DSCR loan requirements
DSCR loans let investors qualify on the property's rent instead of personal income — no tax returns, no debt-to-income math. Here is exactly what our underwriting looks for, how the ratio is calculated, and what to send to get a term sheet.
How DSCR is calculated
DSCR = gross monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, and HOA dues).
Example: a rental collecting $2,500 per month with a $2,000 PITIA payment has a DSCR of 1.25 — the rent covers the payment with a 25% cushion. At 1.0 the property breaks even; below 1.0 the file needs extra reserves or lower leverage.
DSCR calculator
Enter rent and the payment components to see your ratio, the qualifying range it lands in, and the maximum PITIA that still clears 1.00 and 1.20 coverage.
Enter your rental numbers
Lease amount, or market rent from a 1007 schedule.
Estimated monthly mortgage payment.
Annual tax bill divided by 12.
Hazard plus any flood premium.
Enter 0 if the property has no association.
1.25 DSCR
Strong (1.20 – 1.49)
Best pricing tier. Leverage commonly runs to 80%, and cash-out is available on seasoned files.
- Total PITIA
- $2,000
- Monthly cushion
- $500
- Max PITIA at 1.00
- $2,500
- Max PITIA at 1.20
- $2,083
Estimates only. Final DSCR, leverage, and pricing are set by underwriting after full review.
| Range | Tier | What to expect |
|---|---|---|
| Under 1.00 | Below breakeven | Reviewable with extra reserves, a lower LTV (typically 65–70%), or an interest-only structure to cut the payment. |
| 1.00 – 1.19 | Breakeven | Qualifies on most programs. Expect leverage in the 70–75% range and standard pricing. |
| 1.20 – 1.49 | Strong | Best pricing tier. Leverage commonly runs to 80%, and cash-out is available on seasoned files. |
| 1.50 and above | Excellent | Top-of-sheet pricing with leverage up to 85% on purchases for 700+ FICO borrowers. |
Program requirements at a glance
| Requirement | Current guideline |
|---|---|
| Minimum DSCR | 1.0 typical — 1.20+ for best pricing |
| Minimum FICO | 625+ personal credit score |
| Maximum LTV | Up to 85% (purchase); lower on cash-out |
| Loan amount | Up to $3,000,000 |
| Income documentation | None — no tax returns or W-2s |
| Property type | 1–4 unit, condo, STR, small multifamily |
| Occupancy | Investment / non-owner-occupied only |
| Vesting | LLC, corporation, or individual |
| Reserves | Typically 3–6 months of PITIA |
| Amortization | 30-year fixed and interest-only options |
Qualify without tax returns
Because the loan is business purpose and underwritten on the asset, there is no personal income review. That makes DSCR the fastest path for self-employed investors, borrowers with heavy write-offs, and anyone scaling a portfolio past conventional financing limits.
- Property address and current lease (or 1007 market rent schedule)
- Entity documents — articles, operating agreement, EIN letter
- Two months of bank statements showing reserves
- Insurance quote or binder for the subject property
- Government-issued ID for each guarantor
DSCR loan FAQs
What is a DSCR loan?
An investment-property loan qualified on the property's rent, not your personal income. Apply now for a same-day read on your scenario.
How is DSCR calculated?
Gross monthly rent ÷ monthly PITIA. Run your numbers in the calculator above, then submit an application for exact pricing.
What DSCR ratio do I need to qualify?
1.0 or higher fits most programs; 1.20+ prices best. Below 1.0 is still reviewable — send the scenario and we'll confirm.
What credit score is required for a DSCR loan?
625+ personal FICO. Apply and an advisor confirms your tier the same business day.
Do DSCR loans require tax returns?
No tax returns, W-2s, or DTI. Submit the short application to get your document list.
How much can I borrow and what is the maximum LTV?
Up to $3,000,000 and up to 85% LTV. Apply for your exact leverage.
Can I close a DSCR loan in an LLC?
Yes — these are business-purpose loans closed in an LLC or corporation. Contact us to structure vesting.
What property types are eligible?
1–4 unit rentals, condos, townhomes, short-term rentals, and small multifamily held for investment. Send your address to confirm.
How to get a loan for an investment property?
Three steps: apply, send the lease and entity docs, close. Start your application now.
How do I qualify for an investment property loan?
625+ FICO, an investment property, and rent that supports the payment. Apply and we confirm in minutes.
What type of loan is best for an investment property?
DSCR for held rentals, bridge or fix-and-flip for short holds, a second lien for equity. Contact us and we'll match the program.
Can I get a home equity loan on an investment property?
Yes — a closed-end second lien from $50k to $750k up to 80% CLTV. Apply to see your available equity.
How much down payment do I need for an investment property?
Typically 15–25% depending on credit and DSCR. Apply for your exact figure.
Can you use a VA or FHA loan for an investment property?
No — those are owner-occupied programs. We fund investment property only; apply for a business-purpose option instead.
What are current investment property loan rates?
Rates are quoted per file based on FICO, LTV, and DSCR. Submit an application for a live quote.
Can I get a DSCR loan with a ratio below 1.0?
Often yes, with more reserves, lower LTV, or interest-only. Send the scenario for review.
Do short-term rentals like Airbnb qualify?
Yes, with documented income. Apply and include 12 months of platform statements.
How much money do I need for reserves?
Usually 3–6 months of PITIA after closing. Contact us to confirm for your file.
Can I take cash out with a DSCR loan?
Yes, commonly up to 75% LTV. Apply now to size your cash-out.
How fast can a DSCR loan close?
Two to three weeks with a clean file. Apply today to start the clock.
Is there a prepayment penalty on DSCR loans?
Usually a 3–5 year step-down, with buy-down options. Ask an advisor when you apply.
How many DSCR loans can I have at once?
No property cap, and portfolio loans are available. Contact us with your holdings.
Are interest-only DSCR loans available?
Yes, and they raise your qualifying DSCR. Request interest-only on your application.
Do DSCR loans require an appraisal?
Yes, typically with a 1007 rent schedule. Apply and we order it for you.
Can a foreign national get a DSCR loan?
Yes, with a passport, US entity or ITIN, and US reserves. Apply to see your maximum LTV.
Ready to price your rental?
Send the address and lease — we'll return DSCR, leverage, and an indicative rate.
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