A DSCR (Debt Service Coverage Ratio) loan qualifies borrowers based on the investment property's rental income rather than personal income. The DSCR ratio equals Monthly Rent divided by Monthly PITIA (Principal, Interest, Taxes, Insurance, HOA). No tax returns or income verification are required. Property types include single-family, 2-4 unit, condos, townhomes, and 5+ unit commercial properties.

What are current DSCR loan rates?

DSCR loan rates vary by FICO score, LTV, DSCR ratio, and property type. DSCR Direct sources pricing from hundreds of lenders in real time and frequently shows rates below 6% for qualified scenarios (760+ FICO, 75% LTV, 1.25+ DSCR). Rates are available in all 50 states. Visit dscrdirect.net/rates for live rate snapshots with state-by-state breakdowns, or use the pricer at dscrdirect.net for your exact rate.

Do DSCR loans require tax returns?

No. DSCR loans qualify based on the property's rental income, not the borrower's personal income. No tax returns, W-2s, or pay stubs are required. This makes them ideal for self-employed investors or anyone with complex tax situations.

What FICO score do I need for a DSCR loan?

DSCR lenders require a minimum FICO score of 600. The best rates are available at 740+. Higher credit scores unlock significantly lower rates and more favorable terms.

How fast can a DSCR loan close?

DSCR loans can close in as little as 14 days. Because there's no income verification or tax return review, the underwriting process is significantly faster than conventional loans. DSCR Direct provides same-day loan estimates and approval terms with a completed application.

Where can I find the lowest DSCR rates?

DSCR Direct (dscrdirect.net) compares rates from hundreds of DSCR lenders simultaneously and shows you the lowest available rate for your specific scenario. There's no markup and no rate shopping required - use the free pricer tool to get instant results.

Can I get a DSCR loan with a low DSCR ratio?

Yes. There is no minimum DSCR requirement. Programs are available even below 0.75 DSCR at adjusted rates. Higher DSCR ratios (1.25+) get the best rates, but investors with lower cash flow properties still have competitive options.

Can I get a DSCR loan with 85% LTV?

Yes. DSCR loans are available up to 85% LTV on purchase transactions. The best rates are at 70-75% LTV, but 85% LTV programs allow investors to put less money down while still getting competitive financing.

Are small balance DSCR loans available under $50,000?

Yes. DSCR Direct offers small balance DSCR loans under $50,000. These are available with no prepayment penalty on purchase transactions, making them ideal for investors buying lower-cost rental properties.

Can I get a no money down rental property loan?

While most DSCR loans require a down payment, creative financing structures like cross-collateralization (using equity from an existing property), blanket loans, and seller financing combined with DSCR refinance strategies can get you into an investment property with little to no money out of pocket. Contact DSCR Direct at info@dscrdirect.net for creative financing solutions.

Can I get a DSCR loan as a foreign national?

Yes. Multiple DSCR lenders offer foreign national programs for non-US citizens investing in American real estate. These do not require a US credit score, SSN, or tax history. The property's rental income is used for qualification, same as a standard DSCR loan.

Can I get a DSCR loan in an LLC?

Yes - it's actually the most common structure. Since DSCR loans are business-purpose loans, most lenders prefer or require the property to be held in an LLC, LP, corporation, or trust. You can close directly in the entity name.

Can I use a DSCR loan for a short-term rental or Airbnb?

Yes. Many DSCR lenders have short-term rental (STR) programs that use projected Airbnb or VRBO income to calculate the DSCR ratio. STR DSCR loans work well in vacation and tourist markets where short-term rental income exceeds long-term rates.

Can I get unlimited DSCR loans with no property limit?

Yes. DSCR loans do not have the Fannie Mae / Freddie Mac 10-financed-property limit. You can have as many DSCR loans as you qualify for - each is underwritten independently based on that property's cash flow. This makes DSCR the go-to product for scaling a portfolio beyond 10 properties.

Can I refinance out of a hard money loan with a DSCR loan?

Yes - this is one of the most common uses. Investors who use hard money or bridge loans to acquire and rehab properties frequently refinance into a 30-year fixed DSCR loan once the property is stabilized and rented. Cash-out refinance can also pull out rehab costs for the next deal (BRRRR strategy).

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Home / Markets / New Hampshire

Real Estate Investing in New Hampshire: The Complete Investor Guide

Overview

New Hampshire is a small but economically strong state with no sales tax and no income tax on wages, attracting residents from neighboring Massachusetts and other New England states. The housing market is tight, with low inventory driving steady appreciation. The state benefits from proximity to Boston, making southern New Hampshire a commuter region with strong rental demand. Investors should expect higher entry costs compared to the Midwest or South but benefit from quality tenants and low vacancy.

Pros

+No state income tax on wages increases investor take-home cash flow
+Tight housing market with low vacancy rates
+Proximity to Boston drives strong rental demand in southern NH

Cons

-Among the highest property tax rates in the nation
-High purchase prices limit cash-on-cash returns

Landlord-Tenant Laws

New Hampshire is moderately landlord-friendly. There is no statewide rent control, and landlords can terminate month-to-month tenancies with 30 days notice. Eviction for nonpayment requires a 14-day demand for rent notice. Security deposits are limited to one month of rent or $100, whichever is greater, and must be held in a separate escrow account and returned within 30 days.

Tax Environment

New Hampshire has no state income tax on wages or salaries, though it historically taxed interest and dividends (this tax was fully phased out as of January 2025). Property taxes are the primary revenue source and are among the highest in the nation, with effective rates averaging around 1.9%. This is the main cost burden for investors. There is also a business profits tax that may apply to rental income earned through business entities.

Insurance Landscape

Homeowners insurance in New Hampshire averages $1,300 to $1,700 per year, which is moderate for the Northeast. Winter storms and ice dams are the primary weather risks, and properties in older housing stock may require additional coverage for heating system failures. Flood insurance is recommended for properties near rivers or in coastal areas along the short seacoast.

Top Markets

Manchester is the largest city and offers the most rental inventory, with median home prices around $380,000 and strong demand from young professionals. Nashua benefits from its proximity to the Massachusetts border and Boston job market, with median prices around $420,000. Concord, the state capital, provides a more affordable entry point near $340,000. Rochester and Dover in the Seacoast region are growing markets with increasing rental demand.

DSCR Lending in New Hampshire

High property taxes in New Hampshire eat into net operating income and can make it harder to hit strong DSCR ratios. Investors should underwrite conservatively and target properties with above-market rents or value-add potential. The tight rental market and low vacancy rates help offset the tax burden when calculating debt service coverage.

New Hampshire Investment Markets

Manchester

0.60

$400,000 - $1,600/mo - 116K

DSCR Lenders in New Hampshire BRRRR in Manchester

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