DSCR Loans Explained: A Guide for Real Estate Investors
How DSCR loans work: how DSCR is calculated, current rates and LTVs, who qualifies, and how DSCR compares to conventional financing.
Key takeaways
- A DSCR loan qualifies you on the property's rent, not your personal income - no W-2s, tax returns or DTI.
- DSCR = monthly rent ÷ monthly PITIA. A 1.0 DSCR means the rent exactly covers the payment.
- Our DSCR terms (as of September 2026): $75K - $3M, up to 85% LTV, minimum DSCR 0.75, rates from 6.5%.
- You get an instant term sheet priced on your actual property, with no hard credit pull.
If you've ever tried to qualify for a fifth, sixth, or twentieth rental property with a conventional mortgage, you've discovered the wall: lenders cap the number of financed properties, they want years of tax returns, and they punish self-employed income. DSCR loans are how serious investors scale past that wall.
What is a DSCR loan?
A DSCR (Debt Service Coverage Ratio) loan is a non-QM mortgage that qualifies based on a property's rental income - not the borrower's personal income. No W-2s. No tax returns. No DTI calculation on your personal life.
The math is simple: DSCR = monthly rent ÷ monthly PITIA (principal, interest, taxes, insurance, association dues). A 1.0 DSCR means rent exactly covers the mortgage payment. Pricing is best at 1.0 and above, and programs go as low as 0.75 - or even no-ratio.
Who DSCR loans are built for
- Self-employed investors with hard-to-document income
- Investors at the 10-property conventional cap
- Foreign-national investors with no SSN or U.S. credit
- Short-term rental (Airbnb / VRBO) operators
- Anyone running a BRRRR or 1031 strategy
Our DSCR loan terms (as of September 2026)
- Loan size: $75K - $3M
- Max LTV: 85% on purchase, 75% on cash-out refinance
- Min DSCR: 0.75 with a rate adjustment; 1.0+ for the best pricing
- Term: 30-year fixed, ARM, or interest-only
- Rates from 6.5%
- Eligible: SFR, 2-4 unit, condo, condotel, townhome, short-term rentals
- Instant term sheet - no hard credit pull
DSCR vs conventional investment loan
Conventional loans (Fannie/Freddie) offer the lowest rates but cap you at 10 financed properties, demand full income docs, and underwrite you personally. DSCR loans cost a bit more in rate but have no property cap, close in an LLC, and qualify the asset - not you. For most investors past property #4, DSCR is the only way to keep scaling without breaking the underwriting.
How to maximize approval and pricing
- Strengthen what you control - credit, down payment, DSCR and reserves are priced together, not as one cutoff
- Bring 20-25% down for tightest pricing
- Use a long-term lease in place rather than market-rent estimates when possible
- Aim for a DSCR of 1.0 or higher to avoid rate adjustments
- Keep 6 months of PITIA in reserves to unlock the best programs
Get an instant, real DSCR term sheet for your property - no hard credit pull.
See current DSCR pricingFrequently asked questions
What is the minimum DSCR for a DSCR loan?
We fund down to a 0.75 DSCR with a rate adjustment. A DSCR of 1.0 or higher gets the best pricing.
How much can I borrow with a DSCR loan?
$75K - $3M per property, up to 85% LTV on a purchase and 75% on a cash-out refinance.
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.