DSCR Loans

DSCR loans (Debt Service Coverage Ratio) are investment property loans designed for real estate investors. These loans qualify based on the rental income and cash flow of the property rather than the borrower's personal income, W-2s, or tax returns. DSCR loans make it easier and faster to finance or refinance rental properties, including single-family homes, 2-4 unit properties, and certain multi-family investments.

What is a DSCR Loan?

DSCR loans are non-qualified mortgage (non-QM) loans that focus on the property's ability to cover its own debt service. They are ideal for investors building rental portfolios without the hassle of personal income verification.

• Qualify based on the property's rental income instead of your personal income
• Minimum DSCR as low as 1.0 (1.25+ qualifies for the best rates and terms)
• Down payment of 20%–25% (up to 80% LTV on purchases)
• Credit scores starting at 640–660
• 30-year fixed terms available, with possible interest-only options
• Purchase, rate/term refinance, and cash-out refinance programs
• Competitive rates typically ranging from 6.0%–7.75% depending on DSCR, credit, and LTV

Typical Requirements for DSCR Loans

Here are the key documents and criteria most lenders require:

Property & Rental Information

• Lease agreements or market rent appraisal/schedule
• Property appraisal showing fair market rent
• Photos and details of the rental property

Credit & Financial

• Credit report (minimum FICO 640–660)
• Bank statements or proof of reserves (typically 6 months of PITIA)
• Down payment/equity documentation

Personal Documents

• Driver’s license or government-issued ID
• Social Security card
• Completed loan application

DSCR vs Conventional Loans

Unlike conventional loans that rely heavily on your personal debt-to-income (DTI) ratio and tax returns, DSCR loans look at the property’s cash flow. This makes them perfect for self-employed investors, high-net-worth individuals, or anyone who wants to keep personal finances separate from investment property financing.

What Can My Rental Property Support?

Use our quick DSCR calculator below to see if your property qualifies and how much loan it can support.

Get Pre-Approved Today

Speak with a DSCR Loan Specialist to review your rental property and get personalized terms.