By Sagi GliksmanReal Estate Investing3 min readUpdated
DSCR Loan Requirements (2026): Credit, Down Payment and DSCR
DSCR loan requirements: minimum DSCR, down payment, reserves and eligible properties. The property's rent qualifies the loan, not your income.
Key takeaways
- A DSCR loan qualifies on the property's rent, not your income. No W-2s, tax returns or DTI.
- DSCR = monthly rent ÷ monthly PITIA. A 1.0 DSCR means the rent exactly covers the payment.
- DSCR loan terms (as of November 2026)*: $50K-$9M, up to 85% LTV to buy (U.S. residents), 80% rate/term, 70% cash-out.
- Minimum DSCR 0.75, best pricing at 0.8 or higher. Rates from 6.172%* (this may be for the strongest files, sometimes with a buydown).
- Same-day term sheet on your actual property. No hard credit pull.
Conventional mortgages stop working as a rental portfolio grows.
They cap you at 10 financed properties, require years of tax returns and discount self-employed income. A DSCR loan has none of those limits.
DSCR loans in brief
A DSCR (debt service coverage ratio) loan is a non-QM mortgage that qualifies on the property's rental income, not your personal income.
No W-2s. No tax returns. No personal DTI.
DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance and association dues). A 1.0 DSCR means rent exactly covers the payment.
Best pricing starts at a DSCR of 0.8. Our lenders fund down to 0.75 with a pricing adjustment.
DSCR loan requirements
- Property: a rental (long-term or short-term), not a home you live in
- DSCR: 0.75 minimum with a pricing adjustment, 0.8 or higher for the best pricing
- Down payment: 15% minimum for U.S. residents, 30% for foreign nationals
- Credit: no single cutoff. Credit, down payment, DSCR and reserves are priced together
- Rent: the current lease, or the appraiser's market rent on a purchase or vacant property
- Reserves: often 6 months of PITIA for the best programs
- Borrower: you or your LLC. No tax returns, W-2s or pay stubs
Who DSCR loans are built for
- Self-employed investors with hard-to-document income
- Investors at the 10-property conventional cap
- Foreign nationals with no SSN or U.S. credit
- Short-term rental (Airbnb / VRBO) operators
- Investors running a BRRRR or 1031 strategy
DSCR loan terms (as of November 2026)*
- Loan size: $50K-$9M
- Max LTV: 85% on purchase (U.S. residents), 80% on rate/term refinance, 70% on cash-out refinance
- Min DSCR: 0.75 with a pricing adjustment, 0.8+ for the best pricing
- Term: 30-year fixed, ARM or interest-only
- Rates from 6.172%* (this may be for the strongest files, sometimes with a buydown)
- Eligible: SFR, 2-4 unit, condo, condotel, townhome, short-term rentals
- Same-day term sheet, no hard credit pull
- * Subject to underwriting
Current DSCR loan rates
DSCR rates move every week. Your rate depends on your DSCR, credit score, down payment, loan size and the prepayment penalty you choose.
We publish this week's starting DSCR rates from live lender quotes, updated weekly.
Starting rates by scenario, from live lender quotes.
See this week's DSCR ratesDSCR vs conventional investment loan
Conventional loans carry the lowest rates. They cap you at 10 financed properties, require full income documents and review your personal finances.
DSCR rates run higher. In exchange: no property cap, borrowing through an LLC and qualification on the property, not on you.
Near the 10-property limit, DSCR keeps you buying.
How to maximize approval and pricing
These move your rate most: your DSCR, credit score, LTV, the prepayment penalty you choose, and loan size and property type.
- Credit, down payment, DSCR and reserves are priced together, with no single cutoff
- Bring 20-25% down for the tightest pricing
- Use a long-term lease in place over a market-rent estimate
- Aim for a DSCR of 0.8 or higher for the best pricing
- Keep 6 months of PITIA in reserves for the best programs
Rate, LTV and DSCR on your property, the same day. No hard credit pull.
See DSCR loan termsFrequently asked questions
What is the minimum DSCR for a DSCR loan?
0.75, with a pricing adjustment. A DSCR of 0.8 or higher gets the best pricing.
How much can I borrow with a DSCR loan?
$50K-$9M per property.
Up to 85% LTV on a purchase for U.S. residents, 80% on a rate/term refinance and 70% on a cash-out refinance, subject to underwriting.
What credit score do I need for a DSCR loan?
There is no single cutoff. Lenders price your credit score together with your down payment, DSCR and reserves, so a lower score can still work with more down or stronger rent.
We check every file with our lenders before saying no.
Can I get a DSCR loan in an LLC?
Yes. Most DSCR loans close in an LLC, single-member or multi-member. Most lenders ask the owners to sign a personal guarantee.
No LLC yet? We help you set one up before closing.
Can foreign nationals get a DSCR loan?
Yes. Foreign nationals qualify on the property's rent with no SSN or U.S. credit, up to 70% LTV.