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).

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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 5/14/2026

A non-QM DSCR program for investors, including first-time investors, that allows for negative cash flow properties and offers flexible qualification options like asset utilization.

FICO 620+LTV up to 85%dscr-only, alt-doc

Non-QM Investor Loan

confirmed 5/11/2026

LTV up to 85%alt-doc, 12mo-bank-stmt

DSCR Loan for Investment Properties

confirmed 5/13/2026

Investor-focused DSCR program for residential properties, including non-warrantable condos and multi-unit properties, with no income ratio requirements.

FICO 620+LTV up to 85%dscr-only

Bridge Loan for Investors

confirmed 5/20/2026

A short-term bridge loan with terms ranging from 12 to 24 months, designed for investors with at least 2 years of experience. This program does not require a DSCR calculation and offers up to 80% LTV.

FICO 700+LTV up to 80%

DSCR Loan for Investment Properties

confirmed 5/18/2026

A business purpose DSCR loan for investment properties that does not require personal income documentation or a mortgage license. The program allows for up to 85% LTV on purchases and rate-term refinances with a minimum FICO of 620.

FICO 620+LTV up to 85%dscr-only

DSCR Loan for Investment Properties

confirmed 5/19/2026

DSCR loan program for investment properties allowing up to 85% LTV with no cash-out seasoning requirements.

LTV up to 85%

DSCR Loan for Investment Properties

confirmed 5/17/2026

A DSCR investment property loan program featuring no ratio requirements, expanded eligibility for first-time homebuyers, and no sourcing required for large deposits.

FICO 700+DSCR 1+dscr-only

DSCR Loan for Investment Properties

confirmed 5/15/2026

A flexible DSCR loan program for investment properties, offering options for no-ratio qualification, various prepayment penalty terms, and support for short-term rentals.

FICO 640+LTV up to 80%DSCR 0.75+dscr-only

DSCR Loan for Investment Properties

confirmed 5/14/2026

DSCR investor loan program for investment properties with no seasoning on cash-out refinances and no ratio options available.

FICO 640+

DSCR Loan for Investment Properties

confirmed 5/20/2026

DSCR loan program for investment properties with various ratio tiers including No Ratio, .80-.99, 1-1.19, and Elite 1.20+.

dscr-only

DSCR Loan for Investment Properties

confirmed 5/11/2026

A DSCR loan program for investment properties that does not require a specific debt service coverage ratio, offering high LTV options for investors.

dscr-only

DSCR Loan for Investment Properties

confirmed 5/22/2026

A comprehensive suite of Non-QM loan products including bank statement, DSCR, P&L only, and ITIN options with up to 85% LTV and loan amounts up to $4 million.

LTV up to 85%alt-doc, dscr-only

DSCR Loan for Investment Properties

confirmed 5/10/2026

Debt Service Coverage Ratio loan for investment properties with no ratio options available and LTVs up to 85%.

FICO 620+LTV up to 85%dscr-only

DSCR Loan for Investment Properties

confirmed 6/4/2026

Investment property loan program qualified based on debt service coverage ratio.

FICO 720+LTV up to 85%dscr-only

DSCR Loan for Investment Properties

confirmed 5/16/2026

A true DSCR program with no ratio requirement, allowing for business purpose loans with credit scores as low as 620.

FICO 620+LTV up to 85%dscr-only

DSCR Loan for Investment Properties

confirmed 5/26/2026

DSCR program for investment properties allowing for true business purpose loans without requiring a license.

FICO 600+LTV up to 85%dscr-only, no-income

Specialized Investor Loan Program

confirmed 5/28/2026

Prime mortgage program for owner-occupied and non-owner occupied properties featuring P&L only options and DSCR options with no ratio requirements.

LTV up to 85%p-and-l, dscr-only

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.

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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

14 min read

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.

13 min read

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.