DSCR Loan Requirements
DSCR loans skip personal income docs — but they're not requirement-free. Here's exactly what you need to qualify, at a glance. For the full walkthrough, read our complete DSCR requirements guide.
A qualifying DSCR
Gross rent ÷ PITIA. Floor is typically 1.0; 1.25+ earns the best pricing. Below 1.0 is financeable via low-DSCR or no-ratio programs.
What is DSCR? →Credit score
Most programs start at 660–680; best rates at 720+. Some lenders go to ~620 with compensating factors. FICO tiers your rate, not your eligibility.
Down payment / LTV
Up to 80% LTV on a purchase (20% down); 75% common. Cash-out refinances cap around 70–75%. Lower leverage improves your rate.
LTV explained →Cash reserves
Commonly 3–6 months of PITIA after closing — proof you can carry the property through a vacancy. More for larger or multiple loans.
What is PITIA? →Eligible property
1–4 unit residential, condos, townhomes, short-term rentals, and some 5–10 unit. Must be non-owner-occupied (business-purpose only).
Entity & documents
Close in an LLC or your name. Short doc list: ID, LLC docs, bank statements, lease(s), insurance, and a lender appraisal with a market-rent schedule. No tax returns or W-2s.
Want the detail behind each requirement — including how to strengthen a marginal application? Read the full guide, or run your DSCR first.
Frequently asked questions
What is the minimum DSCR to qualify?
Most lenders set the floor at 1.0, and 1.25+ unlocks the best rates and leverage. Low-DSCR and no-ratio programs can finance properties below 1.0 at lower LTV, a higher rate, or with more reserves.
What credit score do I need?
Typically 660–680 to start, with the best pricing at 720+. Some lenders go to ~620 with compensating factors like lower leverage or a stronger DSCR.
Do I need tax returns for a DSCR loan?
No. DSCR loans qualify on the property’s rent versus its payment, so no tax returns, W-2s, or employment verification are required. You’ll provide ID, entity documents, bank statements, and property documents.
How much do I have to put down?
Up to 80% LTV (20% down) on a purchase with strong DSCR and credit; cash-out refinances usually cap at 70–75% LTV. Lower leverage earns a better rate.
Ready for a real quote?
Tell us about the deal and get terms back fast — no obligation, no hard credit pull to start.