What is a DSCR loan?
A Debt Service Coverage Ratio (DSCR) loan is an investment property loan that qualifies you based on the property's rental income rather than your personal income. If the property generates enough rent to cover the mortgage payment, you qualify. DSCR is calculated as: Net Operating Income / Mortgage Payment (PITI).
What DSCR ratio do I need?
We offer DSCR ratios as low as 0.75, giving you flexibility even on properties with tighter margins. A DSCR of 1.0 means rent equals the payment. A DSCR of 1.25+ gets you the best rates and terms. Lower DSCR ratios (0.75-0.99) may require a larger down payment.
What are the loan amount limits?
We offer DSCR loans from as low as $75,000 up to $3,000,000. This covers everything from small single-family rentals to high-value multi-unit investment properties.
Do I need tax returns or W2s?
No. DSCR loans do not require personal income documentation. No tax returns, no W2s, no pay stubs, no employer verification. Qualification is based entirely on the property's rental income and the loan's debt service coverage ratio.
Can I do a cash-out refinance with a DSCR loan?
Yes. We offer both purchase and cash-out refinance DSCR loans. Cash-out refinances allow you to pull equity from your investment properties — up to 75% LTV — without showing personal income. Use the cash for your next deal, renovations, or portfolio growth.
What loan terms are available?
We offer 30-year, 20-year, 15-year, and 10-year fixed rate options. Most investors choose the 30-year for maximum cash flow, but shorter terms can offer better rates and faster equity buildup.
How much do I need for a down payment?
Typically 20-25% down on a DSCR purchase. Up to 80% LTV on purchases and 75% LTV on cash-out refinances. Some programs allow as little as 15% down with a strong DSCR ratio and credit score above 720.
What credit score do I need?
DSCR loans are available across four credit tiers: 740+ gets you the best rates and highest LTV options. 700-739 offers competitive pricing. 660-699 provides standard rate options. 620-659 is evaluated case-by-case and may require a larger down payment. Higher credit scores unlock better pricing, higher leverage, and more flexible DSCR thresholds.
What property types qualify?
1-4 unit residential investment properties, condos (warrantable and non-warrantable), and townhomes. Properties must be non-owner-occupied investment properties.
Can I use Airbnb or VRBO income?
Yes. Short-term rental income from Airbnb, VRBO, and similar platforms can be used to qualify. We can use 12-month historical rental income or projected market rents based on comparable properties.
What states can I get a DSCR loan in?
We offer DSCR loans in 40 states. California and Florida are our home markets where we are directly licensed, but through our lender network we can close DSCR deals across most of the country. Contact us with your property location and we will confirm availability and any state-specific requirements.
How fast can you close?
Most DSCR loans close in 21-30 days. We have closed deals in as little as 14 days when all documentation is ready. Speed depends on appraisal turnaround and title work.