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 term sheets 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).

DSCR Direct

Investor loans. Direct pricing.

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Ground-Up Construction Loans for Investors

Ground-up construction loans fund vertical construction on a vacant lot or teardown, typically over a 12–18 month term. Investor-focused programs are different from owner-occupied "construction-to-perm" loans — they’re short-term, interest-only, and underwrite to the completed appraised value, not your DTI.

Highlights

•Up to 85% loan-to-cost (land + hard + soft)
•Up to 70–75% loan-to-completed-value
•12–18 month interest-only term
•Land can roll into the loan if recently purchased
•Builder/GC experience reviewed; DIY rarely accepted

Who it's for

Builders developing for sale or rent, BRRRR investors building rather than renovating, and infill developers tackling 2-10 unit projects.

Active programs that fit

Fix & Flip Loan for Investors

confirmed 5/28/2026

Flexible fix and flip financing for 1-4 family properties, including manufactured homes and rural properties, with no income or reserves required.

FICO 500+LTV up to 70%no-income

Specialized Investor Loan Program

confirmed 5/19/2026

A 12-month financing program for experienced investors building ground-up residential projects, offering up to 90% of purchase price and 100% of construction costs.

LTV up to 70%full-doc

Fix & Flip Loan for Investors

confirmed 5/28/2026

A fix and flip loan for seasoned investors performing light rehab projects with fast, streamlined approvals.

FICO 650+LTV up to 90%full-doc

Specialized Investor Loan Program

confirmed 5/11/2026

Financing for rural properties and land use that does not align with standard mortgage programs, including properties that may not operate as full-scale agricultural businesses.

Specialized Investor Loan Program

confirmed 5/10/2026

A commercial ground-up construction loan for multi-family projects up to 10 units, designed for investors of all experience levels.

FICO 650+LTV up to 85%

Fix & Flip Loan for Investors

confirmed 5/16/2026

Private hard money financing for investment residential and commercial real estate, offering fast closings and flexible terms for various project types.

no-doc

Fix & Flip Loan for Investors

confirmed 5/28/2026

Fix and flip financing for commercial projects with loan amounts up to $5MM, featuring options for light and heavy rehabs.

FICO 620+LTV up to 70%full-doc

Specialized Investor Loan Program

confirmed 5/10/2026

Financing solutions for commercial agricultural properties that generate income, tailored to the specific operational needs of the borrower.

Frequently asked questions

Can I include the land in the loan?

Yes if the land was acquired within the last 6–12 months. Older land is usually appraised separately and capped at as-is value plus construction budget for total project cost.

Do I need a licensed general contractor?

Most ground-up construction programs require a licensed GC. A small number of programs allow owner-builder if you have prior completed projects, but pricing is higher and LTV lower.

How do construction draws work?

A draw schedule is set at closing, usually tied to completed line items (foundation, framing, MEP rough-in, drywall, finish, certificate of occupancy). An inspector verifies each draw before funds release.

What happens at the end of the construction term?

Refinance into a long-term DSCR loan, sell the completed property, or extend the construction loan in some programs. Most lenders charge an extension fee.

Got a ground-up construction scenario?

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Strategy guides

7 min read

Property Condition: What Qualifies for DSCR Financing

What property condition qualifies for DSCR financing. Habitability standards, common issues that disqualify, and how to fix before DSCR refi.

By state

Ground-Up Construction in Tennessee Ground-Up Construction in North Carolina Ground-Up Construction in Texas Ground-Up Construction in Georgia Ground-Up Construction in Colorado

Related programs

Fix and Flip Loans (Hard Money & Bridge)

Short-term fix and flip loans for real estate investors. Up to 90% of purchase + 100% of rehab. ARV-based underwriting. Fast close.

Fix-to-Rent Loans for BRRRR Investors

Bundled short-term rehab loan plus pre-approved DSCR refinance for BRRRR investors. One lender, one underwriting pass, two closings.