What is a DSCR loan?
DSCR stands for debt service coverage ratio: the property's monthly rent divided by its monthly payment (principal, interest, taxes, insurance and HOA). A DSCR of 1.25 means the rent is 25% more than the payment.
DSCR loans are built for investors. Because approval is based on the property's income, self-employed borrowers and investors with many properties can qualify without the paperwork of a conventional mortgage.
How DSCR pricing works
- Credit score: higher scores get lower rates and higher leverage
- LTV: more equity lowers the rate
- DSCR: stronger cash flow improves pricing; some lenders go below 1.0
- Prepayment penalty: longer prepay terms lower the rate
- Loan purpose: cash-out prices slightly higher than purchase
Our DSCR engine compares multiple lenders at once and shows the best available rate for your scenario.
DSCR below 1.0 or no rent history?
If the rent doesn't cover the payment, look at our no-ratio and no-doc programs. They're priced strictly on credit and LTV, with no DSCR, rent roll or income documents.
DSCR Loans: terms at a glance
| Purchase LTV | Up to 80% |
|---|---|
| Cash-out LTV | Up to 75% |
| Term | 30-year fixed; interest-only options |
| Min credit | 660+ on most programs; lower with less leverage |
| Properties | 1–4 units, condos, townhomes, short-term rentals |
| Vesting | Individual, LLC or corporation |
Terms shown are representative and subject to underwriting, appraisal and state availability. All loans are business-purpose loans on non-owner-occupied property. This is not a commitment to lend.