.-based employment altogether, a DSCR loan levels the playing field, giving you direct access to U.S. real estate investment opportunities.

For instance, imagine earning rental income abroad but facing constant roadblocks when trying to secure a U.S. mortgage. With a DSCR loan, the property's income potential speaks louder than your passport or pay stubs.

Why foreign nationals prefer DSCR loans

Foreign investors face enough hurdles without getting tangled in red tape. DSCR loans cut through the noise and offer three clear advantages:

  1. Less paperwork, more progress.
  2. Fast decisions and scalable investing.
  3. Built for rental properties, not primary homes.

Serious about building your U.S. real estate portfolio? Apply for a DSCR loan with Waltz today.

1. Less paperwork, more progress

No U.S. tax returns? No problem. 

With DSCR loans, proving your financial health is simpler. Often, bank statements from your home country are enough to get the ball rolling, reducing stress and speeding up your investment timeline. However, not all lenders are willing to work with foreign nationals even with a DSCR loan. This is where Waltz stands out, offering a streamlined and welcoming path for international investors.

2. Fast decisions and scalable investing

While traditional financing can take months, DSCR loans through Waltz typically close within about a month, giving you a much faster path to your next rental property. This speed isn't just convenient—it allows you to repeat the process, swiftly building a substantial U.S. real estate portfolio.

See how others made it happen: Real Estate Investment Success Stories.

3. Designed for rental properties, not primary residences

DSCR loans aren't an afterthought for investors; they're specifically designed for rental properties. Waltz stands out by making the requirements even more accessible: no U.S. credit history, no U.S. income verification, no residency requirement, and an LLC setup included through Waltz’s Investor Kit. It's a true end-to-end solution built for global investors.

Who DSCR loans work best for

  • Foreign investors focused on generating rental income
  • Buyers without U.S. tax returns or income history
  • Individuals aiming to scale quickly and hold properties long-term

Learn more: Residential Rental Property Types that Qualify for DSCR Loans  

Choosing the right setup for your investment

Setting up your investment correctly is just as important as choosing the right property. From entity formation to property type, Waltz helps foreign investors make smart, compliant decisions right from the start.

Structure your purchase like a pro

When investing in U.S. real estate, how you structure your property purchase matters. An LLC (Limited Liability Company) is a common choice for foreign investors: it provides asset protection and simplifies ownership. 

Waltz’s Investor Kit streamlines this crucial step by handling your LLC and EIN (Employer Identification Number) setup in minutes, not weeks. Normally, setting up an LLC would require hiring a lawyer, navigating state filing systems, and waiting months for your EIN approval. 

Waltz bundles everything into one seamless service, saving you time and money while eliminating the headache of coordinating multiple stakeholders. Additionally, choosing the right type of property, whether it's a condo, single-family home, or multi-unit, can significantly impact your rental income potential..

How to get a DSCR loan with Waltz

Securing a DSCR loan through Waltz is designed to be as simple and transparent as possible. Here’s a quick look at the steps you’ll follow:

Step-by-step application process

Getting started with a DSCR loan through Waltz is straightforward and stress-free. Here's how it works:

  1. Find a profitable investment: Calculate the DSCR to ensure profitability and find a place that fits your budget and your goals. For example, you might want a steady rental income from a multi-family property.
  2. Gather essential documents: Prepare key documents like your passport, income verification (such as bank statements or pay slips), and details about the property. Being organized helps speed up the process.
  3. Select a lender experienced with foreign nationals: A lender like Waltz offers specialized support to guide you through every step.
  4. Set up an LLC and U.S. bank account: Create a U.S.-based LLC and open a domestic bank account for your investment. It’s a straightforward process—and Waltz can help you handle both quickly.
  5. Submit your loan application: With everything in place, send in your application. Double-check that all documents are complete to help avoid unnecessary delays.
  6. Perform due diligence: This step involves inspecting the property, securing an appraisal, and submitting any additional documents requested by the lender to confirm the property’s condition and value. Be sure to also review your term sheet.
  7. Complete the purchase process: Once everything clears, it’s time to sign, fund, and finalize the deal. Congratulations—you’re now a U.S. property owner!

Learn more: How to Apply for a DSCR Loan as a Foreign National

What makes Waltz different

Unlike traditional banks or scattered service providers, Waltz offers everything under one roof. You'll work with real people who guide you through every step of your investment journey. 

There’s no need to chase multiple providers or wait months for approval. With Waltz, you can confidently close your loan in as little as a month, without any requirement for a U.S. credit score or local income verification.

Make your next rental property purchase easier with DSCR loans

Investing in U.S. real estate can be challenging for foreign nationals who work with traditional lenders. DSCR loans help level the playing field by shifting the focus from personal income and credit to the property's earning potential, opening up new financing opportunities that might otherwise remain out of reach for foreign nationals.

With Waltz handling the complexities behind the scenes, you can confidently move forward with your investment plans: whether it's your first U.S. property or an expansion of your portfolio.

Ready to invest in U.S. real estate without the typical headaches? Start your DSCR loan application today!

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