DSCR Loans
The rental qualifies. Not your W2.
DSCR loans underwrite the property’s income instead of your tax returns — which is why they’re the default financing tool for investors scaling past their first few doors. Tell us your scenario and we’ll match you with a licensed loan officer who closes DSCR deals every week.
Free. No credit pull to get matched. Typical match time under 48 hours.
The formula lenders use
DSCR =
Gross Monthly Rent
Monthly PITIA
At 1.22, this property clears the 1.2 threshold where many lenders unlock their best pricing tiers. Illustrative example — run your own in the DSCR calculator.
How it works
What is a DSCR loan, exactly?
DSCR stands for Debt Service Coverage Ratio — the property’s gross rent divided by its full monthly payment (PITIA: principal, interest, taxes, insurance, and any association dues). A DSCR of 1.0 means rent exactly covers the payment; 1.25 means rent covers it with 25% headroom.
Because the property qualifies itself, the lender never asks for your W2s, pay stubs, or tax returns. That removes the two walls most investors hit with conventional financing: debt-to-income limits that count every mortgage against you, and the 10-financed-property cap. With DSCR, each new door stands on its own rent.
The trade-off is price: DSCR rates typically run roughly 0.5–1.5% above comparable conventional rates, and most carry a prepayment penalty for the first 3–5 years (buy-downs available). For an investor whose alternative is “no loan at all,” that spread is the cost of scale — and the rent usually pays it.
Self-employed & write-off heavy
Your tax returns show low AGI by design. DSCR lenders never look at them — the lease does the talking.
Portfolio builders
Past the 4–10 conventional ceiling, or planning to be. Each DSCR property qualifies on its own income, indefinitely.
LLC & partnership buyers
Closing in an entity, splitting deals with partners, or keeping doors off personal credit. DSCR is built for it.
Qualification
Typical 2026 DSCR loan requirements
Guidelines vary by lender — these are the ranges we see most often across our partner panel. A scenario that misses one row can often be offset on another (e.g., more reserves for a thinner DSCR).
| Criterion | Typical guideline | Worth knowing |
|---|---|---|
| Credit score | 620+ (best pricing at 740+) | Some lenders go to 600 with pricing adjustments. |
| DSCR ratio | 1.0+ (best tiers at 1.2+) | Sub-1.0 'no-ratio' programs exist at higher rates and lower LTV. |
| Down payment | 20–25% | 75–80% max LTV on purchases; cash-out refis usually cap near 75%. |
| Income documents | None — no W2s, no tax returns | The property's rent (lease or market rent per appraisal) does the qualifying. |
| Entity / vesting | LLC ok — and common | Most investors close in an LLC for liability and portfolio separation. |
| Reserves | 3–6 months PITIA | More reserves can offset a thin DSCR or lower credit score. |
| Property types | 1–4 units, condos, some 5–10 unit | Must be non-owner-occupied investment property. |
| Loan amounts | $100K – $3M+ | Varies by lender; portfolio and blanket options for multiple doors. |
Illustrative guidelines, not a commitment to lend. Final terms set by the lender after full underwriting.
Get matched
See what rates your property could qualify for.
One short form. We route your scenario to a vetted, state-licensed loan officer on our panel who actively closes DSCR loans — matched on your state, property type, and deal size. No obligation, no credit pull to get matched.
- Matched with a DSCR specialist, typically within 48 hours
- Real scenario pricing — not a teaser rate from a banner ad
- Not sure your deal pencils? Run the DSCR calculator first
FAQ
DSCR loan questions, answered straight
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is an investment-property mortgage that qualifies you on the property's rental income instead of your personal income. The lender divides gross monthly rent by the full monthly payment (principal, interest, taxes, insurance, and association dues — PITIA). If the ratio is 1.0 or higher, the rent covers the payment and most lenders will consider the deal. No W2s, pay stubs, or tax returns are required.
What DSCR ratio do I need to qualify in 2026?
Most lenders want a DSCR of at least 1.0, meaning rent fully covers the payment. The strongest pricing tiers typically start at 1.2 or above. Some lenders offer sub-1.0 or 'no-ratio' programs for negative-cash-flow properties in appreciating markets, but expect roughly 0.5–1.0% higher rates and lower maximum LTV.
What are DSCR loan rates right now?
DSCR rates price off the 10-year Treasury plus a spread that varies with your credit score, LTV, DSCR ratio, and prepayment-penalty structure. As an illustrative 2026 range, with the 10Y near 4.2%, DSCR loans have generally been quoting around 6.4%–7.9% — roughly 0.5–1.5% above comparable conventional rates. Your actual quote depends on your full scenario; our live market dashboard tracks the 10Y and indicative spreads daily.
Can I get a DSCR loan through my LLC?
Yes — closing in an LLC is not just allowed but standard practice with DSCR lenders. Because these are business-purpose loans, vesting in an entity keeps the property off your personal credit profile with most lenders, simplifies partnerships, and supports liability separation as you scale. You'll typically sign a personal guaranty.
How many DSCR loans can I have?
There is no program-wide cap. Unlike conventional financing, which limits you to 10 financed properties (and gets practically difficult after 4–6), DSCR lenders evaluate each property on its own income. Investors routinely hold 10, 20, or more DSCR-financed doors, and many lenders offer blanket loans that wrap multiple properties into one note.
How fast can a DSCR loan close?
Typically 2–4 weeks, since there's no employment or personal-income verification to slow underwriting down. The critical-path items are the appraisal (with a rent schedule, Form 1007) and title. Investors competing with cash buyers often use DSCR loans precisely because the timeline is predictable.