No-Ratio DSCR Loans (No DSCR Minimum)
A no-ratio DSCR loan removes the minimum debt-service-coverage ratio entirely — you can finance a property where rent does not fully cover the mortgage. The trade is usually a higher down payment (5–10% more) and a slightly higher rate. Useful in low-cap-rate markets where appreciation, not cash flow, is the play.
Highlights
- •No DSCR minimum (DSCR can be below 1.0 or even 0.0)
- •Vacant properties at close acceptable
- •Cash flow appraisal still required (1007 rent schedule)
- •LTV typically capped 5–10% lower than ratio-DSCR
- •No personal income docs
Who it's for
Investors in expensive coastal markets where cap rates are below 4%, second-home buyers using DSCR structure, and investors planning short-term rental conversion where projected income exceeds long-term lease comps.
Active programs that fit
DSCR Loan for Investment Properties
confirmed 5/15/2026DSCR program for investment properties allowing for true business purpose loans without requiring a license.
Specialized Investor Loan Program
confirmed 5/14/2026Prime mortgage program for owner-occupied and non-owner occupied properties featuring P&L only options and DSCR options with no ratio requirements.
Frequently asked questions
Why would I take a no-ratio loan instead of just qualifying with DSCR?
Some properties simply do not produce enough long-term-lease rent to hit a 1.0 DSCR after the new payment. Coastal SFRs and high-priced urban condos often fall in this bucket. No-ratio DSCR lets you close anyway.
How much more down payment vs. a standard DSCR loan?
Most no-ratio programs cap LTV at 65–70% (vs. 75–80% on standard DSCR). So 5–10% more down on a purchase.
Is a no-ratio loan considered a Qualified Mortgage?
No. It is a non-QM business-purpose loan, like all DSCR products. ATR (ability-to-repay) does not apply because the loan is for investment purposes.
Can I do cash-out refinance with no-ratio?
Yes, with LTV usually 5% lower than purchase. Some programs cap cash-out at 60–65% LTV.
Got a no-ratio dscr scenario?
Tell us the deal - we'll match you with the right lender and come back with current pricing.
Common questions on this topic
Can I get a DSCR loan with bad credit?
Yes. DSCR loans are available with FICO as low as 600 (some programs lower) at adjusted LTV and rate.
How much down payment do I need for a DSCR loan?
Typically 20–25% on a purchase. Best pricing at 25%+. A few programs allow 15% with strong DSCR and 740+ FICO.
What is the minimum DSCR ratio?
Standard programs require 1.0+ DSCR. No-ratio programs accept 0.0+. Best pricing typically at 1.20–1.25 DSCR.
How does cash-out refinance work on a DSCR loan?
Cash-out DSCR refis are capped at 75% LTV typical (70% on no-ratio). 6-month seasoning required by most lenders. Same DSCR rules apply.
Strategy guides
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The BRRRR Strategy: Complete Guide for Real Estate Investors
Complete BRRRR investing strategy guide. Step-by-step process, financing structure, common mistakes, and how to scale a BRRRR portfolio.
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Short-Term Rental Investor Guide: Markets, Numbers, Operations
Complete short-term rental investor guide. How to choose markets, run the numbers, finance with STR-DSCR, and operate at scale.
Related programs
Short-Term Rental DSCR Loans (Airbnb / VRBO)
DSCR loans that qualify on short-term rental income. Airbnb, VRBO, and direct-booking properties. Use AirDNA projections or 12-month T12 STR statement.
Foreign National DSCR Loans (No US Credit Required)
Investment property loans for non-resident foreign nationals. No US credit, no US income, qualify on rental income. Close in your name or LLC.