DSCR Direct

DSCR loan requirements are significantly simpler than conventional mortgages. There are no tax returns, no W-2s, no pay stubs, and no debt-to-income ratio calculation. Here's exactly what you need to qualify.

Credit Score (FICO)

The minimum FICO score for a DSCR loan is 620. However, your credit score significantly impacts your rate and available LTV. At 740+, you'll unlock the lowest rates and best terms. Between 680-740, you'll still get competitive pricing. Between 600-680, you'll have access to programs but at higher rates and potentially lower maximum LTV. There's no need to wait for a perfect score to get started - DSCR lenders work with a wide range of credit profiles.

Down Payment / LTV

DSCR loans are available up to 85% LTV on purchases, meaning as little as 15% down. For cash-out refinances, most programs go up to 75-80% LTV. Lower LTV means lower risk for the lender and significantly better rates for you - the difference between 85% LTV and 60% LTV can be substantial. If you have the capital, putting more down gets you a meaningfully lower rate.

DSCR Ratio

The DSCR ratio is the property's monthly rental income divided by the monthly PITIA payment (Principal + Interest + Taxes + Insurance + HOA). A DSCR of 1.25 or higher gets the best rates. A DSCR of 1.0 means the property breaks even. There is no minimum DSCR requirement - programs are available even below 0.75 DSCR at adjusted pricing. The rental income is established by an appraisal with a market rent analysis, not by existing leases (though existing leases can help support the value).

Reserves

Most DSCR lenders require the borrower to have cash reserves after closing - typically 6-12 months of the monthly PITIA payment. Reserves can include bank accounts, retirement accounts, stocks, and other liquid assets. Higher reserves can help compensate for a lower FICO score or higher LTV.

Property Requirements

The property must be an investment property - DSCR loans are not available for primary residences or second homes. Eligible property types include single-family homes, 2-4 unit multifamily, condos (warrantable and non-warrantable), townhomes, and 5+ unit apartment buildings. The property must be in rentable condition and located in a market where rental comparables are available for the appraisal.

Entity / Vesting

DSCR loans can close in your personal name, an LLC, LP, corporation, or trust. Most investors choose to close in an LLC for liability protection. Since DSCR loans are business-purpose loans, closing in an entity is common and straightforward.

Documentation Required

This is where DSCR loans really shine. You'll need: a completed loan application, credit report authorization, bank statements showing reserves (typically 2 months), entity documents if closing in an LLC/corp, property insurance, and that's essentially it. No tax returns. No W-2s. No pay stubs. No profit and loss statements. No CPA letter. The property appraisal (ordered by the lender) establishes the value and market rent.

Check Your Eligibility Instantly

The fastest way to see if your scenario qualifies is to use the DSCR loan pricer at dscrdirect.net. Enter your property details and see rates from hundreds of lenders in seconds. If you get results, you have programs available. If your scenario is unique, reach out to info@dscrdirect.net - we specialize in creative financing for investment properties.